The balance sheet of Phototec, Inc., a distributor of photographic supplies, as
ID: 2372072 • Letter: T
Question
The balance sheet of Phototec, Inc., a distributor of photographic supplies, as of May 31 is given below:
626,250
750,000
90,000
750,000
Sales are budgeted at $273,000 for June. Of these sales, $75,000 will be for cash; the remainder will be credit sales. One-half of a month’s credit sales are collected in the month the sales are made, and the remainder is collected the following month. All of the May 31 accounts receivable will be collected in June.
Purchases of inventory are expected to total $195,000 during June. These purchases will all be on account. Fifty percent of all inventory purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the May 31 accounts payable to suppliers will be paid during June.
Selling and administrative expenses for June are budgeted at $31,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,000 for the month.
The note payable on the May 31 balance sheet will be paid during June. The company’s interest expense for June (on all borrowing) will be $500, which will be paid in cash.
During June, the company will borrow $20,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.
Prepare schedule of expected cash collections from sales and a schedule of expected cash disbursements for inventory purchases. (Omit the "$" sign in your response.)
Prepare a cash budget for June. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Omit the "$" sign in your response.)
Prepare a budgeted balance sheet as of June 30. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.)
I NEED HELP WITH THIS QUESTION PLEASE
The balance sheet of Phototec, Inc., a distributor of photographic supplies, as of May 31 is given below:
Explanation / Answer
Required:
1a.
Prepare schedule of expected cash collections from sales and a schedule of expected cash disbursements for inventory purchases. (Omit the "$" sign in your response.)
Schedule of Expected Cash Collections
Cash sales-June
$ 75,000
Collections on accounts receivable:
May 31 balance
174,000
June(
Total cash receipts
$ 249,000
Schedule of Expected Cash Disbursements
May 31 accounts payable balance
$ 90,000
June purchases
195,000
Total cash payments
$ 285,000
1b.
Prepare a cash budget for June. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Omit the "$" sign in your response.)
Phototec, Inc.
Cash Budget
For the Month of June
Cash balance, beginning
11,250
Add receipts from customers
285,000
Total cash available
296,250
Less disbursements:
Purchase of inventory
195,000
Selling and administrative expenses
31,000
Purchases of equipment
9,000
Total cash disbursements
61,250
Excess of receipts over disbursements
Financing:
Borrowings-note
20,000
Repayments-note
16,500
Interest
500
Total financing
3,000
Cash balance, ending
$ 64,250
1a)
Schedule of Expected Cash Collections
Cash sales-June
75,000
Collections on accounts receivable:
May 31 balance
June
may Accounts receivable
75,000
credit sale 1 half( 273,000-75,000 = 198,000) 198,000 one half
99,000
Total cash receipts
$ 249,000
Schedule of Expected Cash Disbursements
May 31 accounts payable balance
$ 90,000
June purchases
Purchases of inventory
195,000
Total cash payments
$ 285,000
1b)
Phototec, Inc.
Cash Budget
For the Month of June
Cash balance, beginning
$ 11,250
Add receipts from customers
$ 285,000
Total cash available
$296,250
Less disbursements:
Purchase of inventory
$195,000
Selling and administrative expenses
$31,000
Purchases of equipment
$9,000
Total cash disbursements
$61,250
Excess of receipts over disbursements
Financing:
Borrowings-note
$20,000
less: Repayments-note
16,500
less: Interest
$500
Total financing
$3,000
Cash balance, ending
$64,250
As per rules u should not ask more than one question but I am giving for first two parts thank you…
Required:
1a.
Prepare schedule of expected cash collections from sales and a schedule of expected cash disbursements for inventory purchases. (Omit the "$" sign in your response.)
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