- The Cantroller Of Ming Ware Ceramics Inc. WishesT CengageNOW2Online teaching a

Question

- The Cantroller Of Ming Ware Ceramics Inc. WishesT CengageNOW2Online teaching and learning resa...+ Chapter 21 HW Show Me How Calculator eBook Print Item 1. EX.21-10.ALGO Cash Budget 2. EX.21-13.ALGO The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: 3. EX.21-16.ALGO Scptember October November 4. PR.21-04A ALGO Sales Manufacturing costs Selling and administrative expenses Capital expenditures The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $8,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. $122,000 $155,000 $201,000 51,000 67,000 72,000 43,000 47,00076,000 48,000 Current assets as of September 1 indude cash of $46,000, marketable securities of $66,000, and accounts receivable of $136,400 ($107,000 from July sales and $29,400 from August sales). Sales on account for July and August were $98,000 and $107,000, respectively. Current liabilties as of September 1 include $8,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $19,000 will be made in October. Bridgeport's regular quarterly dividend of8,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 45,000. Required: 1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculations. Check My Work Previous Progress: 414 items Assignment Score: 75% All work saved. Email Instructor Save and Exit Submit Assignment for Grading

Explanation / Answer

1) Calculation of Cash receipts (Amounts in $)

Calculation of cash payments for manufacturing costs (Amounts in $)

Bridgeport Housewares Inc.  

Cash Budget

For the three months ending November 30 (Amounts in $)

2) The budget indicates that the minimum cash balance will not be maintained in November. This situation can be corrected by borrowing and/or by the sale of the marketable securities, if they are held for such purposes. At the end of september and october, the cash balance will exceed the minimum desired balance.  

Particulars September October November Cash Sales (10% of current month sales) 12,200 15,500 20,100 Collections from Accounts Receivables For the month of: July Sales (30%) 29,400 - - August Sales 74,900 32,100 - September Sales (Credit sales is 90% of sales) - 76,860 32,940 October Sales (70% of credit sales in Nov.) - - 97,650 Total Collection from Accounts Receivable 104,300 108,960 130,590

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.