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Do Hornework almashared - Google Chrome Secure l https://www.math 375&questionld-18flushed; falseicld 4746422kcenter BA 213 Managerial Accounting F17 TR Homework: Master Budget Part 2 Score: 0 of 1 pt S22A-19 (similar to) Mass Company has $10,500 in cash on hand on Jaruary 1 and has collected the following budget data 9of9(Scomplete) Hw Score: 44 44%, Question (Cick the icon to vew te tuprtaa ) Assume Mass has cash payments for seling and administratve expenses Cash payments Punchases of merchandise nventory Data Table Seling and adeninistretive expenses Tot cash pameres Endng cash balance belore Cnanding Mnimum cash balance desired Projected cash excess tdefcny) Finanong Sales Cash recepts tom customers Cash S 1400,000S640 000 872 000 32 416 851.880 561 300 payments for merchandise inventary Berrowing Print Done Total efects of cranong Endng cash balane Enter any number in the edit flelds and then cick Check Answe Clear All Chock Ar opyignt 2017 Parson Educaton archExplanation / Answer
Answer;
Mas Company
Cash budget
For the month ending February 28
January
February
Beginning Cash Balance
10500
229,080
Add:
Receipt
Collection from Customer
851880
872000
Cash Available
862380
1101080
Payment Made in cash
Purchase of inventory
561300
532416
selling and admin Expanses (W.N.-1)
72,000
49,200
Total cash payment
633,300
581,616
Cash balance before financing
229,080
519,464
Desired Minimum Cash bale
-8540
-8540
projected cash/ Excess (Deficiency)
220,540
510,924
Financing
Borrowing
0
0
Principal payment
0
0
Total effect if financing
0
0
Cash balance ending
229,080
519,464
Conclusion:
Mas Company is not required to borrow money at the end of February because ending balance is more then what is required minimum
Working notes for the above answer
W.N-1
January
February
Salary (A)
30,000
30,000
Commission on sale (3%*1,400,000) (3%*640,000) (B)
42000
19200
Total selling and admin Expanses C = (A+B)
72,000
49,200
Mas Company
Cash budget
For the month ending February 28
January
February
Beginning Cash Balance
10500
229,080
Add:
Receipt
Collection from Customer
851880
872000
Cash Available
862380
1101080
Payment Made in cash
Purchase of inventory
561300
532416
selling and admin Expanses (W.N.-1)
72,000
49,200
Total cash payment
633,300
581,616
Cash balance before financing
229,080
519,464
Desired Minimum Cash bale
-8540
-8540
projected cash/ Excess (Deficiency)
220,540
510,924
Financing
Borrowing
0
0
Principal payment
0
0
Total effect if financing
0
0
Cash balance ending
229,080
519,464
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