ACC-350 Module 3 Topic 3 Assignment Please complete the following exercises and/or problems from the textbook E22-24 E22-27 CP22-56 E22A-32
Assignment
Please complete the following exercises and/or problems from the textbook:
E22-24
E22-27
CP22-56
E22A-32
Click here to Find All Assignments for ACC-350 Course Didn’t find your answers? Don’t worry we are here to help you! Ask Questions
Prepare your answers in an Excel workbook, using one worksheet per exercise or problem.
Save your workbook using the filename LastnameFirstinitial.ACC350.T# where the # represents the topic number. For example, John Doe would submit assignment #5 using the following name: DoeJ.ACC350.T5.
You are not required to submit this assignment to Turnitin.
E22-24 Preparing an operating budget
Dunbar Company manufactures drinking glasses. One unit is a package of 8 glasses, which sells for $20. Dunbar projects sales for April will be 3,000 packages, with sales increasing by 100 packages per month for May, June, and July. On April 1, Dunbar has 250 packages on hand but desires to maintain an ending inventory of 10% of the next month’s sales. Prepare a sales budget and a production budget for Dunbar for April, May, and June.
E22-27 Preparing a financial budget
Cramer Company projects the following sales for the first three months of the year: $12,500 in January; $13,240 in February; and $14,600 in March. The company expects 70% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar. Requirements 1. Prepare a schedule of cash receipts for Cramer for January, February, and March. What is the balance in Accounts Receivable on March 31? 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31?
CP22-56 Preparing a financial budget
Assume Davis Consulting began January with $29,000 cash. Management forecasts that cash receipts from credit customers will be $49,000 in January and $51,500 in February. Projected cash payments include equipment purchases ($17,000 in January and $40,000 in February) and selling and administrative expenses ($6,000 each month).
Davis’s bank requires a $20,000 minimum balance in the firm’s checking account. At the end of any month when the account balance falls below $20,000,
the bank automatically extends credit to the firm in multiples of $5,000. Davis borrows as little as possible and pays back loans each month in $1,000 increments, plus 5% interest on the entire unpaid principal. The first payment occurs one month after the loan.
Requirements
- Prepare Davis Consulting’s cash budget for January and February 2013.
- How much cash will Davis borrow in February if cash receipts from customers that month total $21,500 instead of $51,500?
E22A-32 Preparing an operating budget
Tremont, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2014, follows:
| Quarter Ended | Nine-Month | |||
| March 31 | June 30 | September 30 | Total | |
| CASH SALES 20% | $ 24,000.00 | $ 34,000.00 | $ 29,000.00 | $ 87,000.00 |
| CREDIT SALES 80% | $ 96,000.00 | $ 136,000.00 | $ 116,000.00 | $ 348,000.00 |
| TOTAL SALES | $ 120,000.00 | $ 170,000.00 | $ 145,000.00 | $ 435,000.00 |
In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarter’s ending inventory should not be below $20,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $220,000 during the fourth quarter.
The January 1 inventory was $32,000. Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period.
Course: ACC-350 Managerial Accounting
School: Grand Canyon University
- : 06/10/2019
- : 60
