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Grand Canyon ACC350 unit 3 assignment




Question;Please complete the following exercises and/or problems from the textbook:E22-24E22-27CP22-56E22A-3222-24 Preparing an operating budgetDunbar 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, withsales 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 of10% of the next month?s sales. Prepare a sales budget and a production budget forDunbar for April, May, and June.May pkg. produced 3,110E22-27 Preparing a financial budgetCramer Company projects the following sales for the first three months of theyear: $12,500 in January, $13,240 in February, and $14,600 in March. Thecompany expects 70% of the sales to be cash and the remainder on account. Saleson account are collected 50% in the month of the sale and 50% in the followingmonth. The Accounts Receivable account has a zero balance on January 1. Roundto the nearest dollar.Requirements1. Prepare a schedule of cash receipts for Cramer for January, February, andMarch. What is the balance in Accounts Receivable on March 31?2. Prepare a revised schedule of cash receipts if receipts from sales on accountare 60% in the month of the sale, 30% in the month following the sale, and10% in the second month following the sale. What is the balance in AccountsReceivable on March 31?P22-56 Preparing a financial budgetThis problem continues the Davis Consulting, Inc. situation from Problem P21-63 ofChapter 21. Assume Davis Consulting began January with $29,000 cash. Managementforecasts that cash receipts from credit customers will be $49,000 in January and$51,500 in February. Projected cash payments include equipment purchases ($17,000in January and $40,000 in February) and selling and administrative expenses ($6,000each 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. Davisborrows 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 onemonth after the loan.Requirements1. Prepare Davis Consulting?s cash budget for January and February 2013.2. How much cash will Davis borrow in February if cash receipts from customersthat 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;Total;March 31 June 30 Sept 30 Nine Mth Total;Cash;sales, 20% $24,000 $34,000 $29,000 $87,000;Credit;sales, 80% 96,000 136,000 116,000 348,000;Total;sales $120,000 $170,000 $145,000;$435,000;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.


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