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Question;Exercise 23-1 Preparation of merchandise purchases budgets (for three;periods) L.O. P1;[The following information applies to;the questions displayed below.];Formworks;Company prepares monthly budgets. The current budget plans for a September;ending inventory of 19,000 units. Company policy is to end each month with;merchandise inventory equal to a specified percent of budgeted sales for the;following month. Budgeted sales and merchandise purchases for the three most;recent months follow.;Sales (Units);Purchases (Units);July;210,000;218,000;August;290,000;290,000;September;290,000;280,000;Section Break;Difficulty: Medium;Exercise 23-1 Preparation of merchandise purchases budgets (for three;periods) L.O. P1;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;1.;award:3 out of;3.00 points;Exercise 23-1 Part 1;1.;Prepare;the merchandise purchases budget for the months of July, August, and;September. (Input all amounts as positive;values. Omit the "%" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 23-1 Part 1;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;2.;award:1 out of;1.00 point;Exercise 23-1 Part 2;2.;Compute;the ratio of ending inventory to the next month?s sales for each budget;prepared in part 1.(Omit the "%" sign in;your response.);Ratio;of ending inventory to next month sales;10 %;eBook LinkView Hint #1;3.;award:1 out of;1.00 point;Exercise 23-1 Part 3;3.;How;many units are budgeted for sale in October?;eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 23-1 Part 3;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;4.;award:2.98 out of;3.00 points;Exercise 23-2 Preparation of cash budgets (for three periods) L.O. P1;Kasik;Co. budgeted the following cash receipts and cash disbursements for the first;three months of next year.;Cash;Receipts;Cash;Disbursements;January;$;525,000;$;477,000;February;403,500;354,000;March;478,000;522,000;According;to a credit agreement with the company?s bank, Kasik promises to have a;minimum cash balance of $30,000 at each month-end. In return, the bank has;agreed that the company can borrow up to $160,000 at an annual interest rate;of 12%, paid on the last day of each month. The interest is computed based on;the beginning balance of the loan for the month. The company has a cash;balance of $30,000 and a loan balance of $60,000 at January 1.;Prepare;monthly cash budgets for each of the first three months of next year. (Input all amounts as positive values except negative;preliminary cash balance and repayment of loan to bank which should be;indicated by a minus sign. Leave no cells blank - be certain to enter;0" wherever required. Omit the "$" sign in your;response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 23-2 Preparation of cash budgets (for three periods) L.O. P1;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;5;award:2 out of;2.00 points;Exercise 23-3 Preparation of a cash budget L.O. P1;Use the;following information to prepare the July cash budget for Sanchez Co. It;should show expected cash receipts and cash disbursements for the month and;the cash balance expected on July 31. (Input all amounts as positive values. Omit the;$" sign in your response.);a.;Beginning;cash balance on July 1: $75,000.;b.;Cash;receipts from sales: 40% is collected in the month of sale, 50% in the next;month, and 10% in the second month after sale (uncollectible accounts are;negligible and can be ignored). Sales amounts are: May (actual), $1,860,000;June (actual), $1,250,000, and July (budgeted), $1,440,000.;c.;Payments;on merchandise purchases: 50% in the month of purchase and 50% in the month;following purchase. Purchases amounts are: June (actual), $500,000, and July;(budgeted), $760,000.;d.;Budgeted;cash disbursements for salaries in July: $180,000.;e.;Budgeted;depreciation expense for July: $15,000.;f.;Other;cash expenses budgeted for July: $180,000.;g.;Accrued;income taxes due in July: $90,000.;h.;Bank;loan interest due in July: $5,500.;eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 23-3 Preparation of a cash budget L.O. P1;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;6.;award:5 out of;5.00 points;Exercise 23-4 Preparing a budgeted income statement and balance sheet;L.O. P2;Following;information relates to Sanchez Co.;a.;Beginning;cash balance on July 1: $40,000.;b.;Cash;receipts from sales: 24% is collected in the month of sale, 50% in the next;month, and 26% in the second month after sale (uncollectible accounts are;negligible and can be ignored). Sales amounts are: May (actual), $1,376,000;June (actual), $960,000, and July (budgeted), $1,120,000.;c.;Payments;on merchandise purchases: 48% in the month of purchase and 52% in the month;following purchase. Purchases amounts are: June (actual), $344,000, and July;(budgeted), $600,000.;d.;Budgeted;cash disbursements for salaries in July: $168,800.;e.;Budgeted;depreciation expense for July: $9,600.;f.;Other;cash expenses budgeted for July: $120,000.;g.;Accrued;income taxes due in July: $80,000 (related to June).;h.;Bank;loan interest due in July: $5,280.;Additional;Information;a.;Cost of;goods sold is 35% of sales.;b.;Inventory;at the end of June is $64,000 and at the end of July is $272,000.;c.;Salaries;payable on June 30 are $40,000 and are expected to be $32,000 on July 31.;d.;The;equipment account balance is $1,280,000 on July 31. On June 30, the;accumulated depreciation on equipment is $224,000.;e.;The;$5,280 cash payment of interest represents the 1% monthly expense on a;long-term bank loan of $528,000.;f.;Income;taxes payable on July 31 are $151,312, and the income tax rate applicable to;the company is 35%.;g.;The;only other balance sheet accounts are: Common Stock, with a balance of $562,880;on June 30, and Retained Earnings, with a balance of $857,600 on June 30.;Prepare;a budgeted income statement for the month of July and a budgeted balance;sheet for July 31. (Be sure to list the;assets and liabilities in order of their liquidity. Input all amounts as;positive values. Omit the "$" sign in your response.);eBook LinkView Hint #1;7.;award:3 out of;3.00 points;Exercise 23-6 Computing budgeted purchases and costs of goods sold L.O.;P1;Sand;Dollar Company purchases all merchandise on credit. It recently budgeted the;following month-end accounts payable balances and merchandise inventory;balances. Cash payments on accounts payable during each month are expected to;be: May, $1,300,000, June, $1,350,000, July, $1,300,000, and August;$1,600,000.;rev: 04_30_2012;Accounts;Payable;Merchandise Inventory;May;31;$;130,000;$;220,000;June;30;150,000;400,000;July;31;300,000;200,000;August;31;130,000;300,000;1.;Compute;the budgeted amounts of merchandise purchases for June, July, and August. (Omit the "$" sign in your response.);June;July;August;Budgeted;merchandise purchases;$ 1,370,000;$ 1,450,000;$ 1,430,000;2.;Compute;the budgeted amounts of cost of goods sold for June, July, and August. (Omit the "$" sign in your response.);June;July;August;Budgeted;cost of goods sold;$ 1,190,000;$ 1,650,000;$ 1,330,000;eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 23-6 Computing budgeted pu;Exercise 23-7 Computing budgeted accounts payable and purchases-sales;forecast in dollars L.O. P1, P2;[The following information applies to;the questions displayed below.];Sound;Check, a merchandising company specializing in home computer speakers;budgets its monthly cost of goods sold to equal 70% of sales. Its inventory;policy calls for ending inventory in each month to equal 20% of the next;month?s budgeted cost of goods sold. All purchases are on credit, and 20% of;the purchases in a month is paid for in the same month. Another 30% is paid;for during the first month after purchase, and the remaining 50% is paid for;in the second month after purchase. The following sales budgets are set;July, $300,000, August, $240,000, September, $270,000, October, $225,000, and;November, $215,000.;Section Break;Difficulty: Medium;Learning Objective: 23-P2 Link both operating and capital expenditures;budgets to budgeted financial statements.;Exercise 23-7 Computing budgeted accounts payable and purchases-sales;forecast in dollars L.O. P1, P2;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;8.;award:3 out of;3.00 points;Exercise 23-7 Part 1;(1);Compute;the budgeted merchandise purchases for July, August, September, and;October. (Omit the "$" sign in your;response.);July;August;September;October;Budgeted;merchandise purchases;$ 201,600;$ 172,200;$ 182,700;$ 156,100;eBook Links (2)View Hint #1;Worksheet;Difficulty: Medium;Learning Objective: 23-P2 Link both operating and capital expenditures;budgets to budgeted financial statements.;Exercise 23-7 Part 1;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;9.;award:2 out of;2.00 points;Exercise 23-7 Part 2;(2);Compute;the budgeted payments on accounts payable for September and October. (Omit the "$" sign in your response.);September;October;Budgeted;payments on accounts payable;$ 189,000;$ 172,130;eBook Links (2)View Hint #1;Worksheet;Difficulty: Medium;Learning Objective: 23-P2 Link both operating and capital expenditures;budgets to budgeted financial statements.;Exercise 23-7 Part 2;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;10.;award:2 out of;2.00 points;Exercise 23-7 Part 3;(3);Compute;the budgeted ending balances of accounts payable for September and October. (Omit the "$" sign in your response.);September;October;Budgeted;ending balances of accounts payable;$ 232,260;$ 216,230;eBook Links (2)View Hint #1;Worksheet;Difficulty: Medium;Learning Objective: 23-P2 Link both operating and capital expenditures;budgets to budgeted financial statements.;Exercise 23-7 Part 3;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;11.;award:0.73 out of;2.00 points;Exercise 23-9A Direct materials budget L.O. P3;Nascar;Company manufactures an innovative automobile transmission for electric cars.;Management predicts that ending inventory for the first quarter will be;39,100 units. The following unit sales of the transmissions are expected;during the rest of the year: second quarter, 220,000 units, third quarter;488,000 units, and fourth quarter, 247,000 units. Company policy calls for;the ending inventory of a quarter to equal 30% of the next quarter?s budgeted;sales. Nascar Company reports direct materials requirements of 0.53;pounds per unit. It also aims to end each quarter with an ending;inventory of direct materials equal to 30% of next quarter's budgeted;materials requirements. Direct materials cost $177 per unit.;Required;Prepare;a direct materials budget for the second quarter. (Round your pounds per unit to 2 decimal places and;other answers to the nearest dollar amount. Amounts to be deducted;should be indicated with a minus sign. Omit the "$" & "lbs;signs in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 23-9A Direct materials budget L.O. P3;Learning Objective: 23-P3 Appendix 23A-Prepare production and;manufacturing budgets.;12.;award:0.80 out of;2.00 points;Exercise 23-10A Direct labor budget L.O. P3;Nascar;Company manufactures an innovative automobile transmission for electric cars.;Management predicts that ending inventory for the first quarter will be;37,600 units. The following unit sales of the transmissions are expected;during the rest of the year: second quarter, 221,000 units, third quarter;487,000 units, and fourth quarter, 240,000 units. Company policy calls for;the ending inventory of a quarter to equal 32% of the next quarter?s budgeted;sales. Each transmission requires 3.5 direct labor hours, at a cost of $18.6;per hour.;Required;Prepare;a direct labor budget for the second quarter. (Round per hour answers to 2 decimal places and other dollar values to;nearest whole dollar amount. Omit the "$" sign in your response.);eBook LinkView Hint #1;Worksheet;13.;award:2 out of;2.00 points;Exercise 23-11 Budgeted cash disbursements L.O. P1;Jake;Company reports the following;July;August;September;Sales;$;29,000;$;37,000;$;41,000;Purchases;17,110;21,830;29,000;Payments;for purchases are made in the month after purchase. Selling expenses are 20%;of sales, administrative expenses are 8% of sales, and both are paid in the;month of sale. Rent expense of $1,800 is paid monthly. Depreciation expense;is $1,600 per month.;Prepare;a schedule of budgeted cash disbursements for August and September. (Input all amounts as positive value. Omit the;$" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 23-11 Budgeted cash disbursements L.O. P1;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;14.;award:2 out of;2.00 points;Exercise 23-12 Budgeted cash receipts L.O. P1;Emily;Company has sales on account and for cash. Specifically, 56% of its sales are;on account and 44% are for cash. Credit sales are collected in full in the;month following the sale. The company forecasts sales of $534,000 for April;$544,000 for May, and $569,000 for June. The beginning balance of Accounts;Receivable is $299,400 on April 1.;Prepare;a schedule of budgeted cash receipts for April, May, and June. (Input all amounts as positive values. Omit the;$" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 23-12 Budgeted cash receipts L.O. P1;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;15.;award:3 out of;3.00 points;Exercise 23-13 Cash budget L.O. P1;Kaizen;Corp. requires a minimum $8,000 cash balance. If necessary, loans are taken;to meet this requirement at a cost of 1% interest per month (paid monthly).;Any excess cash is used to repay loans at month-end. The cash balance on July;1 is $8,400 and the company has no outstanding loans. Forecasted cash;receipts (other than for loans received) and forecasted cash payments (other;than for loan or interest payments) are;July;August;September;Cash;receipts;$;24,000;$;32,000;$;40,000;Cash;disbursements;28,000;30,000;32,000;Prepare;a cash budget for July, August, and September. (Input all amounts as positive values. Leave no cells blank;- be certain to enter "0" wherever required. Round your;intermediate calculations and final answers to the nearest dollar amount.;Omit the "$" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 23-13 Cash budget L.O. P1;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;16.;award:4 out of;4.00 points;Exercise 23-14 Cash budget L.O. P1;Fabrice;Corp. requires a minimum $7,900 cash balance. If necessary, loans are taken;to meet this requirement at a cost of 2% interest per month (paid monthly).;Any excess cash is used to repay loans at month-end. The cash balance on;October 1 is $7,900 and the company has an outstanding loan of $3,900.;Forecasted cash receipts (other than for loans received) and forecasted cash;payments (other than for loan or interest payments) follow.;October;November;December;Cash;receipts;$;23,900;$;17,900;$;21,900;Cash;disbursements;26,850;16,900;14,100;Prepare;a cash budget for October, November, and December. (Input all amounts as positive values. Leave no cells blank;- be certain to enter "0" wherever required. Round your;intermediate calculations and final answers to the nearest dollar amount.;Omit the "$" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 23-14 Cash budget L.O. P1;Learning Objective: 23-P1 Prepare each component of a master budget;and link each to the budgeting process.;17.;award:4 out of;4.00 points;Exercise 23-17 Budgeted balance sheet L.O. P2;The;following information is available for Zhao Company;a.;The;cash budget for March shows an ending bank loan of $18,000 and an ending cash;balance of $65,200.;b.;The;sales budget for March indicates sales of $136,000. Accounts receivable are;expected to be 65% of the current-month sales.;c.;The;merchandise purchases budget indicates that $90,600 in merchandise will be;purchased on account in March. Purchases on account are paid 100% in the;month following the purchase. Ending inventory for March is predicted to be;760 units at a cost of $35 each.;d.;The;budgeted income statement for March shows net income of $49,600. Depreciation;expense of $2,600 and $27,600 in income tax expense were used in computing;net income for March. Accrued taxes will be paid in April.;e.;The;balance sheet for February shows equipment of $82,400 with accumulated;depreciation of $31,600, common stock of $33,000, and ending retained;earnings of $9,600. There are no changes budgeted in the equipment or common;stock accounts.;Prepare;a budgeted balance sheet for March. (Be sure;to list the assets and liabilities in order of their liquidity. Input all;amounts as positive values. Omit the "$" sign your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 23-17 Budgeted balance sheet L.O. P2;Learning Objective: 23-P2 Link both operating and capital expenditures;budgets to budgeted financial statements.;18.;award:4 out of;4.00 points;Exercise 23-18 Budgeted income statement L.O. P2;Zulu;Inc., is preparing its master budget for the first quarter. The company sells;a single product at a price of $25 per unit. Sales (in units) are forecasted;at 41,000 for January, 61,000 for February, and 51,000 for March. Cost of;goods sold is $12 per unit. Other expense information for the first quarter;follows.;Commissions;10;%;of;sales;Rent;$;18,000;per;month;Advertising;14;%;of;sales;Office;salaries;$;71,000;per;month;Depreciation;$;55,000;per;month;Interest;14;%;annually;on a $250,000 note payable;Tax;rate;30;%;Prepare;a budgeted income statement for this first quarter. (Input all amounts as positive values. Do not round;intermediate calculations. Omit the "$" sign your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium

 

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