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ACC - Sanchez Co. & NASCAR COMPANY Problem

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Question;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: $63,000.b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,770,000, June (actual), $1,260,000, and July (budgeted), $1,470,000.c. Payments on merchandise purchases: 70% in the month of purchase and 30% in the month following purchase. Purchases amounts are: June (actual), $480,000, and July (budgeted), $690,000.d. Budgeted cash disbursements for salaries in July: $400,000.e. Budgeted depreciation expense for July: $13,000.f. Other cash expenses budgeted for July: $270,000.g. Accrued income taxes due in July: $100,000.h. Bank loan interest due in July: $8,500.SANCHEZ COMPANYCash BudgetFor The Month Ended July 31Total cash available $Cash disbursements Total cash disbursements $value:1.00 pointsFollowing information relates to Sanchez Co.a. Beginning cash balance on July 1: $45,000.b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,548,000, June (actual), $1,080,000, and July (budgeted), $1,260,000.c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases amounts are: June (actual), $387,000, and July (budgeted), $600,000.d. Budgeted cash disbursements for salaries in July: $189,900.e. Budgeted depreciation expense for July: $10,800.f. Other cash expenses budgeted for July: $135,000.g. Accrued income taxes due in July: $80,000 (related to June).h. Bank loan interest due in July: $5,940.Additional Information:a. Cost of goods sold is 44% of sales.b. Inventory at the end of June is $72,000 and at the end of July is $117,600.c. Salaries payable on June 30 are $45,000 and are expected to be $36,000 on July 31.d. The equipment account balance is $1,440,000 on July 31. On June 30, the accumulated depreciation on equipment is $252,000.e. The $5,940 cash payment of interest represents the 1% monthly expense on a long-term bank loan of $594,000.f. Income taxes payable on July 31 are $111,888, and the income tax rate applicable to the company is 30%.g. The only other balance sheet accounts are: Common Stock, with a balance of $532,000 on June 30, and Retained Earnings, with a balance of $964,800 on June 30.Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31. (Be sure to list the assets and liabilities in order of their liquidity. Input all amounts as positive values. Omit the "$" sign in your response.)SANCHEZ COMPANYBudgeted Income StatementFor The Month Ended July 31SANCHEZ COMPANYBudgeted Balance SheetAs of July 31Assets Total Current Assets Total Assets $Liabilities and Equity Liabilities Total Current Liabilities Stockholders? Equity Total Liabilities and Equity $Nascar Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending inventory for the first quarter will be 40,500 units. The following unit sales of the transmissions are expected during the rest of the year: second quarter, 440,000 units, third quarter, 238,000 units, and fourth quarter, 426,500 units. Company policy calls for the ending inventory of a quarter to equal 30% of the next quarter's budgeted sales.Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. (Amount to be deducted should be indicated with a minus sign.)NASCAR COMPANYProduction BudgetSecond and Third QuartersSecond Quarter Third QuarterBudgeted ending inventories Required units of available production Units to be produced

 

Paper#41885 | Written in 18-Jul-2015

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