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Accounting Question




Question;Question;1. Prepare a budget for this year for the Administrative Department;at Tom's Toyota Company based on the following information;Last Year Forecasting Assumption Budget for this Year;Salaries $60,000 2% increase;Stationary $ 900 1% decrease;Telephone $ 2,500 3% increase;Electricity $ 1,200 2.5% increase;Office Rent $10,000 2% increase;Depreciation $ 4,000 no change;Total: $78,600;Question 2. Define a "Static Budget.;Question 3. Define a "Flexible Budget.;Question 4. Define the term "Zero-based Budgeting.;Question 5. Define "Period Budgets.;Question 6. Define "Rolling Budgets.;Question 7. Big Bob's Discount Appliances expects sales of $5,000;$5,000, and $10,000 during April, May, and June (big sale in;June). To build business, Big Bob lets all customers buy on credit;and all do so. In the past, 50% of Big Bob's sales have been;collected during the month of sale, 40% are collected the following month, and;10% the month after that. If this trend continues, what will be Big;Bob's total cash collections in the month of June?;Question 8. Little Louie's expects to have $100 in cash on hand at;the beginning of June, and the company's target cash balance is;$100. Net cash flow for June is minus $300. Assuming that;Little Louie's borrows to meet shortterm cash needs and pays back as soon as;surplus cash is available, what will be the company's ending cash balance after;financing at the end of June?;Question 9. Ma & Pa Kettle's Chili Company has begun selling a;new chili recipe and they want you to help them with next year's budgeted;financial statements. Using the worksheet below, complete Ma;Pa's forecast and answer the questions which follow.;Assumptions;To begin with, Ma & Pa are sure sales will grow 50% next;year. Assume that is true. Then assume that COGS, Current;Assets, and Current Liabilities all vary directly with Sales (that means if;sales grows a certain percentage, then the account in question will grow by;that same percentage). Assume that fixed expenses will remain;unchanged and that $1,000 worth of new Fixed Assets will be obtained next;year. Lastly, the current dividend policy will be continued next;year.;Ma & Pa Kettle Chili Company, Inc.;Financial Forecast;Estimated;This year for next year;Sales $10,000;COGS 4,000;Gross Profit 6,000;Fixed Expenses 3,000;BeforeTax Profit 3,000;Tax @ 33.3333% 1,000;Net Profit $2,000;Dividends $0;Current Assets $25,000;Net Fixed Assets 15,000;Total Assets $40,000;Current Liabilities $17,000;Longterm debt 3,000;Common Stock 7,000;Retained Earnings 13,000;Total Liabs & Eq $40,000;Amount need to balance the balance sheet;(Projected total assets minus projected;total liabilities & equity *);* If this number is positive it means Ma & Pa need additional external;funding to finance their projected asset growth. If this number is;negative it means Ma & Pa have programmed too much financing for the amount


Paper#45511 | Written in 18-Jul-2015

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