Posted: April 21st, 2016
Rogers Corporation is preparing its cash budget for July. The budgeted beginning cash balance is $25,000. Budgeted cash receipts total $141,000 and budgeted cash disbursements total $139,000. The desired ending cash balance is $30,000.
The excess (deficiency) of cash available over disbursements for July is:
Information on the actual sales and inventory purchases of the Law Company for the first quarter follow:
Collections from Law Company s customers are normally 60% in the month of sale, 30% in the month following sale, and 8% in the second month following sale. The balance is uncollectible. Law Company takes full advantage of the 3% discount allowed on purchases paid for by the end of the following month.
The company expects sales in April of $150,000 and inventory purchases of $100,000. Selling and administrative expenses for the month of April are expected to be $38,000, of which $15,000 is salaries and $8,000 is depreciation. The remaining selling and administrative expenses are variable with respect to the amount of sales in dollars. Those selling and administrative expenses requiring a cash outlay are paid for during the month incurred. Law Company s cash balance on March 1 was $43,000, and on April 1 was $35,000.
The expected cash disbursements during April for selling and administrative expenses would be:
Traverse Company manufactures and sells women s skirts. Each skirt (unit) requires 2.5 yards of cloth. Selected data from Traverse s master budget for next quarter are shown below:
Each unit requires 1.5 hours of direct labor, and the average hourly cost of Traverse s direct labor is $10. What is the cost of Traverse Company s direct labor in September?
Francis Manufacturing Company is currently preparing its cash budget for next month and has gathered the following information:
The beginning cash balance will be $6,000 and the company requires a minimum cash balance at the end of the month of $5,000. How much will Francis Manufacturing need to borrow to meet its cash needs for the month?
D) None of the above.
On January 1, Barnes Company has 8,000 units o
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