Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Managerial Accounting Expert

Problem:

ABC Company Ltd manufactures razor blades. Its estimated sales for period January 2010 through June 2010 are as follows: Rs.100,  000 per month from January through March and Rs.120, 000 per month from April through June. The sales for November and December of the previous year have been Rs.100, 000 each. Cash and credit sales are expected to be 20% and 80% respectively. The receivables from credit sales are expected to be collected as follows: 50% of receivables, on an average, one month from the date of sale and the balance 50%, on an average, two months from the date of sale. No bad debts losses are expected to occur. Other anticipated receipts are: 

(i) Rs.5, 000 from the sale of a machine in March, and

(ii) Interest of Rs.2, 000 on securities in June. 

The company plans to purchase materials worth Rs.40, 000 in January and February and materials worth Rs.48, 000 each month from March through April. The payments for these purchases are made approximately a month after the purchase. The purchases for December of the previous year have been Rs.40, 000 for which payment will be made in January 2010. Miscellaneous cash purchases of Rs.2, 000 per month are planned from January through June. Wage payments are expected to be Rs.15, 000 per month, January through June; general administrative and selling expenses are expected to be Rs.10, 000 per month. Dividend payment of Rs.20, 000 and tax payment of Rs.20, 000 are scheduled in June 2010. A machine worth Rs.50, 000 is proposed to be purchased on cash in March 2010.

Cash balance on 1st

January 2010 is Rs.22, 000 and the minimum cash balance required by the company is Rs.20, 000.

Required:

(i) Prepare budgets for cash receipts and payments.

(ii) Based on the receipt and payments computed above, prepare a summarised budgeted cash account.

Managerial Accounting, Accounting

  • Category:- Managerial Accounting
  • Reference No.:- M96206

Have any Question? 


Related Questions in Managerial Accounting

Which career is for you please respond to the

"Which Career is for You?" Please respond to the following: • Compare and contrast the key responsibilities of certified management accountants and certified public accountants. Select the career path that you plan to pu ...

Analysis last year pjs ice cream parlors inc reported an

Analysis Last year, PJ's Ice Cream Parlors, Inc. reported an ROE = 12.0%. The firm's debt ratio was 40%, sales were $25 million, and the capital intensity ratio was .75 times. What is the net income for PJ's last year? ( ...

Need research paper by december 5th 2016compose a research

Need Research Paper by December 5th, 2016 Compose a research paper that discusses the use of either the balanced scorecard or economic value added as a tool for improving organization performance. The paper must be doubl ...

Wyoming community college has three divisions liberal arts

Wyoming Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrar's De ...

Managerial accounting assignment questionwidget airlines is

Managerial Accounting Assignment Question Widget Airlines is a leading business in travelling industry and has experienced turbulent times during the past 10 years due to stiff competition and as a result of global slowd ...

Factoring resource constraints into product mix

Factoring resource constraints into product mix decisions Rose Incorporated manufactures two types of vases, small and large. The following per-unit data are available.                                                 Sma ...

Suppose a firm has had the historical sales figures shown

Suppose a firm has had the historical sales figures shown as follows. What would be the forecast for next year's sales using REGRESSION to estimate a trend? 2008: $2,000,000 2009: $1,800,000 2010: $2,200,000 2011: $2,400 ...

Problem 1 master budgetomega inc has developed the

Problem 1: Master Budget Omega, Inc. has developed the following sales forecast for the first six months of the coming year Month Sales (in units) January 30,000 February 50,000 March 70,000 April 80,000 May 60,000 June ...

Accounting paperwrite a 1000 - 1250 word paper on the

Accounting Paper Write a 1,000 - 1250 word paper on the following topic: Describe the role of managerial accounting in contemporary business. Provide one specific, real-life example of how managerial accounting helps man ...

Task question 1 1000 wordsmather and peison 2006 report

Task Question 1 (1000 words) Mather and Peison (2006) report that public debt contracts tend to have a lower average number of accounting based debt covenants as well as less binding debt covenants relative to private de ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro