During May of 2019, XYZ Inc had an opening cash balance of $500,000, budgeted cash receipts of $400,000 and budgeted cash disbursements of $450,000. The company wishes to maintain a cash balance of $500,000 at the start of each month. Any surplus cash is promptly repaid to the bank while funds are borrowed at the start of each month to cover any anticipated shortfall. XYZ is subject to an annual interest rate of 6% per year (0.5% per month. How much interest expense did XYZ Inc. incur during May 2019? Select one: a. $150 b. $300 c. $250 d. Nil.
Q: Adams Entertainment sponsors rock concerts. The company is considering a contract to hire a band at…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: paid Website expenses, $2,770. b. Incurred manufacturing wages of $9,800, of which 80% was for…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: 1. Access the International Federation of Accountants Web site (www.ifac.org ) and briefly describe…
A: When performing audits, auditors are required to follow a set of principles and criteria known as…
Q: PT Partnership begins with 2 partners. Parrot contributes assets with a FMV of $50,000 and an…
A: In a partnership, the initial contributions made by partners are generally not taxable events for…
Q: Tyrell Co. entered into the following transactions involving short-term liabilities in 2017 and…
A: Notes payable is one of the form of liability being incurred in business. Regular interest payment…
Q: Lemke Industries purchased and consumed 80,000 gallons of direct material that was used in the…
A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…
Q: Describe the purpose of a purchase order by selecting the correct statement(s) below. (Check all…
A: The correct statements are:A purchase order is a document the purchasing department uses to place an…
Q: Required 1 Required 2 Prepare a cash budget, by month and in total, for the three-month period.…
A: Cash Budget : The cash budget is an estimate of cash receipts and their payment is composed of four…
Q: E8-13 Invoice Price P168,000 212,800 201,600 184,800 REQUIRED: Determine the amount to be paid in…
A: The credit terms are agreed for making (or receiving) payments and delivery of goods. The term FOB…
Q: Exercise 21-3 (Algo) Identifying cost type LO C1 Following are four series of costs measured at…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…
Q: In response to intense foreign competition, Florex Company has taken steps to improve the quality of…
A: QUALITY COST REPORTQuality cost report is a report that provides detailed information about the…
Q: Process equipment was purchased in the chemical industry in 2018 for OMR 58000 for an expected…
A: According to the question given, we need to prepare the depreciation…
Q: QUESTION 16 AT Pet Spa is a partnership owned equally by Travis and Ashley. The partnership had the…
A: ordinary income of a partnership refers to the profit or earnings generated from the regular…
Q: Ram grants to employees the option to buy shares of stock at $5 per share. A total of 100,000 shares…
A: As per IAS 102 In share based payments in case of options the company need to recognize expense on…
Q: PKT Ltd wanted to achieve a 25% GP for each sale completed. Inventory sales between AB and CF Ltd…
A: Answer:- Journal entries refer to the initial recording of financial transactions that are made in…
Q: Alfarsi Industries uses the net present value method to make investment decisions and requires a 15%…
A: Net Present Value Net present value of the investment means difference between present values of…
Q: Pharoah Inc. is a calendar-year corporation. Its financial statements for the years 2022 and 2021…
A: The Inventory management is an strategic process of managing, regulating, and optimizing a company's…
Q: Acquisition Cost of Long-Lived Asset The following data relate to a firm's purchase of a machine…
A: ACQUISITION COSTAquisition Cost are those costs which occur when a buyer purchases an asset for the…
Q: View Policies Current Attempt in Progress At Sunland Company, there are 910 units of ending work in…
A: Cost per equivalent unit is calculated by dividing total cost by equivalent units. The number of…
Q: Lukow Products is investigating the purchase of automated equipment that will save $100,000 each…
A: The objective of the question is to calculate the net present value (NPV) of the equipment before…
Q: Add the adjusting entries into the general journal
A: According to the question given, we need to prepare the general journal.General journal:A general…
Q: Required information [The following information applies to the questions displayed below.] Moran…
A: Unrecaputed 1250 gain is the provision under which the gain is recaptured equal to the depreciation…
Q: Selected data from the comparative statements of financial position of Granger Ltd. are shown below:…
A: HORIZONTAL ANALYSISHorizontal Analysis is one of the important analysis techniques for financial…
Q: Janet Lawerence the controller for Toy Bike Maker Inc is preparing a production budget for the yea…
A: Production budget :— This budget is prepared to estimate the number of units to be produced for…
Q: ong-term care services this year? Show your estimate for each elimination period. Elimination Period…
A: The elimination period is a crucial factor for policyholders to take into account when choosing…
Q: For the first week of 2022, Coby Co. pays wages of $6,000 and withholds $1,000 for federal income…
A: The payroll register contains the record of the employees’ details like basic salary, allowances,…
Q: Open a ledger account for Cash in balance column format. Post general journal entries that impact…
A: The ledger account is prepared in t-format. It is also called a t-account or subsidiary ledger. It…
Q: Asgard Farms, Inc., has a number of divisions that produce jams and jellies, condiments and…
A: Internal Transfer Price - Transfer pricing is the process of establishing the price at which one…
Q: ntory ince ion ble tal ving e se = Expense Unadj Trial Balance Dr Cr 4,600.00 7,850.00 3,600.00…
A: A 10 column worksheet shows the transition of financial information from the unadjusted trial…
Q: Assume that a company makes three products-Product A, Product B, and Product C-and provides the…
A: Production with limited factor we need to calculate contribution margin for limited key factor.…
Q: n December 15, a corporation declared a dividend of $1.50 per share on 28,000 shares of common…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: Grohs Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day…
A: Budgeting is a process of estimating the future outcomes well in advance so that relative decision…
Q: The master budget of Bramble Corp. shows that the planned activity level for next year is expected…
A: Flexible budget :— This budget is prepared by multiplying standard variable amount per activity…
Q: On February 1, 2024, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of…
A: The bonds are the debt securities either issued by government entity or corporations. The bonds are…
Q: Required information Problem 6-9B Record transactions and prepare a partial income statement using a…
A: The multi-step Income Statement is a detailed vertical format income statement in which we can have…
Q: Ned is an independent contractor working with Joe remodeling a home, and Joe pays him using…
A: The objective of the question is to understand how to report income received in the form of…
Q: The following information applies to the questions displayed below.) University Car Wash built a…
A: Depreciation is the allocation of cost of asset over the useful life of the asset.
Q: Read the transactions and fill in the Cash basis/Accrual basis table. Enter expenses in parentheses…
A: The accrual concept acts as the basis of accounting which states that transactions are recorded in…
Q: Boulware Company's budgeted production calls for 6,000 units in October and 9,000 units in November.…
A: Budgeted material purchases = production needed + Ending inventory needed - Beginning inventory…
Q: Wildhorse Co. purchased a machine on January 1, 2023, for $572.000. At that time, it was estimated…
A: Depreciation-as per sum of years digit method= (Number of useful years/sum of useful years)…
Q: 3. In the context of Nonconformance Costs, which is an example of an External Failure Cost? a)…
A: Nonconformance cost is the amount of money spent by the company when it fails to ensure the required…
Q: Required information [The following information applies to the questions displayed below.) On…
A: Businesses may use the depreciation deduction as a useful tool to gradually recoup the costs of…
Q: Altira Corporation provides the following information related to its inventory during the month of…
A: Lets understand the basics.Cost of goods sold and inventory can be calculated using,(1) FIFO…
Q: A company fails to record accrued wages for the current year. Which of the following statement is…
A: The accrued wages are the wages that are due for payment but not paid yet. The accrued wages are…
Q: During June, Fraser Company's material purchases amounted to 6,900 pounds at a price of $9.00 per…
A: Standard costs are estimates of the actual costs in a company’s production processThen, the actual…
Q: age hourly rate of $11.70, prepare a jou ecord actual costs, standard costs, and a
A: Labour Variance is the difference between the actual cost and standard cost. It is divided into…
Q: O's medical expenses paid during a 12-month period ending in the current year totaled $3,000. The…
A: A taxpayer can claim medical expenses if they are paid by the taxpayer for himself or his spouse or…
Q: Carla Vista Clark opened Carla Vista's Cleaning Service on July 1, 2022. During July, the following…
A: Journal is the first step of accounting of transactions. All day to day business transactions are…
Q: The management of Sheffield Industries estimates that credit sales for August, September, October,…
A: Cash collection means the amount of money estimated to be collected by the entity from the sales of…
Q: Smith Company inventory records indicate the following transactions for October. Smith uses a…
A: Inventory valuation refers to the process of assigning a monetary value to the inventory of a…
gop.2
During May of 2019, XYZ Inc had an opening cash balance of $500,000, budgeted cash receipts of $400,000 and budgeted cash disbursements of $450,000. The company wishes to maintain a cash balance of $500,000 at the start of each month. Any surplus cash is promptly repaid to the bank while funds are borrowed at the start of each month to cover any anticipated shortfall. XYZ is subject to an annual interest rate of 6% per year (0.5% per month. How much interest expense did XYZ Inc. incur during
May 2019?
Select one:
a. $150
b. $300
c. $250
d. Nil.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- The following information was extracted from NOVO cash budget for July 2019. The following data are as follows: Excess of cash available over disbursements is P700; cash balance as of July 1, 2019 is P 5,000 and a total cash disbursement for July is P22,500. The business can only borrow in round figures of P1,000 amounts. If the business is required to maintain a minimum cash balance of P100,000, how much money should be borrowed in July?Dear Bartleby, I need assistance calculating interest for part b. b. Assume that management of SeaTech Inc. desires to maintain a minimum cash balance of $10,000 at the beginning of each month and has arranged a $50,000 line of credit with a local bank at an interest rate of 10% to ensure the availability of funds. Borrowing transactions are to occur only at the end of months in which the budgeted cash balance would otherwise fall short of the $10,000 minimum balance. Repayments of principal and interest are to occur at the end of the earliest month in which sufficient funds are expected to be available for repayment. (Use 360 days year for calculations.) Following are the budgeted income statements for the second quarter of 2019 for SeaTech Inc.: April May June Sales $ 112,000 $ 136,000 $ 152,000 Cost of goods sold* 76,800 91,200 100,800 Gross profit $ 35,200 $ 44,800 $ 51,200 Operating expenses† 17,600 20,000 21,600…The controller of Big River Inc. wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending May 31, 2024 April 30, 2024, cash balance Dividends were declared on April 15 Cash expenditures to be paid in May for operating expenses Depreciation expense Cash collections to be received Merchandise purchases to be paid in cash Equipment to be purchased for cash Big River wishes to maintain a minimum cash balance of $122,000 40,000 81,600 12,200 194,000 120,400 45,800 62,000 "Dividends are payable to shareholders of record on declaration date, 30 days after declaration Required: 1. Prepare a cash budget for the month ended May 31, 2024, indicating how much, if anything. Big River will need to borrow to meet its minimum cash requirement. (Leave no cells blank - be certain to enter "0" wherever required.)
- Please see the remainder of the information below to assist: (xii) The cash balance on March 31, 2024, is expected to be an overdraft of $98,000.Required:(a) The business needs to have a sense of its future cashflows and therefore requires the preparation of the following:▪ A schedule of budgeted cash collections for trade receivables for each of the months January to March.▪ A schedule of expected cash disbursements for accounts payable for each of the months January to March.The controller of Optimum wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2021: June 30, 2021, cash balance Dividends were declared on June 15* $130,000 44, 000 83,600 13,000 198,000 122,400 47,000 70, 000 Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received Merchandise purchases to be paid in cash Equipment to be purchased for cash Optimum wishes to maintain a minimum cash balance of *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank - enter "O" wherever required).The controller of Arrowroot Company wishes to improve the company’s control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2021: June 30, 2021, cash balance $ 122,000 Dividends were declared on June 15* 40,000 Cash expenditures to be paid in July for operating expenses 81,600 Depreciation expense 12,200 Cash collections to be received 194,000 Merchandise purchases to be paid in cash 120,400 Equipment to be purchased for cash 45,800 Arrowroot Company wishes to maintain a minimum cash balance of 62,000 *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ended July 31, 2021, indicating how much, if anything, Arrowroot will need to borrow to meet its minimum cash requirement. Leave no cells blank - be certain to enter "0" wherever required
- Ramon Manufacturing has a cash balance of P8,000 on August 1 of the current year.The company’s controller forecast the following cash receipts and cash disbursementsfor the upcoming two months of activity.Receipts PaymentsAugust P 45,000 P 57,000September 66,000 56,000Management desires to maintain a minimum cash balance of P8,000 at all times. If necessary, additional financing can be obtained in P1,000 multiples at a 12% interest rate. All borrowings are made at the beginning of the month; debt retirement, on the otherhand, occurs at the end of the month. Interest is paid at the time of repaying loan principal and is computed on the portion of debt repaid. 1. Determine the ending cash balance in August both before and after anynecessary financing or debt retirement.The controller of Optimum wishes to improve the company’s control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2021: June 30, 2021, cash balance $ 130,000 Dividends were declared on June 15* 44,000 Cash expenditures to be paid in July for operating expenses 83,600 Depreciation expense 13,000 Cash collections to be received 198,000 Merchandise purchases to be paid in cash 122,400 Equipment to be purchased for cash 47,000 Optimum wishes to maintain a minimum cash balance of 70,000 *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank - enter "0" wherever required). 2. Which of the following statement is true? a) The income…The controller of Optimum wishes to improve the company’s control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2021: June 30, 2021, cash balance $ 130,000 Dividends were declared on June 15* 44,000 Cash expenditures to be paid in July for operating expenses 83,600 Depreciation expense 13,000 Cash collections to be received 198,000 Merchandise purchases to be paid in cash 122,400 Equipment to be purchased for cash 47,000 Optimum wishes to maintain a minimum cash balance of 70,000 *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank - enter "0" wherever required). The controller of Optimum wishes to improve the company’s control…
- QUESTION 2 REQUIRED Prepare the Cash Budget for January, February and March 2021. (Provide separate monetary columns for each month.) INFORMATION Ricoh Limited is planning the business activities of Project Haz for the first three months of 2021. Some of the items in the Statement of Financial Position as at 31 December 2020 are expected to be as fallows: Current assets Debtors/Accounts receivable R 600 000 20 000 Bank Current liabilities Creditors (for material purchases) 100 000 Additional information The following forecasts have been made by Ricoh Limited for the first three months of 2021: 1. Direct materials The costs of production include the following: R26 per unit Direct labour R22 per unit 2. The sales manager anticipates the following sales volumes at a constant price of R160 per unit: January February March 2 300 units 2 500 units 3 400 units All the sales are on credit and debtors pay their accounts in the month after the sale. 3. The purchases manager expects to purchase…Q1. Below are the budgeted revenue and expenses for a restaurant for the year 2022. RM (*000) 71,250 Revenue Sales RM ('000) 28,500 4,200 17,100 Expenses Cost of supplies Salaries Wages Depreciation Repair and Maintenance Advertisement Laundry Interest on Loan Miscellaneous expenses Utilities 900 3,000 1,500 200 2,200 2,300 650 Below are the additional information given to you for further analysis: The expected pattern of sales for the year 2022 are as follows and it is the company policy to analyse based on quarters. Percentage of sales 24 Quarter 1 2 20 3 24 4 32 75% of the sales are on a cash basis and the balance will be received in the next quarter. The costs of supplies vary directly with sales and a constant stock value of supplies are kept. 20% of purchases of the food and drinks are for cash and the balance are paid during next quarter. 80% of the repairs and maintenance item is for a major redecoration to be paid in the third quarter. Wages, which are variable with sales, are…Tune Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for April 2024 and budgeted balance sheet at April 30, 2024. The March 31, 2024, balance sheet follows: As Tune Printing Supply's controller, you have assembled the following additional information: a. April dividends of $6,000 were declared and paid. b. April capital expenditures of $16,200 budgeted for cash purchase of equipment. c. April depreciation expense, $500. d. Cost of goods sold, 45% of sales. e. Desired ending inventory for April is $22,800. f. April selling and administrative expenses include salaries of $32,000, 30% of which will be paid in cash and the remainder paid next month. g. Additional April selling and administrative expenses also include miscellaneous expenses of 15% of sales, all paid in April. h. April budgeted sales, $86,000, 50% collected in April and 50% in May. i. April cash payments of…
