Systems equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 17,300 nozzles in stock, although the latest estimate for August production indicates a requirement for only 16,000 nozzles. Total uses of the nozzle are expected to be 15,700 in September and 16,540 in October. Nozzles are purchased at a wholesale price of $13. Eliot pays 25 percent of the purchase price in cas n the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 26,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September.

Systems equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 17,300 nozzles in stock, although the latest estimate for August production indicates a requirement for only 16,000 nozzles. Total uses of the nozzle are expected to be 15,700 in September and 16,540 in October. Nozzles are purchased at a wholesale price of $13. Eliot pays 25 percent of the purchase price in cas n the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 26,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 17,100 nozzles in stock, although the latest estimate for August production indicates a requirement for only 15,600 nozzles. Total uses of the nozzle are expected to be 15,300 in September and 16,140 in October. Nozzles are purchased at a wholesale price of $11. Eliot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 24,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September. Complete this question by entering your…
Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 17,100 nozzles in stock, although the latest estimate for August production indicates a requirement for only 15,600 nozzles. Total uses of the nozzle are expected to be 15,300 in September and 16,140 in October. Nozzles are purchased at a wholesale price of $11. Eliot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 24,000 parts in July. Estimate purchases of the nozzle (in units) for August and September. Estimate the cash disbursements for nozzles in August and September.
Exquisite Bedding Ltd. The company uses a rolling budgetary control system and is in the process of preparing the budget for the four months’ period from September to December 2020. During a preliminary review, you established that the company intends to sell each bed produced for $219 to Ultimate Care Ltd. in addition to individual customers on the same credit terms. Exquisite Bedding Ltd secured a cash loan of $120,000 (from Barclays Bank) that was secured on the land and buildings at an interest rate of 7 ½ % and this is due to be received in November 2020. Also, machinery costing $112,000 will be received in November and paid for in December 2020. You have been provided with the following budgeted balance sheet information for Exquisite Bedding Ltd as at September 1, 2020 well as estimates and other operating data (PLEASE SEE BALANCE SHEET ATTACHED AS PHOTO) Other information: Stock valuation was done using FIFO method and the closing stock of raw materials is for 100 units and…
Adams Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. Required October sales are estimated to be $200,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 25 percent per month. Prepare a sales budget. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts. The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month’s cost of goods sold. However, ending inventory of December is expected to be $12,000. Assume that all purchases are made…
Exquisite Bedding Ltd. The company uses a rolling budgetary control system and is in the process of preparing the budget for the four months’ period from September to December 2020. During a preliminary review, you established that the company intends to sell each bed produced for $219 to Ultimate Care Ltd. in addition to individual customers on the same credit terms. Exquisite Bedding Ltd secured a cash loan of $120,000 (from Barclays Bank) that was secured on the land and buildings at an interest rate of 7 ½ % and this is due to be received in November 2020. Also, machinery costing $112,000 will be received in November and paid for in December 2020. You have been provided with the following budgeted balance sheet information for Exquisite Bedding Ltd as at September 1, 2020 well as estimates and other operating data (PLEASE SEE BALANCE SHEET ATTACHED AS PHOTO) Other information: Stock valuation was done using FIFO method and the closing stock of raw materials is for 100 units and…
Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. Required a. October sales are estimated to be $340,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget. b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts. c. The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $12,900. Assume that all purchases are made…
Exquisite Bedding Ltd. The company uses a rolling budgetary control system and is in the process of preparing the budget for the four months’ period from September to December 2020. During a preliminary review, you established that the company intends to sell each bed produced for $219 to Ultimate Care Ltd. in addition to individual customers on the same credit terms. Exquisite Bedding Ltd secured a cash loan of $120,000 (from Barclays Bank) that was secured on the land and buildings at an interest rate of 7 ½ % and this is due to be received in November 2020. Also, machinery costing $112,000 will be received in November and paid for in December 2020. You have been provided with the following budgeted balance sheet information for Exquisite Bedding Ltd as at September 1, 2020 well as estimates and other operating data (PLEASE SEE BALANCE SHEET ATTACHED AS PHOTO) Other information: Stock valuation was done using FIFO method and the closing stock of raw materials is for 100 units and…
Dear Bartleby, Could you please assist with the following schedule of cash payments, thank you. e. Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of 2019. Soprano Co. is in the process of preparing the second quarter budget for 2019, and the following data have been assembled: The company sells a single product at a selling price of $40 per unit. The estimated sales volume for the next six months is as follows: March 6,000 units June 8,000 units April 7,000 units July 9,000 units May 10,000 units August 6,000 units All sales are on account. The company's collection experience has been that 40% of a month's sales are collected in the month of sale, 55% are collected in the month following the sale, and 5% are uncollectible. It is expected that the net realizable value of accounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $132,000 on March 31, 2019.…
Anderson Labs performs a specialty lab test for local companies for $50 per test. For the upcoming quarter, Anderson Labs is projecting the following sales: The budgeted cost of performing each test is $24. Operating expenses are projected to be $57,000 in January, $52,000 in February, and $61,000 in March. Anderson Labs is subject to a corporate tax rate of 30%. Requirement Prepare a budgeted income statement for the first quarter, with a column for each month and for the quarter. January February March Number of lab tests 5,900 4,700 5,200 ..... Prepare the budgeted income statement by first calculating the operating income, then calculate the net income. Anderson Labs Budgeted Income Statement For the Quarter Ended March 31 January February March Quarter Sales Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Income tax expense Net income .....
Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow. Sales are budgeted at $300,000 for November, $320,000 for December, and $310,000 for January. Collections are expected to be 65% in the month of sale, 30% in the month following the sale, and 5% uncollectible. Beginning November accounts receivable is $93,000. The cost of goods sold is 75% of sales. The company purchases 70% of its compressed gases in the month prior to the month of sale and 30% in the month of sale. Payments for purchases are 40% in the month of purchase and 60% in the following month. Other monthly expenses to be paid in cash are $22,900. The Monthly depreciation is $21,000. The company has a desired ending cash balance of at least $35,000. It has an available line-of-credit for borrowing, if necessary, at 12% interest per annum. Assume that after the company acquired land and paid dividends in November, such that the beginning…
Tim Tam Inc., a merchandising company, is considering opening a new distribution center on July 1, 20Y1. Budgeted sales for July, August and September are estimated to be $200,000, $300,000, and $450,000, respectively. The company expects to sell 30% of its merchandise for cash and the remainder on account. Of the sales on account, 60% are expected to be collected in the month of the sale and 40% in the month following the sale. Determine the expected cash collection in September. Group of answer choices $90,000 $408,000 $356,000 $126,000
Painter's Hardware purchased 8,200 gallons of paint in March. The store had 3,100 gallons on hand at the beginning of March, and expects to have 2,600 gallons on hand at the end of March. What is the budgeted number of gallons to be sold during March? Round your final answer to the nearest unit. Do not include $ sign or commas in your final answer.