Direct Equipment Projected Revenues & Expenses June July August September October November Sales 85,000 86,275 87,569 88,883 90,216 91,569 Cost of Goods Sold 52,700 53,491 54,293 55,107 55,934 56,773 Gross Profit 32,300 32,785 33,276 33,775 34,282 34,796 Admin & Selling Costs 21,000 21,000 21,000 21,000 21,000 21,000 Net Income before Taxes 11,300 11,785 12,276 12,775 13,282 13,796 Information related to cash receipts 1) Cash sales are 80% and credit sales are 20% per month 2) Collections on credit sales are 60% in the month of sale and 40% in the following month Information related to purchases of direct materials 1) Purchases of Direct Materials are 32% of Sales 2) Direct material purchases are paid 50% in current month and 50% in following month 3) Ending Inventory needs to be 30% of the following month's Direct Materials Cost of Goods Sold 4) Accounts payable for purchases of direct materials June 30 was $13,600 Information related to cash 1) Beginning Cash Balance June 30 was $175,000 2) Admin & Selling Costs include $1,000 depreciation expense 3) Admin & Sales salaries are $4,350 per month (included in total Admin and Selling Costs) 4) Direct wages are 30% of sales 5) Wages are paid 80% in current month and 20% the following month 6) A dividend to the owners of 10% of the ending quarter's Net Income (after tax) is paid in Jan, Apr, Jul, Oct 7) April - June Net Income before taxes was $50,000 8) Quarterly estimated taxes are paid the month following the end of the quarter 9) Effective tax rate is 23%. 10) Direct Equipment operates on a calendar year basis Required - Prepare the following budgets for July - October 1) Cash Receipts 2) Production (direct material) 3) Cash disbursements for purchases of Direct Materials (use results of Production budget) 4) Cash

Direct Equipment Projected Revenues & Expenses June July August September October November Sales 85,000 86,275 87,569 88,883 90,216 91,569 Cost of Goods Sold 52,700 53,491 54,293 55,107 55,934 56,773...

Direct Equipment
Projected Revenues & Expenses

	June	July	August	September	October	November
Sales	85,000	86,275	87,569	88,883	90,216	91,569
Cost of Goods Sold	52,700	53,491	54,293	55,107	55,934	56,773
Gross Profit	32,300	32,785	33,276	33,775	34,282	34,796
Admin & Selling Costs	21,000	21,000	21,000	21,000	21,000	21,000
Net Income before Taxes	11,300	11,785	12,276	12,775	13,282	13,796

Information related to cash receipts
1) Cash sales are 80% and credit sales are 20% per month
2) Collections on credit sales are 60% in the month of sale and 40% in the following month

Information related to purchases of direct materials
1) Purchases of Direct Materials are 32% of Sales
2) Direct material purchases are paid 50% in current month and 50% in following month
3) Ending Inventory needs to be 30% of the following month's Direct Materials Cost of Goods Sold
4) Accounts payable for purchases of direct materials June 30 was $13,600

Information related to cash
1) Beginning Cash Balance June 30 was $175,000
2) Admin & Selling Costs include $1,000 depreciation expense
3) Admin & Sales salaries are $4,350 per month (included in total Admin and Selling Costs)
4) Direct wages are 30% of sales
5) Wages are paid 80% in current month and 20% the following month
6) A dividend to the owners of 10% of the ending quarter's Net Income (after tax) is paid in Jan, Apr, Jul, Oct
7) April - June Net Income before taxes was $50,000
8) Quarterly estimated taxes are paid the month following the end of the quarter
9) Effective tax rate is 23%.
10) Direct Equipment operates on a calendar year basis

Required - Prepare the following budgets for July - October
1) Cash Receipts
2) Production (direct material)
3) Cash disbursements for purchases of Direct Materials (use results of Production budget)
4) Cash

Answered 1 days AfterMay 25, 2021

Answer To: Direct Equipment Projected Revenues & Expenses June July August September October November Sales...

Khushboo answered on May 27 2021

137 Votes

Sheet1
    a    Cash receipt
        Particulars    June    July    August    September    October
        Sales    85,000    86,275    87,569    88,883    90,216
        Credit sales    17,000    17,255    17,514    17,777    18,043
        Cash sales    68,000    69,020    70,055    71,106    72,173
        60% collection in same month        10,353    10,508    10,666    10,826
        40% collection in next month        6,800    6,902    7,006    7,111
        Total collection from customers        86,173    87,465    88,778    90,109
    b    Production/purchase budget
        Particulars    June    July    August    September    October    November
        Sales    85,000    86,275    87,569    88,883    90,216    91,569
        Cost of goods sold    27,200    27,608    28,022    28,443    28,869    29,302
        Add:...

SOLUTION.PDF

Direct Equipment Projected Revenues & Expenses June July August September October November Sales 85,000 86,275 87,569 88,883 90,216 91,569 Cost of Goods Sold 52,700 53,491 54,293 55,107 55,934 56,773...

Answer To: Direct Equipment Projected Revenues & Expenses June July August September October November Sales...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment