Title: Exercise 22-12
QA_Ori:
JASPER COMPANY
Cash Receipts Budget
For April, May, and June
April May June
Sales $525,000 $535,000 $560,000
Less ending accts. receivable (70%) 367,500 374,500 392,000
Title: Exercise 22-13
QA_Ori:
KARIM CORP.
Cash Budget
For July, August, and September
July August Sept.
Beginning cash balance $ 8,400 $ 8,000 $ 8,000
Cash receipts 20,000 26,000 40,000
Total cash available 28,400 34,000 48,000
* Rounded to nearest whole dollar.
Title: Exercise 22-14
QA_Ori:
FOYERT CORP.
Cash Budget
For October, November, and December
Oct. Nov. Dec.
Beginning cash balance* $ 30,000 $ 30,000 $ 30,000
Cash receipts 110,000 80,000 100,000
Title: Exercise 22-15
QA_Ori:
CASTOR, INC.
Cash Budget
For April, May, and June
April May June
Beginning cash balance* $12,000 $12,000 $12,279
Cash receipts** 28,000 36,000 32,000
Total cash available 40,000 48,000 44,279
Cash disbursements
*April’s beginning cash balance includes an outstanding loan payable of $2,000.
**Per cash receipts budget on next page
CASTOR, INC.
Cash Receipts Budget
For April, May, and June
April May June
Title: Exercise 22-16
QA_Ori:
(1)
KELSEY
Cash Receipts Budget
For July, August, and September
July August Sept.
Sales $64,000 $80,000 $48,000
Less ending accts. receivable (80%) 51,200 64,000 38,400
(2)
KELSEY
Cash Budget
For July, August, and September
July August Sept.
Beginning cash balance* $15,000 $15,000 $25,504
Cash receipts (from part 1) 57,800 67,200 73,600
*July’s beginning cash balance includes a loan payable of $5,000.
** Rounded to the nearest dollar. Answers vary slightly if rounded to the nearest cent.
Title: Exercise 22-17
QA_Ori:
ZETROV COMPANY
Budgeted Balance Sheet
As of March 31
ASSETS
Cash $ 50,000
Accounts receivable ($140,000 x 70%) 98,000
Merchandise inventory (600 units x $35) 21,000
Supporting calculations
(1) Accumulated depreciation
(2) Retained earnings
Title: Exercise 22-18
QA_Ori:
FORTUNE, INC.
Budgeted Income Statement
For Quarter Ended March 31
Sales (note 1) $3,750,000
Cost of goods sold (note 2) 2,100,000
Gross profit 1,650,000
Operating expenses
Commissions expense (8% of sales) $300,000
Supporting calculations
(1) Sales
(2) Cost of goods sold
(3) Income tax expense
Pre-tax income $ 391,125
Title: Exercise 22-19
QA_Ori:
MANNER COMPANY
Direct Labor Budget
For July, August, and September
July August Sept.
Budgeted production (units) 620 680 540
Title: Exercise 22-20
QA_Ori:
HOSPITABLE CO.
Production Budget
For April, May, and June
April May June
Next month’s budgeted sales (units) 580 540 620
Ratio of inventory to future sales x 25% x 25% x 25%
Title: Exercise 22-21
QA_Ori:
HOSPITABLE CO.
Direct Materials Budget
For April, May, and June
April May June
Budgeted production (units)* 455 570 560
Materials requirements per unit x 5 x 5 x 5
* From Exercise 22-20
** 30% of next month’s materials needed for production.
July’s materials needed for production (2,700 pounds = 540 units x 5) is given.
Title: Exercise 22-22
QA_Ori:
Title: Exercise 22-23
QA_Ori:
Potential negative outcomes from participatory budgeting include the potential for
Title: Exercise 22-24
QA_Ori:
RENDER CO. CPA
Activity-Based Budget
For Year Ending December 31, 2013
Budgeted
Hours
Budgeted
Price/hour
Budgeted
Cost
Data-entry 2,200 $10 $ 22,000
Title: Exercise 22-25
QA_Ori:
RIDA INC.
Direct Materials Budget
Second Quarter
Units to be produced 240,000
Materials requirement per unit x .60
*(52,500 x 0.60) x 50%
**144,000 x 50%
Title: Exercise 22-26
QA_Ori:
1.
RIDA INC.
Direct Labor Budget
Second Quarter
Units to be produced 240,000
2.
RIDA INC.
Factory Overhead Budget
Second Quarter
Total labor hours needed 960,000
Title: Exercise 22-27
QA_Ori:
RAD CO.
Direct Materials Budget
For April, May, and June
April May June
Budget production (units) 442 570 544
Materials requirements per unit x 5 x 5 x 5
*30% of next month’s materials needed for production. July’s materials needed for
production equals 2,700 pounds (540 units x 5).
Title: Exercise 22-28
QA_Ori:
1.
RAD CO.
Direct Labor Budget
For April, May, and June
April May June
Budget production (units) 442 570 544
2.
RAD CO.
Factory Overhead Budget
For April, May, and June
April May June
Total labor hours needed 221 285 272
Title: Problem 22-1A
QA_Ori:
Part 1
KEGGLER’S SUPPLY
Merchandise Purchases Budgets
For March, April, and May
March April May
FOOTWEAR
Budgeted sales for next month 25,000 32,000 35,000
SPORTS EQUIPMENT
Budgeted sales for next month 90,000 95,000 90,000
Ratio of ending inventory to future sales 30% 30% 30%
APPAREL
Budgeted sales for next month 38,000 37,000 25,000
Part 2. Analysis Component
The factor that causes the first month’s purchases to be so much smaller is the excess
inventory that accumulated just prior to the budgeting period. For example, 20,000 units
of footwear are in March’s beginning inventory; however, March sales are budgeted at
There may have been some potentially disruptive factor (such as a strike, bad weather,
or political uncertainty) that would have temporarily interrupted the smooth delivery of
A supplier may have recently located a new distribution facility nearby, with the result
Title: Problem 22-2A
QA_Ori:
ONEIDA COMPANY
Cash Budget
For September, October, and November
September October November
Beginning balance $ 5,000 $ 99,250 $ 69,500
Cash receipts
Collection on accounts receivable* 159,250 249,250 338,100
*** Interest at 12% on $100,000 for 3 months is $3,000.
Supporting schedules
Collections of credit sales* August Septembe
r
October Novembe
r
Aug. sales ($215,000)—[25%: 45%: 20%:
9%]
$
53,750
$ 96,750 $
43,000
$ 19,350
53,750
50
Payments on credit purchases** August Septembe
r
October Novembe
r
Aug. purchases ($125,000)—(0%: 80%:
20%)
$
0
$100,000 $
25,000
$ –
0
00