Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 1 the following data relate to bookshop l

Problem 1 The following data relate to Bookshop Ltd: The financial manager has made...

80.2K

Verified Solution

Question

Accounting

Problem 1
The following data relate to Bookshop Ltd:
The financial manager has made the following sales forecasts
for the first five months of the coming year, commencing from 1 April 2012:
Month Sales($)
April 40,000
May 45,000
June ,55,000
July 60,000
Auqust ,50,000
Other data:
(i) Debtors' and creditors' balance at the beginning of the year are $30,000 and $14,000, The
balance of other relevant assets and liabilities are:
(ii)40% sales are on cash basis. Credit sales are collected in the month following the sale.
(iii) Cost of sales in 60 per cent on sales.
(iv) The only other variable cost is a 5% commission to sales agents. The Sales Commission is paid in
a month after it is earned. respectively
(iv) Inventory (stock) is kept equal to sales requirements for the next two month budgeted sales
(v) Trade creditors are paid in the following month after purchases.
(vii) Fixed costs are $5,000 per month including $2,000 depreciation.
You are required to prepare a cash budget for the months of April, May and June 2012, respectively.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider the titration of 50.0 mL of 0.0500 M C2H5NH2 (a weak base; Kb = 0.000640) with...

Chemistry
Q

1. Explain why the graphs of tangent and cotangent have vertical asymptotes 2. Explain why the graphs...

Advance Math
Q

During the first month of its current fiscal year, Green Co. incurred repair costs of $24,000...

Accounting
Q

A circle with center O has a diameter of 26 cm A chord PQ is...

Geometry
Q

5 A graphing calculator is recommended If a rock is thrown upward on the planet...

Calculus
Q

uate the trigonometric function at the quadrantal angle or state that the expression is undefine...

Calculus
Q

Write the following expression as a sum and or difference of logarithms Express powers as...

Algebra
Q

Mad City Products Inc (MCP), developed standard costs for direct material and direct labor In...

Accounting
Q

The following transactions occurred during March 2024 for the Right Corporation. The company operates a...

Accounting
Q

The following information was available for the year ended December 31, 2022: Required: a. Calculate...

Accounting
Q

An Internet company earned $6.80 per share and paid dividends of $5.60 per share. The...

Accounting
Q

Please help me with week 2 of Jo and Mo's Icy Delights Accounting Practice Set,...

Accounting