70.2K

Verified Solution

Link Copied!

QUESTION 33 Devon, CPA & Associates is a small, local firm in Cresent, Tennessee. The owner, Ryan Devon, is currently in the process of preparing the budget for the first two quarters in 2019. Ryan had an emergency meeting with a client and asked you to work on the cash budget while he is away. The master budget had been completed except for the cash budget Ryan left the information below for you: .Cash balance, January 1, 2019 . Required minimum cash balance desired Tax payments on estimated taxes (2nd Salaries per quarter Administrative expenses (includes $2,460 depreciation)-1st Administrative expenses (includes $2,460 depreciation)-2nd Qtr. Overhead costs-1t Qtr S 36,900 35,000 quarter only) 5,000 172,200 Qtr. 61.500 86,100 92,250 Overhead costs-2nd Qtr. . Collections from clients-1 Qtr Collections from clients-2nd Qtr Purchase of computer equipment-1t Qtr Sale of obsolete office equipment-2nd Qtr Investment income Mortgage Note payable (monthly) 123.000 282,900 30% greater than 15t Quarter $61,500 14,750 5,000 738 REQUIRED SHOW ALL COMPUTATIONS to earn full credit 1. Compute the following for the 1st Qtr a. What is the beginning cash balance? b. List ALL cash receipts and compute Total cash Receipts c Determine Total Available cash d List ALL disbursement and compute Total Cash Disbursements e. Determine the Excess (deficiency) of available cash f is there a need for financing? Explain g is there an opportunity to pay back previous months' borrowing? Explain h. Determine the Ending Cash balance 2. Compute the following for the 2nd Qtr Click Save amd Submit to save and submit. Click Save All Answers to save all answers. Save All A REQUIRED SHOW ALL COMPUTATIONS to earn full credit. 1. Compute the following for the 1st Qtr a What is the beginning cash balance? b. List ALL cash receipts and compute Total cash Receipts c Determine Total Available cash d. List ALL disbursement and compute Total Cash Disbursements e Determine the Excess (deficiency) of available cash E Is there a need for financing? Explain g Is there an opportunity to pay back previous months borrowing? Explain h. Determine the Ending Cash balance. 2 Compute the following for the 2nd Qtr a What is the beginning cash balance? b. List ALL cash receipts and compute Total cash Receipts c Determine Total Available cash d List ALL disbursement and compute Total Cash Disbursements e Determine the Excess (deficiency) of available cash f Is there a need for financing?Explain g is there an opportunity to pay back previous months borrowing? Explain h. Determine the Ending Cash balance

Answer & Explanation Solved by verified expert

See Answer