{"id":6811,"date":"2021-10-10T21:50:22","date_gmt":"2021-10-10T21:50:22","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/the-treasurer-of-unisyms-company-has-accumulated-the-following-budget\/"},"modified":"2021-10-10T21:50:22","modified_gmt":"2021-10-10T21:50:22","slug":"the-treasurer-of-unisyms-company-has-accumulated-the-following-budget","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/the-treasurer-of-unisyms-company-has-accumulated-the-following-budget\/","title":{"rendered":"The treasurer of unisyms company has accumulated the following budget"},"content":{"rendered":"
\n

I already have the question completed to my best ability, but am just looking for someone to double check it.<\/p>\n

Here’s the question again in case it didn’t go through on the little bar above, and my answer is posted below:<\/p>\n

\u00a0<\/p>\n

The treasurer of Unisyms Company has accumulated the following budget information for the first two months of the coming year:<\/span><\/p>\n

\u00a0<\/p>\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\n

March<\/span><\/p>\n<\/td>\n

\n

April<\/span><\/p>\n<\/td>\n<\/tr>\n

Sales.<\/td>\n\n

$450,000<\/p>\n<\/td>\n

\n

$520,000<\/p>\n<\/td>\n<\/tr>\n

Manufacturing costs<\/td>\n\n

\u00a0290,000<\/p>\n<\/td>\n

\n

\u00a0 350,000<\/p>\n<\/td>\n<\/tr>\n

Selling and administrative<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0 expenses<\/td>\n\n

\u00a0\u00a0 41,400<\/p>\n<\/td>\n

\n

\u00a0\u00a046,400<\/p>\n<\/td>\n<\/tr>\n

Capital additions<\/td>\n\n

\u00a0250,000<\/p>\n<\/td>\n

\n

—<\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The company expects to sell about 35% of its merchandise for cash. Of sales on account, 80% are expected to be collected in full in the month of the sale and the remainder in the month following the sale. One-fourth of the manufacturing costs are expected to be paid in the month in which they are incurred and the other three-fourths in the following month. Depreciation, insurance, and property taxes represent $6,400 of the probable monthly selling and administrative expenses. Insurance is paid in February and a $40,000 installment on income taxes is expected to be paid in April. Of the remainder of the selling and administrative expenses, one-half are expected to be paid in the month in which they are incurred and the balance in the following month. Capital additions of $250,000 are expected to be paid in March.<\/span><\/p>\n

Current assets as of March 1 are composed of cash of $45,000 and accounts receivable of $51,000. Current liabilities as of March 1 are composed of accounts payable of $121,500 ($102,000 for materials purchases and $19,500 for operating expenses). Management desires to maintain a minimum cash balance of $20,000.<\/span><\/p>\n

Prepare a monthly cash budget for March and April.<\/span><\/p>\n

—————————————————————————————-<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Unisyms Company<\/td>\n\u00a0<\/td>\nUnisyms Company<\/td>\n<\/tr>\n
Schedule of Collections from Sales<\/td>\n\u00a0<\/td>\nCash Budget<\/td>\n<\/tr>\n
For Two Months Ending April 30<\/td>\n\u00a0<\/td>\nFor Two Months Ending April 30<\/td>\n<\/tr>\n
\u00a0<\/td>\nMarch<\/td>\nApril<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nMarch<\/td>\nApril<\/td>\n<\/tr>\n
Cash Sales:<\/td>\n$157,500<\/td>\n$182,000<\/td>\n\u00a0<\/td>\nEstimated Cash receipts from:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0 Cash Sales<\/td>\n$157,500<\/td>\n$182,000<\/td>\n<\/tr>\n
Sales on Account:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0 Collections of accounts receivable<\/td>\n$285,000<\/td>\n$328,900<\/td>\n<\/tr>\n
\u00a0\u00a0\u00a0\u00a0 Collection from month prior sales<\/td>\n$51,000<\/td>\n$58,500<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Total cash receipts<\/td>\n$442,500<\/td>\n$510,900<\/td>\n<\/tr>\n
\u00a0\u00a0\u00a0\u00a0 Collection from current month’s sales<\/td>\n$234,000<\/td>\n$270,400<\/td>\n\u00a0<\/td>\nEstimated cash payments for:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Sales on Account<\/td>\n$285,000<\/td>\n$328,900<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0 Manufacturing costs<\/td>\n$174,500<\/td>\n$305,000<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nSelling and administrative expenses<\/td>\n$37,000<\/td>\n$37,500<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nCapital additions<\/td>\n$250,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Unisyms Company<\/td>\n\u00a0<\/td>\nNote Payable<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Schedule of Payments for Manufacturing Costs<\/td>\n\u00a0<\/td>\nDividends<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
For Two Months Ending April 30<\/td>\n\u00a0<\/td>\nIncome taxes<\/td>\n\u00a0<\/td>\n$40,000<\/td>\n<\/tr>\n
\u00a0<\/td>\nMarch<\/td>\nApril<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0 Total cash payments<\/td>\n$461,500<\/td>\n$382,500<\/td>\n<\/tr>\n
Payments of prior month’s manufacturing costs<\/td>\n$102,000<\/td>\n$217,500<\/td>\n\u00a0<\/td>\nCash increase (decrease)<\/td>\n($19,000)<\/span><\/td>\n$128,400<\/td>\n<\/tr>\n
Payments of current month’s manufacturing costs<\/td>\n$72,500<\/td>\n$87,500<\/td>\n\u00a0<\/td>\nCash balance at beginning of month<\/td>\n$45,000<\/td>\n$26,000<\/td>\n<\/tr>\n
Total Payments<\/td>\n$174,500<\/td>\n$305,000<\/td>\n\u00a0<\/td>\nCash balance at end of month<\/td>\n$26,000<\/td>\n$154,400<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nMinimum cash balance<\/td>\n$20,000<\/td>\n$20,000<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nExcess (deficiency)<\/td>\n$6,000<\/td>\n$134,400<\/td>\n<\/tr>\n
Unisyms Company<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Schedule of Payments for Selling & Admin Expenses<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
For Two Months Ending April 30<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nMarch<\/td>\nApril<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Payments of prior month’s manufacturing costs<\/td>\n$19,500<\/td>\n$17,500<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Payments of current month’s manufacturing costs<\/td>\n$17,500<\/td>\n$20,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Payments<\/td>\n$37,000<\/td>\n$37,500<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nMarch<\/td>\nApril<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Sales:<\/td>\n$450,000<\/td>\n$520,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Manufacturing Costs:<\/td>\n$290,000<\/td>\n$350,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Selling & Admin Expenses:<\/td>\n$41,400<\/td>\n$46,400<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Capital Additions:<\/td>\n$250,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Sales on Account:<\/td>\n$292,500<\/td>\n$338,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
March 1 Current Assets:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash:<\/td>\n$45,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accounts Receivable:<\/td>\n$51,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
March 1 Current Liabililities:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Accounts Payable:<\/td>\n$121,500<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Materials Purchased:<\/td>\n$102,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Operating Expenses:<\/td>\n$19,500<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

I already have the question completed to my best ability, but am just looking for someone to double check it. Here’s the question again in case it didn’t go through on the little bar above, and my answer is posted below: \u00a0 The treasurer of Unisyms Company has accumulated the following budget information for the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-6811","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=6811"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6811\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=6811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=6811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=6811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}