MF Learning activity 11_ Budget Monitor_Due Diligence 2024

BTB (Pty) Limited is a distributor of PPE to rural health clinics in KZN. Turnover has been good and running expenses are under control, however the owner of the business, Mr Sam Jonas, is concerned that upcoming legal expenses and necessary vehicle repairs may negatively affect the business’ cash flow. He has hired you to prepare a cash budget for the next four months, from July to October 2022. All sales are made on credit and collected as follows: • 40% in the month of the sale; • 35% in the month after the sale; • 15% in the second month after the sale; • 10% will be written off as bad debts. All purchases are made on credit and paid for as follows: • 60% in the month of the purchase and  • 40% in the month after the purchase.   Total administration expenses (rent, rates stationary etc) will be R14 000 per month. The legal costs will be R34 000 in each of July and August 2022. Major repairs and maintenance to vehicles will cost R45 000 and this amount will be paid in three equal…

BTB (Pty) Limited is a distributor of PPE to rural health clinics in KZN. Turnover has been good and running expenses are under control, however the owner of the business, Mr Sam Jonas, is concerned that upcoming legal expenses and necessary vehicle repairs may negatively affect the business’ cash flow. He has hired you to prepare a cash budget for the next four months, from July to October 2022. All sales are made on credit and collected as follows: • 40% in the month of the sale; • 35% in the month after the sale; • 15% in the second month after the sale; • 10% will be written off as bad debts. All purchases are made on credit and paid for as follows: • 60% in the month of the purchase and  • 40% in the month after the purchase.   Total administration expenses (rent, rates stationary etc) will be R14 000 per month. The legal costs will be R34 000 in each of July and August 2022. Major repairs and maintenance to vehicles will cost R45 000 and this amount will be paid in three equal…

BTB (Pty) Limited is a distributor of PPE to rural health clinics in KZN. Turnover has been good and running expenses are under control, however the owner of the business, Mr Sam Jonas, is concerned that upcoming legal expenses and necessary vehicle repairs may negatively affect the business’ cash flow. He has hired you to prepare a cash budget for the next four months, from July to October 2022. All sales are made on credit and collected as follows: • 40% in the month of the sale; • 35% in the month after the sale; • 15% in the second month after the sale; • 10% will be written off as bad debts. All purchases are made on credit and paid for as follows: • 60% in the month of the purchase and  • 40% in the month after the purchase.   Total administration expenses (rent, rates stationary etc) will be R14 000 per month. The legal costs will be R34 000 in each of July and August 2022. Major repairs and maintenance to vehicles will cost R45 000 and this amount will be paid in three equal…

BTB (Pty) Limited is a distributor of PPE to rural health clinics in KZN. Turnover has been good and running expenses are under control, however the owner of the business, Mr Sam Jonas, is concerned that upcoming legal expenses and necessary vehicle repairs may negatively affect the business’ cash flow. He has hired you to prepare a cash budget for the next four months, from July to October 2022. All sales are made on credit and collected as follows: • 40% in the month of the sale; • 35% in the month after the sale; • 15% in the second month after the sale; • 10% will be written off as bad debts. All purchases are made on credit and paid for as follows: • 60% in the month of the purchase and  • 40% in the month after the purchase.   Total administration expenses (rent, rates stationary etc) will be R14 000 per month. The legal costs will be R34 000 in each of July and August 2022. Major repairs and maintenance to vehicles will cost R45 000 and this amount will be paid in three equal…

1. Prepare A Budgeted Statement Of Cash flow? Analyze, Think, Communicate ATC 7-1 Business Applications Case Preparing and using pro forma statements Mary Helu and Jason Haynes rccently graduatcd from the same university. After graduation thcy decided not to scck jobs at cstablishcd organizations but, rather, to start thcir own small busincss hoping they could have morc flexibility in their personal livcs for a few ycars. Mary's family has opcrated Mexican restaurants and taco trucks for the past two gencrations, and Mary noticcd thcre were no taco truck Scrviccs in thc town where their university was located. To reduce the amount they would need for an initial investmcnt, they decided to start a busincss operating a taco cart rathcr than a taco truck, from which they would cook and scrve traditional Mexican-stylc strect food. They bought a used taco cart for $18,000. This cost, along with the cost for supplics to get startcd, a business license, and street vendor licensc brought their…

Q3: Fantastic Cement Manufacturing Company expects from you to calculate and present the master budget for the year 2020 from the following information? 1. Sales budget: Type 1 cement Br400, 000 Type 2 Cement Br600, 000 2. Production costs budget: Direct material cost 70% of sales Direct wages Br 50,000 3. Manufacturing overhead budget : Fixed manufacturing overhead Br 24,000 Variable manufacturing overhead Br 36,000 4. Total Operating expenses budget Br 30,000 Required: prepare a Master Budget for Fantastic Company for Year 2020 and show the expected net profit by considering the above data only

N Question Completion Status: A Moving to another question will save this response. Question 11 Which of the following would not be used in preparing a cash budget for January 2022? O beginning cash balance on January 1 O budgeted salaries expense for January O estimated depreciation expense for January O budgeted sales and collections for January Moving to another question will save this response. Jockie Music (2) ▼ BOT 12/05/2021

The Chapter 8 Form worksheet is to be used to create your own worksheet version of the Review Problem in the text. Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: a. What are the total expected cash collections for the year under this revised budget? b. What is the total required production for the year under this revised budget? c. What is the total cost of raw materials to be purchased for the year under this revised budget? d. What are the total expected cash disbursements for raw materials for the year under this revised budget? e. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem?

Exercise 13-47 (Algo) Sensitivity Analysis (LO 13-9) Sanjana's Sweet Shoppe operates on the boardwalk of a New England coastal town. The store only opens for the summer season and the business is heavily dependent on the weather and the economy in addition to new competition. Sanjana Sweet, the owner, prepares a budget each year after reading long-term weather forecasts and estimates of summer tourism. The budget is a first step in planning whether she will need any loans and whether she needs to consider adjustments to store staffing. Based on expertise and experience, she develops the following. Gross Margin per customer (Price - Cost of Goods) $6.5 5.5 1.9 Number of Scenario Good Fair customers 45, 000 35, 000 30, 000 Poor Sanjana assumes, for simplicity, that the gross margin and the estimated number of customers are independent. Thus, she has nine possible scenarios. In addition to the cost of the products sold, Sanjana estimates staffing costs to be $45,000 plus $2 for every…

Create the six-month budget as shown below for Web Wonders, a new company that provides Internet users with quick and easy access to the World Wide Web. Save the budget as Web Wonders Budget, then answer the following questions. * REVENUE 7 Internet Subscriptions s Homepage Server Space Total Revenue Web Wonders Proposed Six-Month Budget: January to June 2019 [Current Date] 11 EXPENSES $ 12 Salaries 23 Rent 14 Equipment Leases 15 Advertising 16 Operating Costs Total Expenses 39 19 PROFIT NNN www January February March April May June Totals 4500 150 4500 7000 7000 1500 1000 1000 150 G 3500 3500 3500 2500 2500 1200 3500 780 780 780 Bingka 1. In January you estimate that 1000 Internet subscribers will join Web Wonders at a cost of P30 per subscriber. You project that the subscription revenue generated in January will increase 5% in February, 10% in March, then 20% for each of the remaining months. Calculate all increases based on January revenue. What is the total revenue in cell H9? 2.…

Required information Skip to question   [The following information applies to the questions displayed below.]   Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2022 and reports a balance sheet at December 31, 2021 as follows:   Endless Mountain Company Balance Sheet December 31, 2021 Assets Current assets:             Cash $ 46,200         Accounts receivable (net)   260,000         Raw materials inventory (4,500 yards)   11,250         Finished goods inventory (1,500 units)   32,250         Total current assets       $ 349,700   Plant and equipment:             Buildings and equipment   900,000         Accumulated depreciation   (292,000 )       Plant and equipment, net         608,000   Total assets       $ 957,700   Liabilities and…

Question 1Ming Chung Limited is applying for additional bank overdraft finance to enable thecompany to make the plant and machinery purchase described below. The directorshave has asked you to draw up a cash budget for the 6 months to 30 June 2020 toprove to the bank that that overdraft finance will be repaid by 30 June 2020. Thecompany provides you with the following financial information:Month Sales Purchases Wages Overheads£ £ £ £November 2019 (actual) 45,800 18,400 9,600 6,000December 2019 (actual) 34,600 13,900 9,800 14,000January 2020 (budgeted) 42,200 16,800 10,500 7,000February 2020 (budgeted) 44,000 17,600 11,200 7,500March 2020 (budgeted) 54,000 21,600 13,500 18,800April 2020 (budgeted) 57,600 23,000 14,400 8,000May 2020 (budgeted) 61,800 24,700 15,300 9,200June 2020 (budgeted) 63,700 25,500 15,900 9,800Notes♦ The bank balance at 1 January 2020 is expected to be £25,000.♦ 60% of sales are for cash with the other 40% being on credit. 70% of creditsales pay in the month…

BUS 203: INTRODUCTION TO COST AND MANAGEMENT ACCOUNTING PROJECT: CASH BUDGETING ASSOCIATE DEGREE YEAR 2: SEMESTER 1 (2020/21)Ronstadt Limited’s budget for the four months from January to April includes the following data:1. MonthSalesMaterialsWagesOverheads $000$000$000$000January615115.030360February636120.033390March690135.036420April684130.040425 2. One-third of sales revenue is received one month after sale and the remainder is received two months after sale. The sales in the previous two months were: November $600 000; December $540 000.3. One-quarter of purchases of materials are paid for in the month of purchase. The remainder are paid for two months later. Purchases in the previous two months were: November $108 000; December $106 000.4. Two-thirds of the wages are paid in the month in which they are earned, and the balance is paid in the following month. The wages for the previous December amounted to $30 000.5. One-half of the overhead expenditure is paid in the month in…

Question 1 The following data is available from the various functional budgets prepared at Nur Ika Enterprise for the year 2022: January RM '000 February RM '000 March RM '000 April RM 000 Cash sales 128 84 72 90 Credit sales 640 1,140 880 760 800 Purchases for resale Salaries and wages Overhead expenses 560 520 320 266 280 238 248 160 150 160 140 Other information is available as follows: (1) 5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the following sales. All goods are bought on credit from suppliers who allow 2.5% cash discount for payment in the month following purchase. (ii) (iii) Salaries and wages are paid in the month they are earned. (iv) Payments for overhead expenses are made in the month the expenses are incurred. The above overhead budget includes RM28,000 per month for depreciation. Purchase two new vans, costing RM21,000 each, are to be paid in April. (v) (vi) Rental for new office amounting RM175,000 is to be…

Question 2   The following information was extracted from the books of Mvula Ltd ( newly formed company that makes metal boxes).   1. At the start of January Mvula Ltd will have R150 000 cash in the current accoun   2. The Budgeted Sales figures is as follows:     January February March Sales R300 000 R400 000 R550 000   These figures are based on orders that customers have already placed with the company after considerable work by the sales team. In order to secure the orders the sales team negotiated payment terms with the customers. Only 10% of customers agreed to pay immediately for the metal boxes. Of the remaining customers, 60% agreed to pay after one month and 40% after two months. Within the metal box industry it is known that 2% of credit customers never pay (because they go out of business or dispute the invoices ) the metal box company has made the decision to reduce the budgeted cash inflow from the credit customers who should pay after two…

13. Which of the following costs should not be included by Kassem's Soup Restaurant in its capital budgeting analysis to determine whether to add sandwiches to its current menu of all soup? A. $5,800 in lost sales from customers who were expected to buy soup and are now expected to buy sandwiches B. $3,500 in advertising costs related to launching the sandwich line C. $900 in sandwich inventory as part of the initial cash flow D. $ 1,700 in costs previously spent on a market research study related to customer sandwich buying patterns 14. Pendant Publishing is considering a new product line that has expected sales of $1,100,000 per year for each of the next 5 years. New equipment that is required to produce the new product will cost $1, 200,000. The equipment has a useful life of 5 years and a $300,000 salvage value and will be sold at the end of year 5 for its' salvage value. Total variable costs of the product line are $450,000 per year, total fixed costs (not including depreciation)…

Assume that you are starting your own coffee shop. You will need to develop budgeted income statement and balance sheet for the next three years. Your goal is to apply the budget concepts and formulate strategies for operational sustainability. Task: Model Financial Statement Budgets for a Coffee Shop a. Income statement budget model for 3 years. b. Balance sheet budget model for 3 years. Hints (USE $ as currency + make it a low budget business + see the attached tables as refrernce to the kind of required tables)

**Please answers questions 2-4**You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country.  In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash.  Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter.  To this end, you have worked with accounting and other areas to gather the information assembled below. The company sells many styles of earrings, but all are sold for the same price - $10 per pair.  Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): January (actual).....  20,000 June (budget).....  50,000 February (actual).....  26,000 July (budget).....  30,000 March (actual).....  40,000 August (budget).....  28,000 April (budget).....  65,000…

Given the information below, answer questions 1-3. • Assume you are working on budgeting for the room department of your hotel. • Assume the hotel’s ‘Room Revenue (Sales)’ was $1,640,000 during 2019. Based on the lodging forecast report, you expect the ‘Room Revenue (Sales)’ to increase by 3.7% next year. • Assume the ‘Guest Supplies’ expenses (variable costs) from the room department was $246,000 during 2019. For 2020, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2019. • Assume the ‘Salaries’ expenses (fixed costs) from the room department was $280,000 during 2019. For 2020, this fixed cost will increase by 2% due to the expected increase in living expenses in this area.   1. What will be the budgeted ‘Room Revenue (Sales)’ for 2020 ($)?  Note: The Answer field only accepts numbers. Thus, do not include $ or commas when you type your answer.  Type your answer as a whole number (e.g., 200000).

Week 6 South Hampton University is preparing its budget for the upcoming academic year. This is a specialised private university that charges fees for all degree courses. Currently, 30,000 students are enrolled on campus. However, the university is forecasting a 5 per cent growth in student numbers in the coming year, despite an increase in fees to $3,000 per subject. The following additional information has been gathered from an examination of university records and conversations with university managers:   South Hampton is planning to award scholarships to 200 students, which will cover their fees.   The average class has 80 students, and the typical student takes 4 subjects per semester. South Hampton operates 2 semesters per year.   The average academic staff salary is $120,000 per annum including on-costs.   South Hampton’s academic staff are evaluated on the basis of teaching, research, administration and professional/community service. Each of the academic staff…

1. PROBLEMS - BUDGETING FOR A MERCHANDISING CONCERN (CHAPTER 6) 1.1 BUDGETED INCOME STATEMENT AND BUDGETED STATEMENT OF FINANCIAL POSITION Benito Toma Corporation, maker of lambanog, is making its master budget for 2021. They buying lambanog from a supplier in Quezon Province and sell at a profit. Use the following information to answer the questions below The Operating Budget for 2021 1. The sales department budgeted 2. Merchandise inventory: 200,000 units @ P40.00 per unit The cost accounting department reported - merchandise inventory January 1, 2021- 2.500 units with a cost of P20.00 per unit. Desired ending inventory is 20,000 units. (Use First In-First Out Method (FIFO)) 3. The Purchasing department projected the cost in 2021 to increase to P24.00 per unit. 4. Last year, the fixed operating expenses was P800,000 (including depreciation expense of P60,000). For 2021, they expect it to remain the same. 5. Variable operating expenses per unit - P10.00 6. Interest expense is budgeted…

Below are the budgeted revenue and expenses for a restaurant for the year 2022. RM ('000) 71,250 Revenue Sales Expenses RM ('000) 28,500 Cost of supplies Salaries 4,200 Wages Depreciation Repair and Maintenance 17,100 900 3,000 Advertisement 1,500 Laundry Interest on Loan 200 2,200 Miscellaneous expenses 2,300 650 Utilities Below are the additional information given to you for further analysis: The expected pattern of sales for the year 2022 are as follows and it is the company policy to analyse based on quarters. Quarter Percentage of sales 1 24 2 20 3 24 4 32 75% of the sales are on a cash basis and the balance will be received in the next quarter. The costs of supplies vary directly with sales and a constant stock value of supplies are kept. 20% of purchases of the food and drinks are for cash and the balance are paid during next quarter. 80% of the repairs and maintenance item is for a major redecoration to be paid in the third quarter. Wages, which are variable with sales, are…

Project 2- Capital Budgeting   John is considering opening a hotdog stand on Michigan Avenue. John’s market research shows that the clientele is young professionals, typically without children, who like the traditional aspect of eating hotdogs, but also relish his gourmet, specially manufactured low-fat hotdogs and the healthy side dishes his stand also sells. John's overall plan is to get the stand up and running for five years, and then sell the stand off to a new owner and retire to Florida. John estimates that the cost of starting up a stand will be as follows: Purchase of retail kiosk (mobile retail food outlet) $500,000 Specialized kitchen equipment $50,000 Installation of the kitchen equipment $10,000 Furniture and fittings $50,000   John estimates that annual operating costs for his stand as follows: Kitchen and service staff (5 people)- total of $200,000 per year License and rent costs $150,000 Raw materials: -Hotdogs- $2 per hotdog. Raw material price per burger goes…

Completing a comprehensive budgeting problem—merchandising Company Alliance Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for April 2018 and a balance sheet at April 30, 2018. The March 31, 2018, balance sheet follows: As Alliance Printing Supply’s controller, you have assembled the following additional information: April dividends of $7,000 were declared and paid. April capital expenditures of $16,300 budgeted for cash purchase of equipment. April depreciation expense, $1,000. Cost of goods sold, 40% of sales. Desired ending inventory for April is $22,400. April selling and administrative expenses include salaries of $37,000, 30% of which will be paid in cash and the remainder paid next month. Additional April selling and administrative expenses also include miscellaneous expenses of 10% of sales, all paid in April. April budgeted sales, $89,000, 80% collected in April and 20°/0 in May. April cash payments of March 31…

Exercise 13-36 (Algo) Estimate Purchases and Cash Disbursements (LO 13-3, 4) Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 17,900 nozzles in stock, although the latest estimate for August production indicates a requirement for only 17,200 nozzles. Total uses of the nozzle are expected to be 16.900 in September and 17,740 in October. Nozzles are purchased at a wholesale price of $19. Eliot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 32,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements…

2. What will be the budgeted ‘Guest Supplies’ expenses for 2020 ($)? • Assume you are working on budgeting for the room department of your hotel. • Assume the hotel’s ‘Room Revenue (Sales)’ was $1,640,000 during 2019. Based on the lodging forecast report, you expect the ‘Room Revenue (Sales)’ to increase by 3.7% next year. • Assume the ‘Guest Supplies’ expenses (variable costs) from the room department was $246,000 during 2019. For 2020, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2019. • Assume the ‘Salaries’ expenses (fixed costs) from the room department was $280,000 during 2019. For 2020, this fixed cost will increase by 2% due to the expected increase in living expenses in this area. Note: The Answer field only accepts numbers. Thus, do not include $ or commas when you type your answer.  Type your answer as a whole number (e.g., 200000).

2. AP Sutton's Electronic Repair Shop has budgeted the following time and material for 2020. d Sutton's Electronic Repair Shop Budgeted Costs for the Year 2020 Time Charges Material Loading Charges Aatici, Shop employees' wages and benefits $108,000 Parts manager's salary and benefits $25,400 - Office employee's salary and benefits 13,600 23,500 Overhead (supplies, depreciation, advertising, utilities) 26,000 16,000 Total budgeted costs Sutton's budgets 5,000 hours of repair time in 2020 and will bill a profit of $10 per labor hour along with a 25% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,00o. $157,500 $55,000 ect 15 On January 5, 2020, Sutton's is asked to submit a price estimate to fix a 72-inch flat- screen TV. Sutton's estimates that this job will consume 4 hours of labor and $200 in parts. Instructions a. Compute the labor rate for Sutton's Electronic Repair Shop for the year 2020. b. Compute the material loading charge…

equired information Skip to question   [The following information applies to the questions displayed below.]   Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2022 and reports a balance sheet at December 31, 2021 as follows:   Endless Mountain Company Balance Sheet December 31, 2021 Assets Current assets:             Cash $ 46,200         Accounts receivable (net)   260,000         Raw materials inventory (4,500 yards)   11,250         Finished goods inventory (1,500 units)   32,250         Total current assets       $ 349,700   Plant and equipment:             Buildings and equipment   900,000         Accumulated depreciation   (292,000 )       Plant and equipment, net         608,000   Total assets       $ 957,700   Liabilities and…