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New 2.000.000 11.000 1.000 00 14 31 www The same 17.00 they 43.000, www Lalig BH H Huy | HI HI H THU BHXH H - A TH Hatang ki tu van tai Ha Neuvias W H H H H H - Hi quan v chi HH Mau HHHH. wych w How pat MY A HI DHE Hew C Required: 1. Prepare a natych budget and sooring scheduled for May, home Sonoma Housewares Inc Cash Budget For the Three Months Ending Juli May June July Estimated cash receiptstrom IN . Collection of accounts receive ex Total cash reces Estimated cath payments for Manufacturing cots Seling and administrative expenses Capital penditures Other purposes Income Dividends Total cash payt Cash increase or decrease Cas balance beginning of month Cash balance and of month Mchance Ece (decento COI u m0um D0000 000 000 punti July Sales Cash Budget The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: June 190,000 10.000 $150,000 Manufacturing 37,000 45.000 54,000 Seting and verses 26.000 28.000 33.000 Capital 16.000 The company expects to sell about 15% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $7,000 of the estimated monthly manufacturing costs. The annual Insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 75% are expected to be paid in the month in which they are incurred and the balance in the following month Current assets as of May 1 include cash of $34,000, marketable securities of $48,000, and accounts receivable of $106,400 ($78,000 from April sales and $28,400 from March sales). Sales on account for March and April were $71,000 and $78,000, respectively. Current liabilities as of May 1 include $12,000 of accounts payable incurred in April for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $13,000 will be made in June. Sonoma's regular quarterly dividend of $7,000 is expected to be declared in June and paid in July, Management wants to maintain a minimum cash balance of $27,000. Required: 1. Prepare a monthly cash budget and supporting schedules for May, June, and July Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign Sonoma Housewares Inc For the Three Months Ending July 31 Cash Budget May June July Ested cash receptorom Cash sales Collection at counts receivable X Et cathens for Manufacturing costs Sandeep Copentures Other purposes 0 1. Prepare a monthly cash budget and supporting schedules for May, June, and July Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Sonoma Housewares Inc. Cash Budget For the Three Months Ending July 31 June July 15 Cash sales Calcio atacourt Estimated chest Matuturing code Selling and administrative Express Capital expenditures Other purposes Income tax Dividende Total cash payments Cash increase or decrease) Cashbante being of me Cash balance and of more munch bin The One 101 10 LTD Feedback The primary source of estimated cash receipts is from cash sales and collections on account. To estimate cash receipts from cash sales and collections on account, a schedule of collections from sales is prepared. 2. The budget indicates that the minimum cash balance will not be maintained in July. This situation can be corrected by borrowing and/or by the sale of the marketable securities, if they are held for such purposes. At the end of May and June the cash balance will exceed the minimum desired balance. Feedback Sometimes an item July be a decrease in one period and an increase in a different period What weaknesses are shown by this cash budget? Feedback Payco 5 Assignment Can Song The controller of Sonoma Housewares Inc. Instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May June July Sales $89,000 $105,000 $150,000 Manufacturing costs 37,000 45,000 54,000 26,000 Selling and administrative expenses Capital expenditures 28,000 33,000 36,000 The company expects to sell about 15% of its merchandise for cash of sales on account, 60% are expected to be collected in the month following the salt and the remainder the following month (second month following sale). Depreciation, insurance and property tax expense represent $7,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November of the remainder of the manufacturing costs, 75% are expected to be paid in the month in which they are incurred and the balance in the following month Current assets as of May 1 include cash of 534,000, marketable securities of 548,000, and accounts receivable at $106,400 (578,000 from April sales and 525,400 from March sales). Sales on account for March and April were $71,000 and $78,000 respectively. Current liabilities as of May 1 include $12,000 of accounts payable incurred in April for manufacturing costs A selling and administrative expenses are paid in cash in the period they are locurred. An estimated income tax payment or $13,000 will be made in June. Sonoma's regular quarterly dividend of $7,000 is expected to be declared in June and paid in July, Management wants to maintain a minimum cash balance of $27,000 Required: 1. Prepare a monthly cash budget and supporting schedules for May, Jund, and July. Input all amounts as positive us except overall cash decrease and deficiency which should be indicated with a minus sign Sonoma Housewares Inc. Cash Budget For the Three Months Ending July 31 May June July Estimated cash receipts from Cash sales 33.0 Collection of accounts receivable 16.15 Check My Work Assignment Score 50% Sewwand o do F7 Dll FB DD F g 541 90) E Week 5 Assignment 1. Prepare a monthly cash budget and supporting schedules for May, June, and July. Input all amounts as positive values excest overall cast decrease and deficiency which should be indicated with a minus sign Sonoma Housewares Inc. Cash Budget For the Three Months Ending July 31 May June July Estimated cash receipts from: Cash sales Collection of accounts receivable 12.50 15,750 22.500 Total cash receipts Estimated cash payments for Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes Tncome tax Dividends Total cash payments Cash increase or decrease) Cash balance at beginning of month Cash balance at end of month Minimum cash balance ces (ency - The primary srce of estimated cash receipts from cash sales and collections on account To estimate chants from cash sales and cons on account, a schedule of hans from roured Oh My Work A 50.5% Summer RarG 00 E Dll FA DD FO F 711 512 & +

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