JJ chap 10 sol
5
Chapter 10 Problem 2 a Garret Bug Spray Manufacturing Company Budgeted Income Statement For the First Quarter of 2015 Contribution margin 235,400 Net income $55,629 b. Garret Bug Spray Manufacturing Company Cash Budget For the First Quarter, 2015 Cash collected from sales: $517,500 Cash payments: 468,235 Excess of receipts over disbursements 49,265 Plus beginning cash balance 30,000 Ending cash balance $79,265 Total of Balancesheet 388765 Problem 3 Part A: TechLabs Cash Budget For January 2015 Cash receipts Collection of December 2014 tuition $ 40,000 Collection of January 2015 tuition 55,000 Total cash receipts 95,000 Cash Disbursements Total cash disbursements 119,608 Excess of disbursements over receipts (24,608) Plus beginning cash balance 60,000 Ending cash balance $ 35,392
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Transcript of JJ chap 10 sol
Chapter 10Problem 2
a
Garret Bug Spray Manufacturing Company
Budgeted Income Statement
For the First Quarter of 2015Contribution margin 235,400
Net income $55,629
b.
Garret Bug Spray Manufacturing Company
Cash BudgetFor the First Quarter, 2015Cash collected from sales: $517,500
Cash payments:468,235
Excess of receipts over disbursements49,265
Plus beginning cash balance 30,000
Ending cash balance$79,265
Total of Balancesheet 388765Problem 3
Part A:
TechLabs Cash Budget
For January 2015Cash receipts
Collection of December 2014 tuition$ 40,000
Collection of January 2015 tuition 55,000
Total cash receipts
95,000Cash Disbursements
Total cash disbursements 119,608Excess of disbursements over receipts
(24,608)
Plus beginning cash balance
60,000Ending cash balance
$ 35,392Part B.
TechLabs Budgeted Income Statement
Tuition revenue
$110,000
Total expense 75,550
Net income
$22,392Part C.
TechLabs Budgeted Balance SheetTotal Assets 252392Total liabilities 110000Total equity 142392Problem 4
a.
Schrdinger Science Store
Budgeted Income Statement Gross margin155,400
Net Income$58,440
b.
Schrdinger Science Store
Cash Budget for the Quarter Ended March 31, 2015Total cash receipts$376,250
Total disbursements317,834
Excess of receipts over disbursements58,416
Plus beginning cash balance 40,000
Ending Cash balance$ 98,416
C. Budgeted Balance SheetTotal assets$409,314
Liabilities:
Accounts payable $123,374
Total stockholder's equity 285,940
Total liabilities and stockholder's equity$409,314
d. As the ending cash balance for the first quarter is $58,440, a minimum desired cash balance of $30,000 will leave $28,440 for opening the store. A store opening requires $50,000. Thus, the company cannot open the store without obtaining additional funds.
Problem 8
a.Production Budget for 2015
1 2 3 4
Units to be produced 57800 69800 97440 46960
Material Purchases 690970 813406 988548 524076
Cost of purchases 55278 65072 79084 41926
Income statement
C. Net Income 252955 303475 556075 158230Variable cost of sales per bottle:Chemical A$ 0.78
Chemical B0.88
Direct labor0.80
Variable overhead 1.20
Total$3.66Problem 9
a.Production Budget for 2015
1 2 3 4
Production units 5880 6320 9840 8360Chemical A b. Material Purchases 35030 40455 57974 52141Cost of purchases 36782 42477 60873 54748Chemical B b. Material Purchases 20834 23598 33818 29749Cost of purchases 3125 3540 5073 4462c.Budgeted Income Statement for the Year 2015
Quarter 1Quarter 2Quarter 3Quarter 4Year
Sales$84,000$72,000$120,000$96,000$372,000
Contribution margin23,73020,34033,90027,120105,090
Net income$17,730$14,340$27,900$21,120$81,090
Variable cost of sales per bottle:
Chemical A$6.30
Chemical B0.53
Direct labor0.55
Variable overhead0.75
Total$8.13
Problem 11 Cash Budget for the Year 2015
Cash receipts 475000 437500 512500 575000
Cash disbursements 287550 327350 372150 444350
Problem 12Purchases 201250 222375 237975 242400
