# Manegerial Accounting

Good Essays
PROBLEM 8-18 Cash Budget with Supporting Schedules; Changing Assumptions [LO2, L O4, L O8] Refer to the data for Janus Products, Inc., in Problem 8-17. The company's president is interested in knowing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory assumptions as follows: 1. Sales continue to be 20% for cash and 80% on credit. However, credit sales from July, August, and September are collected over a three-month period with 25% collected in the month of sale, 60% collected in the month following sale, and 15% in the second month following sale. Credit sales from May and June are collected during the third quarter using the collection percentages specified in Problem 817. 2. T he company maintains its ending inventory levels for July, August, and September at 25% of the cost of merchandise to be sold in the following month. The merchandise inventory at June 30 remains \$18,000 and accounts payable for inventory purchases at June 30 remains \$11,700. All other information from Problem 8-17 that is not referred to above remains the same. Required: 1. Using the president's new assumptions in (1) above, prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. 2. Using the president's new assumptions in (2) above, prepare the following for merchandise inventory: a. A merchandise purchases budget for July, August, and September. b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. 3. Using the president's new assumptions, prepare a cash budget for July, August, September, and for the quarter in total. 4. Prepare a brief memorandum for the president explaining how his revised assumptions affect the cash budget.

1. | Collections on sales: | July | August | Sept. | Quarter | | Cash sales | \$ 8,000 | \$14,000 | \$10,000 | \$ 32,000 |

## You May Also Find These Documents Helpful

• Good Essays

2-28 Consider the following costs that were incurred during the current year: (Answers are written in BLUE letter for easier access). 1. Tire costs incurred by Ford Motor Company. Product cost, Variable, Direct Material 2. Sales commissions paid to the sales force of Dell Inc. Period Cost, Variable 3. Wood glue consumed in the manufacture of Thomasville furniture. Product cost, Variable, Direct Material 4. Hourly wages of refinery…

• 572 Words
• 3 Pages
Good Essays
• Powerful Essays

CASES FROM MANAGEMENT ACCOUNTING PRACTICES Foreword Case 1 Figure 8 Island Homeowners’ Association Howard O. Rockness Joanne W. Rockness Charles L. Earney William J. Mayew Case 2 China Huaneng Group Thomas W. Lin Kenneth A. Merchant Case 3 The Bala nced Scorecard at Cola Lourdes F. White Neslihan Tuncbilek Case 4 Balancing the Corporate Scorecard Interactive Simulation Joseph G. Donelan W. Timothy O’Keefe Case 5 Alternative Chargeback Systems for Shared Services at The Boeing Company:…

• 53519 Words
• 215 Pages
Powerful Essays
• Powerful Essays

Introduction to Managerial Economics Managerial economics (sometimes referred to as business economics) is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression analysis and correlation, Lagrangian calculus (linear). If there is a unifying theme that runs through most of managerial economics it is the attempt…

• 11216 Words
• 45 Pages
Powerful Essays
• Powerful Essays

| Jamnalal Bajaj Institute of Management Studies | | | | | Sachin Patil Roll No: 56 Managerial Economics Projection of Sales of Tata Motors - Commercial Vehicles from Year 2012-2020 Sachin Patil Roll No: 56 Managerial Economics Projection of Sales of Tata Motors - Commercial Vehicles from Year 2012-2020 This is to certify that Sachin Patil, Roll no.: 56, a student of Masters in Information Technology from Jamnalal Bajaj…

• 1969 Words
• 8 Pages
Powerful Essays
• Good Essays

QUESTIONS : 1.What are the various factors which may influence the demand for intermediate goods like cables? Explain the most appropriate method of forecasting the demand for such an item. 2. a) Explain the method of cost-plus pricing and state its limitations. Point out cases where it is suitable. b) Briefly outline the statistical method of estimating cost function. 3. a) Explain the concept of law of diminishing marginal utility with a suitable example. Why is it relevant for managers in taking…

• 5679 Words
• 23 Pages
Good Essays
• Good Essays

1a.Why managerial skills play a critical role in organizational and individual success alike? Under what conditions they have an even more prominent role as a growth-producing agent? Management is such a term that is almost a synonym to success. Whether it’s individual or organization, management is must in order to be developed or to grab success. Management of time, management of work load, management of staff, management of environment, management of finance etc everything needs to be well…

• 1192 Words
• 5 Pages
Good Essays
• Good Essays

* Chapter 1: Problems 2, 3, and 6 * Chapter 2: Problems 1, 5, and 6 * * Chapter 1 * 2. If you decide to pay 1 percent of this amount (in Question 1) as a cash bonus, what performance level (what share price or shareholder value) in the table should trigger the bonus? Suppose you decide to elicit high CEO effort when, and if, medium luck occurs by paying a bonus should the company’s value rise to \$800,000,000. What criticism can you see of this incentive contract…

• 1140 Words
• 5 Pages
Good Essays
• Good Essays

1a) What is the vision? 1a) Costco’s CEO stated that the vision for Costco was to give customers the best possible value for their purchase while remaining ethical. 1b) What is the mission? 1b) Costco’s mission is to ensure customers, employees, suppliers, and shareholders were respected and treated fairly to ensure the best outcome of product delivery at low costs to the customer. 1c) Are they realistic? 1c) Costco’s vision and mission are realistic because they focus on basic fundamentals…

• 1960 Words
• 8 Pages
Good Essays
• Powerful Essays

REDISCOVERING INDIAN MANAGEMENT1 We would like to acknowledge the Indian Institute of Management Bangalore for institutional support during this research project. We would also like to thankfully recognize the students of the Management in Asia class, University of St. Gallen, participating in the India Study Trip in April 2003. Explicitly, we would like to acknowledge Bianca Braun, Reto Candrian, Martin Heusi, Carole Hofmann, Nicolas Markovic, Philippe Rose, Vincent Sennhauser and Nicole Ziegler…

• 4827 Words
• 20 Pages
Powerful Essays
• Powerful Essays

LPU | Managerial Accounting | Analysis of Balance sheet and P&L account of Tata Steel | | | | To, Miss Razia Sehdev By,Harprit Singh RQ3703A057450070001 | 9/5/2011 | Index Industry Profile _______________________________________________ 03 Comparative Analysis __________________________________________ 04 Trend Analysis _______________________________________________ 05 - 07 Common size statement _________________________________________ 08 Financial Ratio &…

• 3698 Words
• 15 Pages
Powerful Essays