Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows:
March $160,800
April 152,800
May 139,000
Depreciation, insurance, and property taxes represent $35,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 73% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.
Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May.

Answers

Answer 1

Answer:

Total Cash Payments are as follows:

For March = $91,834

For April = $119,960

For May = $107,726

Explanation:

Note: See the attached Excel file for the schedule of cash payments

The expenses paid in each month are estimated as follows:

a. March Expenses

Paid in March = (Total projected selling and administrative expenses for March - Depreciation, insurance, and property taxes for March) * Percentage of reminder paid = ($160,800 - $35,000) * 73% = $91,834

Paid in April = (Total projected selling and administrative expenses for March - Depreciation, insurance, and property taxes for March) * Percentage of balance paid = ($160,800 - $35,000) * (100% - 73%) = $33,966

b. April Expenses

Paid in April = (Total projected selling and administrative expenses for April - Depreciation, insurance, and property taxes for April) * Percentage of reminder paid = ($152,800 - $35,000) * 73% = $85,994

Paid in May = (Total projected selling and administrative expenses for April - Depreciation, insurance, and property taxes for April) * Percentage of balance paid = ($152,800 - $35,000) * (100% - 73%) = $31,806

c. May Expenses

Paid in May = (Total projected selling and administrative expenses for May - Depreciation, insurance, and property taxes for May) * Percentage of reminder paid = ($139,000 - $35,000) * 73% = $75,920


Related Questions

Due to the efficiency of its supply chain as a result of technology and resourcefulness, Zara can deliver products to its stores quicker than their competitors with:_______.
A. reverse logistics.
B. less electronic data interchanges.
C. longer lead times.
D. shorter lead times.
E. more stockouts.

Answers

Answer:

D. shorter lead times.

Explanation:

Most of Zara's suppliers are actually working near Zara's headquarters in northern Spain. This  increases production costs, but also increases supply chain efficiency. Daily sales reports are sent by all the stores around the world and headquarters then replenish the products that are selling in higher volumes. Lead times are extremely short, stockouts are very rare, and inventory levels are extremely low. It is basically a fashion industry version of Toyota's JIT.

Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is units. Southeastern estimates its annual holding cost for this item to be ​$ per unit. The cost to place and process an order from the supplier is ​$. The company operates days per​ year, and the lead time to receive an order from the supplier is working days. ​a) What is the economic order​ quantity? nothing units ​(round your response to the nearest whole​ number).

Answers

Answer:

A. Economic order​ quantity= 319

B. Annual holding​ costs= 3,669

C. Annual ordering​ costs= 3,669

D. 154

Explanation:

a) Calculation for the economic order​ quantity

Using this formula

Economic order​ quantity=√2*Demand*Cost order/Annual holding cost

Let plug in the formula

Economic order​ quantity=√2*15,400*76/23

Economic order​ quantity=√2,340,800/23

Economic order​ quantity=√101,774

Economic order​ quantity= 319

b) Calculation for annual holding​ costs

Using this formula

Annual holding​ costs=Economic order​ quantity/2*Annual holding cost

Let plug in the formula

Annual holding​ costs=319/2*23

Annual holding​ costs= 3,669

c) Calculation for the annual ordering​ costs

Using this formula

Annual ordering​ costs=Demand/Economic order​ quantity*Cost order

Let plug in the formula

Annual ordering​ costs=15,400/319*76

Annual ordering​ costs= 3,669

d) Calculation for reorder​ point

Using this formula

Reorder point=Demand/Numbers of days the company operate per​ year*Lead time

Let plug in the formula

Reorder point=15,400/300 days per year*3

Reorder point= 154

Preparing an income and expense statement helps in answering the question, "Where does all my money go?" This statement takes __________and ___________subtracts to determine an individual's or a family's cash surplus or deficit situation.

Answers

Correct question read;

"This statement takes __________and subtracts_________ to determine an individual's or a family's cash surplus or deficit situation.

Answer:

note of income; the expenses

Explanation:

Remember, the income and expense statement as the name implies is a financial statement that takes note of all incomes into a financial account and then subtracting identified expenses from the income to determine if there was a loss or profit.

By following this method, one ultimately would be able to answer the question, "Where does all my money go?".

The following transactions were completed by the company. The company completed consulting work for a client and immediately collected $7,000 cash earned. The company completed commission work for a client and sent a bill for $5,500 to be received within 30 days. The company paid an assistant $2,150 cash as wages for the period. The company collected $2,750 cash as a partial payment for the amount owed by the client in transaction b. The company paid $1,000 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)

Answers

Answer:

The Company

The Impact of Each Transaction on the Accounting Equation:

1. Assets (Cash + $7,000) = Liabilities + Equity (Retained Earnings + $7,000)

2. Assets (Accounts Receivable + $5,500) = Liabilities + Equity (Retained Earnings + $5,500)

3. Assets (Cash -$2,150) = Liabilities + Equity (Retained Earnings -$2,150)

4. Assets (Cash +$2,750 Accounts Receivable -$2,750) = Liabilities + Equity

5. Assets (Cash -$1,000) = Liabilities + Equity (Retained Earnings -$1,000)

Explanation:

The Company applies the accounting equation, which states that Assets = Liabilities + Equity.  With each transaction, the accounting equation is demonstrated as shown above.  This means that each transaction that is properly recorded affects the accounting equation in two ways.  Note that the accounting equation is the basis for the double-entry system of financial accounting.

Geralds manufacturing firm sold goods worth $6000 to some customers on credit in the month of January. His customers plan to pay him the entire amount at once in March. Gerald plans to record and recognize this income in the business’s accounts in March. Which accounting method does Geralds business follow?

His business follows the (________) method of accounting.

Answers

Answer:

Cash accounting method

Explanation:

The cash accounting method records receipts and expenses during the period in which cash changes hands. In this method, revenue will be recorded when payment from a customer is received. Expenses are not recorded unless money is paid out.  In short, revenues and expenses are recognized and recorded only when cash is received or paid.

Cash accounting contrasts with the accrual accounting system, which recognizes revenues and expenses when their respective events occur.

Which of the following are frequently mentioned goals of the Federal Reserve? Check all that apply.

Answers

Answer:

Stability in the financial system

– Price stability—fighting inflation

– Full employment

– Economic growth

– Interest rate stability

– Currency stability

Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, trucks, and SUVs. Doing this helps Toyota manage the ______ of industrial demand.
a. volatility
b. division
c. durability
d. development

Answers

Answer:

a. volatility

Explanation:

From the question, we are informed that "Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, trucks, and SUVs. In case of Doing this it helps Toyota manage the volatility of industrial demand.

volatility of industrial demand do occur where there is uncertainty as far as demand is concerned in the consumer products , as a result of this most firms to catch up with compitition, growing their sales an lot more , so in this case Toyota still continues to manufacture its traditionally fueled cars, trucks, and SUVs even though there is Mirai for the U.S. market.

In 2010, real GDP was $13.2 trillion and nominal GDP was $14.6 trillion. What was the GDP deflator for that year?a. 9.6% lower b. 9.6% higher c. 10.6% lower . d. 10.6% higher

Answers

Answer:

d. 10.6% higher

Explanation:

Given that;

Real GDP = $13.2 trillion

Nominal GDP = $14.6 trillion

GDP deflator = (Nominal GDP/Real GDP)× 100)

Hence,

GDP deflator = (14.6 / 13.2 ) × 100

GDP deflator = 110.6%

Thus,

= 110.6 - 100

= 10.6% higher

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