The company pays 80 percent of it cash expenses i The remaining 20 percent are p
ID: 2515697 • Letter: T
Question
The company pays 80 percent of it cash expenses i The remaining 20 percent are paid in the following fiscal Peiod ineu payable totaling $25,000 were outstanding at the these data, complete the following requirements. n the ing year b. Prepare a cash payments schedule for the coming year. c. Compute the total accounts payable expected to be outstanding at 9. Heart & Soul Music Store expects to sell 20,000 CDs in the first fous consists of asfollows: of business in 20X1. Each CD sells for $12 and costs 88. Ma to prepare an operating budget for the first fiscal quarter (Q1). Q1 January, February, and March. Monthly sales are projected to be 13. Next isexpe in its s JanuaryFebruaryMarch Ai 20X1 Expected sales (in units a. Prepare a monthly sales forecast in dollars for Q1 Ganuary, February, and 2.500 4,000.500 6.00 March). b. Prepare a monthly contribution margin statement for Q1. c. Assume that for Heart & Soul's operations, ending inventory is projected a. Fin pri b. If N the e. If th to be 80 percent of next month's sales. Assume the company started 20X with 2,000 CDs in its inventory. How many CDs does the company need to buy in each month of Q1? d. What is the cost of inventory purchases for each month? 10. Eggs Cetera is new breakfast café. Based on a recent market analysis, the 875 company expects the following quarterly demand (number of customers; 01 10,000 02 15,000 03 20,000 Q4 18,000 In 23 the Th estimates that food accounts for 80 percent of each customer 20 percent comes from beverages. Food costs the café 75 percent of ise o price, while beverages cost only 20 percent of their selling price. these data, prepare the following: a. A quarterly sales forecast. b. A quarterly contribution margin forecast. Bi 11. Lincoln Cafe is considering buying a new oven that isExplanation / Answer
(a) Fixed Cost Budget for the year Q1 Q2 Q3 Q4 Total Advertising 30000 30000 30000 30000 120000 Rent 20000 20000 20000 20000 80000 Salaries 80000 80000 80000 80000 320000 Insurance 2000 2000 2000 2000 8000 Depreciation 15000 15000 15000 15000 60000 Total 147000 147000 147000 147000 588000 (b) Cash Payment Schedule for the year Quarter 1 Quarter 2 Quarter 3 Quarter 4 80% of Q1 20% of last Q Total 80% of Q2 20% of last Q Total 80% of Q3 20% of last Q Total 80% of Q4 20% of last Q Total Opening 0 25000 25000 0 0 0 0 0 0 0 0 0 Advertising 24000 0 24000 24000 6000 30000 24000 6000 30000 24000 6000 30000 Rent 16000 0 16000 16000 4000 20000 16000 4000 20000 16000 4000 20000 Salaries 64000 0 64000 64000 16000 80000 64000 16000 80000 64000 16000 80000 Insurance 1600 0 1600 1600 400 2000 1600 400 2000 1600 400 2000 Total 130600 132000 132000 132000 © Balance outstanding at the end of the year 20% of last quarter Advertising 6000 Rent 4000 Salaries 16000 Insurance 400 26400