{"id":75632,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/felasco-nurseries-inc_cash-budget-2"},"modified":"2017-08-18T07:02:55","modified_gmt":"2017-08-18T07:02:55","slug":"felasco-nurseries-inc_cash-budget-2","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/felasco-nurseries-inc_cash-budget-2\/","title":{"rendered":"Felasco Nurseries Inc_Cash Budget"},"content":{"rendered":"

<\/a> <\/p>\n

\n

Basic Cash Budget<\/p>\n

P 3. Felasco Nurseries Inc. has been in business for six years and has four divisions. Ethan Poulis, the corporation\u2019s controller, has been asked to prepare a cash budget for the Southern Division for the first quarter. Projected data supporting this budget follow.<\/p>\n

Sales<\/span> (60% on credit) Purchases<\/p>\n\n\n\n\n\n\n\n
November<\/td>\n$160,000<\/td>\nDecember<\/td>\n$ 86,800<\/td>\n<\/tr>\n
December<\/td>\n200,000<\/td>\nJanuary<\/td>\n124,700<\/td>\n<\/tr>\n
January<\/td>\n120,000<\/td>\nFebruary<\/td>\n99,440<\/td>\n<\/tr>\n
February<\/td>\n160,000<\/td>\nMarch<\/td>\n104,800<\/td>\n<\/tr>\n
March<\/td>\n140,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Collection records of accounts receivable have shown that 30 percent of all credit sales are collected in the month of sale, 60 percent in the month following the sale, and 8 percent in the second month following the sale; 2 percent of the sales are uncollectible. All purchases are paid for in the month after the purchase. Sala\u00adries and wages are projected to be $25,200 in January, $33,200 in February, and $21,200 in March. Estimated monthly costs are utilities, $4,220; collection fees, $1,700; rent, $5,300; equipment depreciation, $5,440; supplies, $2,480; small tools, $3,140; and miscellaneous, $1,900.<\/p>\n

Each of the corporation\u2019s divisions maintains a $6,000 minimum cash bal\u00adance. As of December 31, the Southern Division had a cash balance of $9,600.<\/p>\n

Required<\/em><\/strong><\/p>\n

1. Prepare a monthly cash budget for Felasco Nurseries\u2019 Southern Division<\/strong>tor the first quarter.<\/p>\n

2. Should Felasco Nurseries anticipate taking out a loan for the Southern Divi\u00adsion during the quarter? If so, how much should it borrow, and when?<\/p>\n<\/fieldset>\n

<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

Basic Cash Budget P 3. Felasco Nurseries Inc. has been in business for six years and has four divisions. Ethan Poulis, the corporation\u2019s controller, has been asked to prepare a cash budget for the Southern Division for the first quarter. Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-75632","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/75632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=75632"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/75632\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=75632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=75632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=75632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}