Manegerial Accounting Essay Sample

Cash Budget with Supporting Schedules ; Changing Assumptions [ LO2. L O4. L O8 ] Refer to the information for Janus Products. Inc. . in Problem 8-17. The company’s president is interested in cognizing how cut downing stock list degrees and roll uping histories receivable Oklahoman will impact the hard currency budget. He revises the hard currency aggregation and stoping stock list premises as follows: 1. Gross saless continue to be 20 % for hard currency and 80 % on recognition. However. recognition gross revenues 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 2nd month following sale. Credit gross revenues from May and June are collected during the 3rd one-fourth utilizing the aggregation per centums specified in Problem 817. 2. Thymine he company maintains its stoping stock list degrees for July. August. and September at 25 % of the cost of ware to be sold in the undermentioned month. The ware stock list at June 30 remains $ 18. 000 and histories collectible for stock list purchases at June 30 remains $ 11. 700.

All other information from Problem 8-17 that is non referred to above remains the same. Required: 1. Using the president’s new premises in ( 1 ) above. fix a agenda of expected hard currency aggregations for July. August. and September and for the one-fourth in entire. 2. Using the president’s new premises in ( 2 ) above. fix the following for ware stock list: a. A ware purchases budget for July. August. and September. B. A agenda of expected hard currency expenses for ware purchases for July. August. and September and for the one-fourth in entire. 3. Using the president’s new premises. fix a hard currency budget for July. August. September. and for the one-fourth in entire. 4. Fix a brief memoranda for the president explicating how his revised premises affect the hard currency budget.