BITS Pilani Schedule of Cash Disbursement for Direct Material Purchases Questions


Description

To Industries prepares monthly coin budgets.The subjoined budget knowledge is serviceable for April and May 2020:

April

May

Sales

$650,000

$700,000

Direct symbolical acquisitions

220,000

240,000

Direct work

175,000

180,000

Manufacturing aloft

120,000

130,000

Selling and professional expenses

150,000

150,000

All sales are merit sales.The aggregation expects to infer 65% from customers in the month of the sale and the retaining 35% in primeval month subjoined the sale.The aggregation acquisitions frequented symbolicals on representation.The aggregation pays for 70% of the acquisitions in the month of the acquisitions and the retaining 30% in the primeval month subjoined the acquisition.Direct work, manufacturing aloft, and selling and professional expenses are remunerated in coin in the month incurred.

Additional knowledge:

  • March 2020 merit sales were $600,000
  • March 2020 acquisitions of frequented symbolicals were $200,000
  • The aggregation’s coin estimate on April 1, 2020 is expected to be $90,000
  • The aggregation wants to detain a reserve coin estimate of $80,000 and has a thread of merit in the totality of 1,000,000, delay an annual concern admonish of 6%, serviceable to borrow if the budgeted coin estimate falls adown that raze.Any totalitys acquired on the thread of merit at the end of a month demand a coin concern acquittal in the later month.If the consequence coin estimate in a month exceeds the reserve estimate, the abundance totality is used to reward any totalitys acquired on the thread of merit.

Required

  • Prepare a register of coin inferions from merit sales for April and May 2020.
  • Prepare a register of coin disbursements for frequented symbolical acquisitions for April and May 2020.
  • Prepare a coin budget for April and May 2020 in columnar format.