MANAGERIAL ACCOUNTING

NAMA : IRA TJAHYANING PUTRI

NIM : 041724353042

Problem 10-20

1. Schedule of expected cash collections:

Month
April May June Quarter
From accounts receivable ............ $120,000 $ 16,000 $136,000
From April sales:
30% × $300,000 ....................... 90,000 90,000
60% × $300,000 ....................... 180,000 180,000
8% × $300,000 ......................... $ 24,000 24,000
From May sales:
30% × $400,000 ....................... 120,000 120,000
60% × $400,000 ....................... 240,000 240,000
From June sales:
30% × $250,000 ....................... 75,000 75,000
Total cash collections .................. $210,000 $316,000 $339,000 $865,000
2. Cash budget:
Month
April May June Quarter
Cash balance, beginning ........... $ 24,000 $ 22,000 $ 26,000 $ 24,000
Add receipts:
Collections from customers .. 210,000 316,000 339,000 865,000
Total available .......................... 234,000 338,000 365,000 889,000
Less disbursements:
Merchandise purchases ......... 140,000 210,000 160,000 510,000
Payroll ................................... 20,000 20,000 18,000 58,000
Lease payments ..................... 22,000 22,000 22,000 66,000
Advertising ........................... 60,000 60,000 50,000 170,000
Equipment purchases ............ — — 65,000 65,000
Total disbursements .................. 242,000 312,000 315,000 869,000
Excess (deficiency) of receipts
over disbursements ............... (8,000) 26,000 50,000 20,000
Financing:
Borrowings ........................... 30,000 — — 30,000
Repayments........................... — — (30,000) (30,000)
Interest .................................. — — (1,200) (1,200)
Total financing .......................... 30,000 — (31,200) (1,200)
Cash balance, ending ................ $ 22,000 $ 26,000 $ 18,800 $ 18,800
3. If the company needs a minimum cash balance of $20,000 to start each month, the loan cannot be
repaid in full by June 30. Some portion of the loan balance will have to be carried over to July.