Professional blog

Question 1 (16 Marks)

Green Friends Ltd is a garden design and landscaping business that started operations on 1 September 2020. The following information has been provided by the firm.

In September, cash sales were $15,000 and credit sales $35,000. Total expected sales in the following three months are: $70,000 in October; $78,000 in November; and $82,000 in December. The company expects 30% of the sales of each month to be cash sales and the remainder credit sales. Credit sales are expected to be collected 50% in the month of the sale, 30% in the next month, and 20% in the following month.

All purchases of inventory are on credit. Purchases of inventory in September were $40,000. The company estimates purchases in the following three months to be: $32,000 in October, $38,000 in November and $42,000 in December. Purchases are paid 50% in the month of purchase, and 50% in the following month.

Wages expense is estimated to be $18,000 in October, $20,000 in November and $22,000 in December, paid in cash.

Other operating expenses are budgeted to be $24,000 in October, $25,000 in November and $28,000 in December, paid in cash.    

Depreciation expenses of $900 per month are expected.

The cost of sales is estimated as 40% of sales revenue each month.

On 1 September, equipment costing $12,000 was purchased. The equipment will be paid for in two equal instalments in October and November.

Estimated cash received to be from the sale of a block of land in November is $56,000 (book value)

The cash balance at 1^st October 2020 was $3,500

Required:

1. Prepare a Budgeted Income Statement for the period October – December 2020.

2. Prepare a schedule of estimated receipts from debtors (accounts receivable) for the months of October, November and December 2020. 

3. What is the amount of accounts receivable at 31^stDecember 2020?  

4. Prepare a cash budget for October, November and December 2020

5. What is the amount of accounts payable at 31^stDecember 2020?   

6. How can you improve the cash budget?

Question 2 (15 Marks)

B&B produces and sells one single product: BT5. The production capacity of B&B is 65,000 units. Annual sales volume expected in 2021 is 50,000 units.

The following information is estimated for 2021: selling price per unit: $25, variable cost per unit: $16, and annual fixed costs: $324,000.

Required:

Answer the following questions in the spaces provided:

1. What is the available production capacity?

2. What is the contribution margin per unit?

3. What is the contribution margin ratio?

4. What is the break-even-point (BEP) in units?

5. What is the BEP in sales dollars?

6. Prepare a contribution margin income statement for the expected sales in 2021.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Just received very good marks. Very happy with his service. Answer all questions nicely and all require points are included and good eassy writing sty …

User ID: 6***34 Singapore

I got my assignment delivered before the deadline, and it was an excellent job done.

User ID: 8***21 Nigeria

great work and need more concise and explanation, provide feedback as soon as possible

User ID: 8***48 Saudi Arabia

I was impressed with the adjustment made to the report to suit the APA 7 edition style with citations for all answers.

User ID: 8***17 United States

Thank you once again excellent paper, will use service again, extremely efficient understood the requirements.

User ID: 7***88 Melbourne, Australia

Thank you for the constant support and understanding and work towards my project

User ID: 8***56 Melbourne, Canada

the expert who worked on this assignment did a great job of following all the instruction I provided for this assignment and delivered it perfectly. G …

User ID: 3***04 Melbourne, Bahrain

Good not bad. But if the solution with more analysis and explanation will be great

User ID: 8***49 Melbourne, Saudi Arabia

Perfect work was delivered by the expert, I have been using my assignment help for quite some time now and it has been very helpful in providing excel …

User ID: 8***14 Mississauga, Canada

Assignment was completed as requested! Was very organized and neat. Included all the parts!

User ID: 2***50 Kitchener, Canada

It was a good one thank you. I did have to correct some of the mistakes. After that, everything was good.

User ID: 6***66 Kitchener, United States

Fully trust this service with perfect score. Would recommend to friends and family. Keep up the good work. Will definitely use the service.

User ID: 6***65 Hughesdale, Australia

Perfect score. Great results and the marks was as expected. I trust this service fully with all my assessments.

User ID: 6***65 Hughesdale, Australia

Great results and the marks was as expected. I trust this service fully with all my assessments.

User ID: 6***65 Hughesdale, Australia

Satisfied with the assignment solution. All is correct, no amendment needed.Thanks

User ID: 6***60 Hughesdale, United States

Fast and prompt assignment writing services. The writer was knowledgeable in the particular subject/topics. Will engage them again for future assignme …

User ID: 5***78 Hughesdale, Singapore

I manage to add some good point from this presentation to my assignment so thank you so much for your help I’m awaiting marks at the moment

User ID: 2***49 Hughesdale, New Zealand

It was good work overall and I love it I will as I said always recommended people if you need help t contact them keep up the good work

User ID: 7***37 Hughesdale, United States

Content is related to my view point and all points are well explained with the help of examples

User ID: 8***83 Hughesdale, Canada

Quality work and on time. Great site when you are crunched for time. I will use it in the future.

User ID: 8***55 Hughesdale, United States