Cash budget financial accounting help please!?
Mayfield Company expects to have a cash balance of $46,000 on January 1, 2010. These are the relevant monthly budget data for the first two months of 2010. 1. Collections from customers: January $75,000, February $146,000 2. Payments to suppliers: January $40,000, February $75,000 3. Wages: January $30,000, February $40,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21,000, February $31,000. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $15,000, February $20,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $12,000 in cash. Mayfield has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $20,000. Complete the cash budget for January and February below. (List multiple items under receipts, disbursements and financing from largest to smallest amounts, e.g. 10, 5, 2.)
The cash budget alerts management to all of the following except?
The cash budget alerts management to all of the following except?a. Stock outs will cause customer dissatisfaction b. The cash balance will be very low c. Excess cash will be available for investment d. Significant capital acquisitions are planned
How to calculate the opening cash balance on the cash budget?
Opening cash balance for the month of May = closing cash balance for the month of April in general, Opening cash balance for period (n) = closing cash balance for period (n-1) hope I answered your question.
What's the best way to manage petty cash in a small business?
These are all fair questions, but I'm afraid you're over thinking this.Petty, by definition, means trivial or of little importance.Petty cash, as one might imagine, involves a tiny amount of cash on hand that makes paying for small incidental expenses easier, rather than issuing a company check.Obviously, you don't want cash sitting on the counter, even though it is a relatively small amount. On the other hand, you don't need a safe the size of Fort Knox either. A small locking box from any office supply store will alleviate any temptation. Nobody in the company is going to risk losing their job trying to break into a box that contains such a tiny amount of money. The lockbox can be stored in a desk (with a lock) or small office safe.From a security standpoint, it is best that one person be appointed the 'custodian' of the petty cash fund. That means that they are held responsible for the security of the fund and accountable for all of the disbursements made from it. The petty cash fund can be any amount the company deems is appropriate, but for most companies, I would think $100-$200 would be sufficient, depending upon how frequently it is used. There is no magic number. It could be $500 or $50 if you wanted it to.A log should be kept by the petty cash custodian to record all disbursements made from the fund. It could be a manual ledger or simple spreadsheet.Each disbursement should be evidenced with/supported by a receipt and the sum total of all receipts plus the remaining cash on hand should equal to the original petty cash fund at any given time. In the example above, I have $60.33 cash on hand + $139.67 in receipts = $200 (the original amount of the petty cash fund).When the fund gets 'low' (a judgement call), a check is cut to be cashed at the bank, which replenishes the fund to its original position ($200, in this example). The receipts serve as the supporting documentation for the check just cut. The disbursement may be approved by the office manager or other person in authority.A second custodian should be given the key to the lockbox and should be authorized to perform surprise audits on the fund to ensure receipts are properly accounted for and no misappropriation of funds is occurring. This person serves as the primary custodian, in the event the designated person is not on the premises at the time the disbursement is needed/required.That's petty cash, in a nutshell.I hope this is helpful.
Which is the best way to invest small amount of money? In India
A safe investment is one in which the element of risk is almost zero and high profits are a guarantee. Not everyone is capable of making big investments so here are a few low investment options which can yield a decent amount of profit.Equity : Besides high returns equity also offers the advantage of instant liquidity and flexibility in terms of redeeming as per your requirement.2. Certificates of Deposits : Issued by banks they offer an interest rate of fixed periods of time. it is a good way to park your money for known purchases in the near future.3. Money Market Funds : It is a mutual fund created for people who don’t want to lose any of their principal investment. They are not full proof but come with a strong protection of your underlying money.4. Preferred Stock : It is a stock issued by companies that has both an equity portion and a debt portion. Preferred stocks aren’t traded as often as regular stock but they hold a lower risk level.5. Investing in Gold : It is one of the safest and most evergreen methods of investment and due to its recent rise it is also a very safe choice of investment.6. Franchise : It is an authorization to run an outlet or sector of another company having their permission to use their methods and ways of business.Franchises can be tricky so here is one suggestion on a franchise you can take over which holds low risks and can almost assure high returns.KINDERDANCEBenefits are it requires no real estate, n construction or large capital and you can begin business within a very short period of time once you’re done training with Kinderdance.Additional benefits include you having the exclusive rights to use their copyrighted material. Kinderdance holds a very good standing.Depending on your investment budget this company is a very convenient choice. They offer 3 levels of franchise keeping in mind your personal requirements from this investment and also your capital capacity.for further details on this franchise: Click here or contact them at + 91 9880936612.
Planning costs / Master budgets?
Tobert Company, which sells electric razors, had $270,000 of cost of goods sold during the month of June. The company projects a 5 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $33,000, and the desired ending inventory balance for July is $23,000. Tobert pays cash to settle 80 percent of its purchases on account during the month of purchase and pays the remaining 20 percent in the month following the purchase. The accounts payable balance as of June 30 was $29,000. (a) Determine the amount of purchases budgeted for July. (b)Determine the amount of cash payments budgeted for inventory purchases in July
What is a good way to save money with a small salary?
I think I am Qualified for this answer -According to me there will be two step for saving money 1st one would be save money and second would be create more money.Save Money - :1. Put the money aside that you want to save then plan your month with the rest of the money.2. Set your priorities with rest of the money and work on them accordingly.3. separate your needs and wants and live on your needs not on your wants.4. Adjust your needs as well.Make more money -:Go for second income as well. As by only saving you can never save so much money with a small salary. try to work on some weekends, I would suggest to work on contract basis/freelancer so that you are not always bound to anyone take a project finish it, take rest for a while and enjoy with extra money that you earned and then go for next project when you are ready.Some points to remember -: 1. Never adjust so much that you kill your interests, put some money aside(let say 10%, money will grow with your salary) for the things in which you are interested. 2. Never adjust on a healthy diet (I have seen some of my friends doing so), if you are doing so you are killing yourself.Summary - So after considering all the three points mentioned above that's how it goes.Keep 10% aside for your things of interests.keep 20% aside for your diet.keep 30% aside for your needs(House rent, travelling fare, little work of maintenance of various things).keep 10% as buffer for any of the above.Now you can save 30%(which is really a significant amount) of your salary. at the end of the month(or whatever your cycle is for getting paid) what ever extra left from that 70%, save that too.chase your wants from extra income, I would never suggest to save that extra income unless you really need to.P.S. This is my own experience(personal and observed), this is a way of saving money but not the only way for it. Percentage that I mentioned above, works for me, you may plan accordingly.Thanks for A2A Manderas Hailu
If i have a small sum of money and I want to use it to pay off some credit, what would be the best option?
I have three credit cards I need to pay off, 500, 1300, and 3450. I have about 1000 dollars to put towards paying off some debt. would it be better to completely pay off the 500 one and then use the leftover sum for one of the others? or put all of it into the biggest debt? or put even amounts into all three? Thanks in advance!