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Question 1. Prepare a budget for this year for the Administrative Department at Tom’s Toyota Company...

Question 1. Prepare a budget for this year for the Administrative Department at Tom’s Toyota Company based on the following information:

                                    Last Year        Forecasting Assumption         Budget for this Year

            Salaries            $75,000           2% increase                             ___________

            Stationary        $     900           1% decrease                            ___________

            Telephone        $ 2,000           3% increase                            ___________

            Electricity        $ 3,000           2.5% increase                        ___________

            Office Rent     $12,000           2% increase                            ___________

            Depreciation    $ 4,000           no change                                ____________

                        Total: $96,900                                   

Question 7. Webster’s Discount Appliances expects sales of $5,000, $5,000, and $10,000 during April, May, and June (big sale in June). To build business, Webster let’s all customers buy on credit, and all do so. In the past, 15% of Big Bob's sales have been collected during the month of sale, 70% are collected the following month, and 10% the month after that. If this trend continues, what will be Webster’s total cash collections in the month of June?

Question 8. Little Louie’s expects to have $100 in cash on hand at the beginning of June, and the company's target cash balance is $100. Net cash flow for June is minus $300. Assuming that Little Louie’s borrows to meet short‑term cash needs and pays back as soon as surplus cash is available, what will be the company's ending cash balance after financing at the end of June?

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Answer #1

Dear Student, only one question is allowed at a time. I am answering the first question

1)

Calculations A B C = 1 + B D = A x C
Particulars Last Year Forecasting Assumption Nature of Forecasting Multiplying Factor Forecasted Value
Salaries    75000 2.00% Increase 1.020 76500
Stationary 900 -1.00% Decrease 0.990 891
Telephone 2000 3.00% Increase 1.030 2060
Electricity 3000 2.50% Increase 1.025 3075
Office Rent   12000 2.00% Increase 1.020 12240
Depreciation 4000 0.00% No Change 1.000 4000
Total 98766
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