Clue #7- Cash Budget Equipment purchases during the quarter will be: . April $20,125 . May $5,250 Dividends of $6,125 wi

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Clue 7 Cash Budget Equipment Purchases During The Quarter Will Be April 20 125 May 5 250 Dividends Of 6 125 Wi 1 (51.47 KiB) Viewed 37 times

Clue 7 Cash Budget Equipment Purchases During The Quarter Will Be April 20 125 May 5 250 Dividends Of 6 125 Wi 2 (44.8 KiB) Viewed 37 times

Clue 7 Cash Budget Equipment Purchases During The Quarter Will Be April 20 125 May 5 250 Dividends Of 6 125 Wi 3 (18.3 KiB) Viewed 37 times

Clue 7 Cash Budget Equipment Purchases During The Quarter Will Be April 20 125 May 5 250 Dividends Of 6 125 Wi 4 (33.52 KiB) Viewed 37 times

Clue 7 Cash Budget Equipment Purchases During The Quarter Will Be April 20 125 May 5 250 Dividends Of 6 125 Wi 5 (17.04 KiB) Viewed 37 times

Clue 7 Cash Budget Equipment Purchases During The Quarter Will Be April 20 125 May 5 250 Dividends Of 6 125 Wi 6 (40.64 KiB) Viewed 37 times

Clue 7 Cash Budget Equipment Purchases During The Quarter Will Be April 20 125 May 5 250 Dividends Of 6 125 Wi 7 (40.64 KiB) Viewed 37 times

Clue 7 Cash Budget Equipment Purchases During The Quarter Will Be April 20 125 May 5 250 Dividends Of 6 125 Wi 8 (15.47 KiB) Viewed 37 times

Clue 7 Cash Budget Equipment Purchases During The Quarter Will Be April 20 125 May 5 250 Dividends Of 6 125 Wi 9 (18.22 KiB) Viewed 37 times

Clue #7- Cash Budget Equipment purchases during the quarter will be: . April $20,125 . May $5,250 Dividends of $6,125 will be paid in June. Management wants to maintain a minimum cash balance of $10,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $30,000. . Interest is 1% per month . Nordic can repay the loan at the end of the quarter if it is able to do so. The beginning cash balance has been given to you. What amount will Nordic Company plan to borrow (repay) during June? Note: Repayments must be listed in parenthesis.

Assets Liabilities & Owners' Equity Liabilities Owners' Equity Cash Accounts Receivable Inventory Buildings & equipment (net) . Nordic Company Balance Sheet March 31, 2020 Accounts Payable Capital Stock Retained earnings Total Assets Total liab. & Owners' equity IMPORTANT instructions! When entering your answers, make sure you format them in WITHOUT the $. For example: Positive Numbers: 123,000 NOT $123,000. Negative Numbers: (123,000) NOT ($123,000) $15,750 $84,000 $22,050 $374,675 $496,475 $32,025 $332,500 $131,950 $496,475

The marketing department has estimated sales in units as follows: March (actual) 21,000 April 24,500 May 29,750 June 31,500 July 17,500 The selling price of each unit is $5.

Clue #8- Balance Sheet You should have all the information in your various schedules. Ⓒ How much are the current assets at June 30th? Hide hint for Question 11 Hint #1: Definition of current assets: Assets expected to be converted to cash within one year or the operating cycle whichever is longer. Hint #2: Think about information found on the cash budget, cash collections schedule and the merchandise purchases budget. Hint #3: Check figure: Inventory at June 30 $15,750.

Hint #1: Beginning cash plus cash received less cash equals cash excess or deficiency. disbursed Hint #2: Borrowing occurs in $1,000 increments. Repayments are only made at quarter end and include interest for the time any funds were borrowed. Hint #3: Check figure: May ending cash balance = $10,586.

Clue #6- Cash Disbursements for Selling and Administrative Expenses Monthly selling and administrative expenses are budgeted as follows: . salaries and wages, $13,125 per month; shipping, 6% of sales; . advertising, $10,500 per month; • other expenses, 4% of sales; . Depreciation, including depreciation on new assets acquired during the quarter, will be $10,500 for the quarter. .

Clue #4- Merchandise Purchases Budget The company's gross margin percentage is 40% of sales (i.e. cost of goods sold is 60% of sales). Each month's inventory should equal 30% of the following month's cost of goods sold. Beginning inventory has been given to you.

Clue #2- Cash Collections Schedule Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales.