Pup Collar Corporation Is in the Process of Preparing Its

question 105

Essay

Pup Collar Corporation is in the process of preparing its cash budget for 2014. The beginning Cash balance is estimated to be $40,700. Sales on account during 2014 are estimated to be $500,000. Cash sales during 2014 are estimated to be $225,000. In July 2014, equipment will be purchased for cash; the cost of the equipment is estimated to be $145,000. Purchases of inventory on account during 2014 are estimated to be $265,000. Total operating expenses for 2014 are estimated to be $300,000. Ten percent of this amount represents Amortization Expense. All cash operating expenses are paid as incurred. The January 1, 2014, balance in Accounts Receivable is estimated to be $15,000; the January 1, 2014, balance in Accounts Payable is estimated to be $12,000. Accounts Receivable on December 31, 2014, is estimated to be 60% of the January 1, 2014, balance. Accounts Payable on December 31, 2014, is estimated to be 75% of the January 1, 2014, balance.
Prepare a cash budget for Pup Collar Corporation for 2014.

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Definitions:

Reason

The capacity of the human mind to analyze, assess, and form judgments through logical thinking.

Sisyphus

A figure from Greek mythology who was condemned to repeatedly roll a huge boulder up a hill, only for it to roll back down, symbolizing eternal struggle.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Unconscious

The part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.