1. Prepare a schedule of expected cash collections from sales, by month and in total, for the sec ond quarter. 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the sec ond quarter. 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Help me do excercise 9-1 particular . Thanks you
![cur in May of each year, as shown in the company's sales budget for the second quarter given
Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales oc--
CC
a
below:
April
May
June
Total
Rudgeted sales (all on account). . . . ....
$300,000
$500,000
$200,000
$1,000,000
From past experience, the company has learned that 20% of a month's sales are collected in
month of sale, another 70% are collected in the month following sale, and the remaining 10%
collected in the second month following sale. Bad debts are negligible and can be ignored.
February sales totaled $230,000, and March sales totaled $260.000.
Required:
1 Prepare a schedule of expected cash collections from sales, by month and in total, for the sec-
ond quarter.
2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the
accounts receivable as of that date.
EXERCISE 9-2 Production Budget [LO3]
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the ne=
four months as follows:
Sales
in Units
50,000
April
May
75,000
90,000
June.
80,000
July..
The
company
Is now in the process of preparing a production budget for the second quarter.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b476393-1d0f-4e3b-ac62-f7050dcdfb0c%2Fc37d8f8b-21ee-4c63-bd48-afa29561f4b3%2F6za5zx8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:cur in May of each year, as shown in the company's sales budget for the second quarter given
Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales oc--
CC
a
below:
April
May
June
Total
Rudgeted sales (all on account). . . . ....
$300,000
$500,000
$200,000
$1,000,000
From past experience, the company has learned that 20% of a month's sales are collected in
month of sale, another 70% are collected in the month following sale, and the remaining 10%
collected in the second month following sale. Bad debts are negligible and can be ignored.
February sales totaled $230,000, and March sales totaled $260.000.
Required:
1 Prepare a schedule of expected cash collections from sales, by month and in total, for the sec-
ond quarter.
2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the
accounts receivable as of that date.
EXERCISE 9-2 Production Budget [LO3]
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the ne=
four months as follows:
Sales
in Units
50,000
April
May
75,000
90,000
June.
80,000
July..
The
company
Is now in the process of preparing a production budget for the second quarter.
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