1. The following various elements relate to Whitfield Inc's cash budget for April ofthe current year. For each item, determine the amount of cash that Whitfieldshould receive or pay in April. Be sure to show total cash for a, b, and c and allcalculations for d.a. At $28 each, unit sales are 5,000 and 6,000 for March and April,respectively. Total sales are typically 40% for cash and 60% on credit;30% of credit sales are collected in the month of sales with the balancecollected the next month.b. Merchandise purchases were $45,000 and $78,000 for March and April,respectively. Typically, 20% of total purchases are paid for in the monthof purchase with a 5% discount. The balance is paid (without discount) inthe following month.c. Fixed administrative expenses, which total $11,000 per month, are paidin the month incurred. Variable administrative expenses amount to 20%of total monthly sales revenue, one half of which is paid in the monthincurred with the balance paid in the following month.d. A store asset originally costing $8,000, on which $6,000 of depreciationhas been taken, is sold for cash at a loss of $400

a. Sales:March sales: 5,000 units * $28 = $140,000 April sales: 6,000 units * $28 = $168,000 Total…

Answered: 1. The following various elements…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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