2808 25 Carmen's Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $570,000 in December. Because Carmen's Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 27 percent drop in sales for January. The balance in the Accounts Receivable account on December 31 was $96,800 and is budgeted to be $72,300 as of January 31. Required a. Determine the amount of cash Carmen's Dress Delivery expects to collect from accounts receivable during January. Expected cash collection

2808 25 Carmen's Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $570,000 in December. Because Carmen's Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 27 percent drop in sales for January. The balance in the Accounts Receivable account on December 31 was $96,800 and is budgeted to be $72,300 as of January 31. Required a. Determine the amount of cash Carmen's Dress Delivery expects to collect from accounts receivable during January. Expected cash collection

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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Lipton Auto Parts, a family-owned auto parts store, began January with $10,300 cash . Management forecasts.Management forecasts that collections from credit customers will be $11,000 in January and $15,200 in February.The store is scheduled to receive $5,500 cash on a business note receivable in January. Projected cash payments include inventory purchases ($13,200 in January and $13,200 in February) and selling and administrative expenses ($3,100 each month). Requirement 1. Prepare Lipton Auto Parts's cash budget for January and February Requirement 2. How much cash will Lipton Auto Parts borrow in February if collections from customers that month total $14,200 instead of $15,200?
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Woodpecker Co. has $300,000 in accounts receivable on January 1. Budgeted sales for January are $964,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are a.$642,720 b.$1,071,200 c.$1,371,200 d.$856,960
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Woodpecker Co. has $292,000 in accounts receivable on January 1. Budgeted sales for January are $979,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are Oa. $1,367,200 Ob. $1,075,200 Oc. $645,120 Od. $860,160