A firm has projected sales in October, November, and December of P10,000, P20,000, and P30,000, respectively. The firm makes 20% of sales for cash and collects the balance one month following the sale. What is the firm’s total cash receipts in December? P18,000 P20,000 P22,000 P24,000

A firm has projected sales in October, November, and December of P10,000, P20,000, and P30,000, respectively. The firm makes 20% of sales for cash and collects the balance one month following the sale. What is the firm’s total cash receipts in December? P18,000 P20,000 P22,000 P24,000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 5MC

See similar textbooks

Related questions

Q: of the last three years. The units in year 1 beginning inventory were based on production of 500…

A: The variable costing income statement treats fixed manufacturing cost to be expensed during the…

Q: You were engaged as an independent auditor of Thomas Corporation . In the course of your examination…

A: A prior period adjustment is the correction of an accounting error that occurred in the past and was…

Q: How much is the company's expected cash disbursement for merchandise in the month of April? Multiple…

A: Cash Disbursement for Merchandise in the month of April = 40% of Merchandise April's purchase plus…

Q: CCC Partners is negotiating with its audit client, Muir Industries, for the audit fees for the…

A: According to section 142 of the Companies Act 2013, the pay of the company's auditors (other than…

Q: Use the following to answer questions 71-74: Pohl Company uses a standard cost system in which…

A: Lets understand the basics. Variable overhead spending variance is a variance between the rate at…

Q: Based on the data for

A: Quick ratio = Current assets - Inventory - Prepaid Expenses / Current liabilities Current…

Q: ezos Co. reported the following capital structure at the beginning of the current year= ordinary…

A: EPS is calculated by taking into account the earnings available for equity shareholders. WHERE,…

Q: The following information pertains to the Duggan Corporation: Beginning work-in-process inventory $…

A: A cost sheet is a method of allocating total costs into different categories. It helps to identify…

Q: A company working at 90% capacity is producing 13,500 units per year. It follows flexible budget…

A: The differential cost can refer to the difference in cost when there are two alternatives, it…

Q: eBook Question Content Area Before the year began, the following static budget was developed for the…

A: Budget means the expected value of future. Budget is not affected by the actual value as it is…

Q: (4) What is the average basepay for women? Using DAVERAGE function (5) What is the total basepay for…

A: Requirement 4 DAVERAGE Function returns the average in the given cell for selected records which…

Q: A printing machine initially costs ₱160,000. It can be sold for ₱15,000 at the end of its 6-year…

A: Depreciation formula for declining balance method =Book value of asset* depreciation rate

Q: Noora Company manufactures quality hair care product. The ingredients are combined in the mixing…

A: A weighted average is a method that analyzes the relative value of the variables in a collection of…

Q: what is the value of N?

A: Net pay is the pay which has been received by the employee from the employer in hand means net pay…

Q: GLOVERSVILLE Ltd. Prepare the following lease payments schedule for the lease of a machine from…

A: Depreciation under lease accounting is calculated by dividing the present value of minimum lease…

Q: Recreate the Post-Closing Trial Balance that wou require an entry, leave it blank.

A: A trial balance is the statement of debits credits that can only be prepared in case of double-entry…

Q: On November 1, 2021, a firm issues a $10,000 6% 6-month note payable. Interest is paid with the…

A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

Q: On April 1, Cyclone Company purchases a trencher for $320,000. The machine is expected to last five…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Kenjie owns shares of stocks of Luna Corporation ,a domestic corporation. He decided to sell the…

A: Donor's Tax shall be levied at 6% on the amount of gift/donation made over and above P250,000. For…

Q: A physical inventory or count of inventory should be taken around the _____ to make sure that the…

A: Inventory are valued at lower of cost or Net realizable value. Inventory are current assets and…

Q: Corinthians granted 5,000 share options to employees at an exercise price of P5 per share. The…

A: 2021 Compensation expense = 4500 options x P402.5 years× 1 year…

Q: 4. A private university professor who receives a basic monthly salary of P80,000.00, a living…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: HJK Corporation's demand for cash during a year's time is $500,000. Each time HJK sells securities…

A: Baumol's cash model is a model for cash management. This is similar to the EOQ model for inventory…

Q: Make a system for recording the cost of raw materials using the complete Perpetual method

A: Cost of raw materials is the cost of materials which are cost of the materials which the company…

Q: How much should be reclassified to Retained Earnings as a result of derecognizing the investment in…

A: Any increase or decrease in investment is an increase or decrease in revenue of the company and has…

Q: 0 46000 Net annual cash inflow 110000 146000 Estimated useful life 5 years 6 years…

A: Net Present Value is the Present value of cash inflows less initial investment . Initial Investment…

Q: Notre Company transfers a product from division N to division R. Variable cost of this product is…

A: A transfer price is based on market prices in charging another division, subsidiary, or holding…

Q: The balance sheets at the end of each of the first two years of operations indicate the following:…

A: Formula: Price-earnings ratio on common stock = ( Net income - Preferred dividend ) / Total shares…

Q: 2018 852,000 2017 912,000 Stal revenue expenses. osts of goods sold 402,000 $ 408,000 264,000 10,500…

A: The horizontal analysis is performed to compare the financial results of two different years.

Q: Required: Using excel, explain step by step on how you perform each questions below. a) What is the…

A: Calculate effective Interest rate using hit and trial method on: Date Amount 01-Jan-19…

Q: How many years should the right of use asset be depreciated?

A: The useful life of the equipment is 12 years The term of the lease is 10 years At the end of the…

Q: Jhonson Co. provided the following information regarding an automobile; Acquisition date April 1,…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub-parts for…

Q: Table 1: Cost and Production Data for the Mixing Department for May [Jadual 1: Data Kos dan…

A: Cost of units transferred out = Cost per equivalent unit * Units transferred out (For each component…

Q: SOR-493 Inc. is a manufacturing company. It has received a special order for 11,000 units of its…

A: Total unit product cost = $20 + $4 + $3 = $27 Additional fixed cost = $99,000

Q: o agents for e

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: The interest accrued on $7,500 at 6% for 90 days is: (Use 360 days a year.) Multiple Choice O O…

A: Solution: Principal amount = $7,500 Interest rate = 6% Period = 90 days

Q: Matthew Company issues 4,000 ordinary shares to its external lawyers for services related to the…

A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Hermione Ltd. produces magical wands. The budgeted production equals 500 magical wands and the…

A: In absorption costing the fixed production overheads are included in the cost of inventory and…

Q: 00 shares at P70 per shar P72 per share. What totall as a result of selling 15,00

Q: Parent corporation purchased 25% of the outstanding common shares of Subsidiary Limited for…

A: Journal entry is the act of keeping or making records of any transaction either economic or non…

Q: Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month…

A: A cash budget is prepared to estimate the total cash received and total cash disbursement. It is…

Q: On January 1, 2020, Riverbed Company sold 12% bonds having a maturity value of $850,000 for…

A: Formula: Amortization of bond premium = Interest payment - Interest expense where, Interest payment…

Q: depletion expense should be recognized for 2021? 550,000

Q: how much is the total impact to profit or loss as a result of the business model of ABC in holding…

A: The bond has been sold at 103. Hence it will be compared with the closing value to arrive at the…

Q: A dump truck was bought for P $ 30,000 six years ago. It will have a salvage value of $ 3,000 four…

A: Answer - Given, C0 =30,000 Cl = 3,000 L = 6+4 = 10yrs n = 6 i = 6% Resale value = 8,000.00

Q: iv) Calculate the Materials usage Budget for each material for each of months and in total. v)…

A: As per Requirement 3, you would have got January February March Units to be produced 10400…

Q: Factory Overhead Controllable Variance Bellingham Company produced 5,900 units of product that…

A: Variances are deviations of actual data from the budgeted data. These are calculated to identify and…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary sha…

A: When shares for investment are purchased, they are recorded at the cost. At the end of every…

Q: $2.00 $10.00 $20.00 overhead cost is mostly fixed. Only 30% of manufacturing overhe omizing the…

A: Minimum sales price that is break even is where there is no profit or loss. Minimum sale price is…

Q: Diversity Ltd. produces and sells a product called Star. The company is currently selling 9,560…

A: Under cost-profit volume analysis, the break-even point of a business is computed. Any sales above…

Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

A firm has projected sales in October, November, and December of P10,000, P20,000, and P30,000, respectively. The firm makes 20% of sales for cash and collects the balance one month following the sale. What is the firm’s total cash receipts in December?
1. P18,000 P20,000
2. P22,000 P24,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
A firm has projected sales in May, June, and July of P10,000, P20,000, and P30,000, respectively. The firm makes 20% of sales for cash and collects the balance one month following the sale. What is the firm’s total cash receipts in July?a. P18,000 c. P20,000b. P22,000 d. P24,000
A firm has an actual sales of P65,000 in April and P60,000 in May. It expects sales of P70,000 in June and P100,000 in July. Assuming that sales are the only source of cash inflows and that half of them are for cash and the remainder are collected evenly over the following two months, what are the firm’s expected cash receipts for July?
Air corporation has the following projected sales: P958,450.00 (October) P1,001,515.00 (November) P1,200,000.00 (December). Air corporation collects 50% of the month's sales in the month of sales, 35% in the month following sale, and 15% in the second month following the sale. What would be the cash collection in December? A) P143,767.50 B) P2,294,298.00 P1,837,730.00 P2,201,515.00
A firm has projected sales in May, June, and July of $100, $200, and $300, respectively. The firm makes 20 percent of sales for cash and collects the balance one month following the sale. The firm's total cash receipts in July a. are $200. b. are $220. c. are $180. d. cannot be determined with the information provided.
A firm has projected sales in May, June, and July of $100, $200, and $300, respectively. The firm makes 20 percent of sales for cash and collects the balance one month following the sale. The firm's total cash receipts in July a. are $200.b. are $220.c. are $180.d. cannot be determined with the information provided.
AXE Co. expects to have sales of P30,000 in January, P33,000 in February, and P38,000 in March. If 20 % of sales are for cash, 40 % are credit sales paid in the month following the sale, and 40 % are credit sales paid 2 months following the sale, what are the cash receipts from sales in March? *
A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. The firm makes 10 percent of its sales for cash, collects 40 percent of its sales one month following the sale, and collects the balance two months following the sale. The firm's total cash receipts in January is
A firm has actual sales of $65,000 in April and $60,000 in May. It expects sales of $70,000 in June and $100,000 in July and in August. Assuming that sales are the only source of cash inflows and that half of them are for cash and the remainder are collected evenly over the following 2 months, what are the firm's expected cash receipts for June, July, and August?
If a firm had credit sales of $1,550,000 for March and collected its sales 30% in the month of sale and 70% in the month following the sale, how much of March sales would be collected in cash in March?
Here is a forecast of sales by National Bromide for the first four months of 2022 (figures in $ thousands): Month 1 Month 2 Cash sales Sales on credit 16 110 25 130 Month 3 Month 4 19 100 15 80 On average, 51% of credit sales are paid for in the current month, 31% are paid in the next month, and the remainder are paid in the month after that. What is the expected cash inflow from operations in months 3 and 4? Note: Do not round intermediate calculations. Enter your answers in thousands and rounded to one decimal place. Items Month 3 Month 4 Expected Cash Inflow from Operations (in $ thousands)
Here is a forecast of sales by National Bromide for the first four months of 2022 (figures in $ thousands): Month 1 Month 2 Month 3 Month 4 Cash sales 35 44 38 34 Sales on credit 300 320 290 270 On average, 45% of credit sales are paid for in the current month, 25% are paid in the next month, and the remainder are paid in the month after that. What is the expected cash inflow from operations in months 3 and 4? Note: Do not round intermediate calculations. Enter your answers in thousands and rounded to one decimal place.