ABC Company has a cash balance of $75,000 at the beginning of March and having regard to thefollowing information:Creditors give l-month creditii. Salaries are paid in the current monthiii. Fixed overheads are paid one month in arrears and include a charge for depreciation of$5,000 per monthiv. Variable overheads are paid two months in arrearsv. Credit sales are settled as follows: 40% in the month of sale, 45% in the next month and 12%in the following month. The balance represents bad debts.i.MonthCash SalesCredit SalesPurchases$$74,00082,00080,000$55,200JanuaryFebruaryMarch20,00022,00025,00061,20060,00069,00075,000AprilМay90,00 0100,000SalariesFixed OverheadsVariable Overhead進推調JanuaryFebruaryMarch9,0009,0009,50030,00030,00030,00045,00050,00055,000AprilМay9,50010 ,00032,00032,00060,00070,000АССТ3603Required:А.Prepare the Debtors Collection Schedule for ABC company for March to May.В.Prepare the Cash Budget for April and May.

Cash budget describes the budgeted cash inflow as well as cash outflow on an estimation basis. It…

ABC Company has a cash balance of $75,000 at the beginning of March and having regard to the following information: i. Creditors give 1-month credit ii. Salaries are paid in the current month iii. Fixed overheads are paid one month in arrears and include a charge for depreciation of $5,000 per month iv. Variable overheads are paid two months in arrears v. Credit sales are settled as follows: 40% in the month of sale, 45% in the next month and 12% in the following month. The balance represents bad debts. Month Cash Sales Credit Sales Purchases $ $ 74,000 82,000 80,000 90,00 0 100,000 $ January February March 20,000 22,000 25,000 55,200 61,200 60,000 69,000 75,000 April Мay Salaries Fixed Overheads Variable Overhead January February March 9,000 9,000 9,500 9,500 10 ,000 30,000 30,000 30,000 32,000 32,000 45,000 50,000 55,000 60,000 70,000 Аpril Мay

ABC Company has a cash balance of $75,000 at the beginning of March and having regard to the following information: i. Creditors give 1-month credit ii. Salaries are paid in the current month iii. Fixed overheads are paid one month in arrears and include a charge for depreciation of $5,000 per month iv. Variable overheads are paid two months in arrears v. Credit sales are settled as follows: 40% in the month of sale, 45% in the next month and 12% in the following month. The balance represents bad debts. Month Cash Sales Credit Sales Purchases $ $ 74,000 82,000 80,000 90,00 0 100,000 $ January February March 20,000 22,000 25,000 55,200 61,200 60,000 69,000 75,000 April Мay Salaries Fixed Overheads Variable Overhead January February March 9,000 9,000 9,500 9,500 10 ,000 30,000 30,000 30,000 32,000 32,000 45,000 50,000 55,000 60,000 70,000 Аpril Мay

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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