**Expected Sales Table** A company has the following budgeted sales in each quarter of the year 2024: | Quarter | Expected Sales | |---------|----------------| | Q1 | $240,000 | | Q2 | $280,000 | | Q3 | $300,000 | | Q4 | $420,000 | **Cash Collection Information** 1. Of all sales, 70% are on credit. 2. 60% of credit sales are collected in the quarter in which the sale is made; 30% are collected in the following quarter, and 10% are collected in the second quarter after the sale. 3. Accounts Receivable is estimated to be $63,000 on December 31, 2023. The company expects to collect all outstanding receivables in the first quarter of 2024. **Question** What is the total cash collection for the second quarter of 2024? **Answer Options:** - None of the answers are correct - $231,000 - $168,000 - $252,000 - $315,000

Expected Sales Table A company has the following budgeted sales in each quarter of the year 2024: | Quarter | Expected Sales | |---------|----------------| | Q1 | $240,000 | | Q2 | $280,000 | | Q3 | $300,000 | | Q4 | $420,000 | Cash Collection Information 1. Of all sales, 70% are on credit. 2. 60% of credit sales are collected in the quarter in which the sale is made; 30% are collected in the following quarter, and 10% are collected in the second quarter after the sale. 3. Accounts Receivable is estimated to be $63,000 on December 31, 2023. The company expects to collect all outstanding receivables in the first quarter of 2024. Question What is the total cash collection for the second quarter of 2024? Answer Options: - None of the answers are correct - $231,000 - $168,000 - $252,000 - $315,000

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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1
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)
Reck Chocolates reports the following information from its sales budget: Expected Sales amount: July RM 97,000 August RM117,000 September RM127,000 Cash sales are normally 30% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is: a.120,000. b.38,100. c.127,000. d.81,900. e.208,900.
3
The total budgeted sales of Obaapa Ltd for April, the first month of the second quarter in 2021 were GHS950,000. Sales are expected to increase by GHS50,000 in each month. Cash sales for each month are GHS100,000 and the remaining are credit sales. All the products are sold at a mark up of the cost plus 25 per cent. On average, Obaapa Ltd collects 50 per cent of the credit sales in the month of sale and 45 per cent in the month following sales. The remainder is uncollectible. Determine the budgeted total cash receipt for each month of the second quarter of 2021 and the expected account receivables at the end of the quarter.
The following forecasted information was taken from the books of Pakhama Enterprises. Month 2020 Budgeted Sales(R)January 120 000February 140 000March 168 000April 144 000May 128 000June 100 000 The following information is also provided for Pakhama Enterprises:60% of all sales is on credit.Debtors are expected to pay their debts as follows:• 70% in the first month after the sale (after 30 days)• 20% in the second month after the sale (after 60 days)• 7 % in the third month after the sale (after 90 days)• 3% is irrecoverable Credit losses are written off at the end of the month in which the last instalment is received.Debtors will amount to R104 994 on 1 Jan…
BCAS Ltd is developing a cash budget for April, May and June 2022, and the following information was gathered: Cash Receipts 1 Sales revenue for February and March 2022 are $200,000 and $180,000 respectively. The forecasted sales revenue for April, May and June 2022 are $170,000, $220,000 and $280,000 respectively. Historically, 30% of the firm’s sales are in cash, 60% are collected in the next month, and the remaining 10% are collected in the second month following the sale. 2 Monthly rental income received is $60,000. 3 Interest income of $10,000 will be received in May 2022. Cash Disbursements 4 The expected purchases are $150,000, $110,000 and $190,000 for the months of April, May and June 2022 respectively. The company pays all its purchases in the month of purchase. 5 Monthly salaries paid is $70,000. 6 Commission is paid to its salesman at 2% of current month’s sales. 7 Renovation of all retail outlets amounting to $400,000…
Mooney Equipment is putting together its cash budget for the following year and has forecasted expected cash collections over the next five quarters (one year plus the first quarter of the next year). The cash collection estimates are based on sales projections and expected collection of receivables. The sales and cash collection estimates are shown in the following table (in millions of dollars): Q1 Q2 Q3 Q4 Q5 Sales $1,100 $1,400 $1,450 $1,250 $1,500 Total cash collections $1,100 $1,150 $1,200 $1,200 You also have the following information about Mooney Equipment: • In any given period, Mooney’s purchases from suppliers generally account for 72% of the expected sales in the next period, and wages, supplies, and taxes are expected to be 15% of next period’s sales. • In the third quarter, Mooney expects to expand one of its plants, which will require an additional $1,072 million investment. • Every quarter, Mooney pays $60 million in interest and…
Problem 1: ABC Corporation is preparing its sales and receivable budget for the year 2022. Details are as follows: • The sales during the 4th quarter of 2021 is 30,000 units and the selling price per unit is P500 per unit. Units to be sold is forecasted to increase by 5% per quarter while the sales price for 2022 will be 2% higher than the previous P500 per unit. • Of the sales per quarter, 55% are cash sales while the remaining credit sales. The credit sales are expected to be settled as follows: 5/9 will be collected during month of sales, 3/9 will be collected the month after month of sales, and the remaining will be written off two months after month of sale. The forecasted receivable balance on Jan. 1, 2022 is P3,500,000, 90% of which is expected to be collected during the first quarter while the remaining will be written off during the second quarter of 2022. Required: 1' Quarter 2nd Quarter 3rd Quarter 4th Quarter Sales 1. 2. 3. 4. Receivable balance as of the end of 5. 6. 7. 8.…
The following are the total sales of Top Class Ltd for the past three months of 2021Month April May JuneTotal Sales R900 000 R700 000 R500 000The budgeted sales figures for the next three months are expected as followsMonth July August SeptemberTotal Sales R825 000 R760 000 R920 000Additional information1) 40% of all sales are made in cash.2) Credit sales for October 2021 are expected to be R450 000.3) Debtors are collected as follows.• 15% of outstanding amounts are collected during the month following the month of sale(i.e.: 30 days). A discount of 4,5% is offered for early settlement of accounts.• 60% is collected in the subsequent month (i.e.: 60 days).• 20% is collected in the subsequent month (i.e.: 90 days).• The balance is irrecoverable and needs to be written off.REQUIRED:Prepare a schedule of forecasted receipts from customers (cash and credit) for the period 1 July 2021to 31 October 2021.Show all workingsRound to the nearest Rand
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Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: April May June Credit sales $ 312,000 $ 292,000 $ 352,000 Credit purchases 120,000 143,000 168,000 Cash disbursements Wages, taxes, and expenses 43,200 10,700 62,200 Interest 10,200 10,200 10,200 Equipment purchases 72,000 134,000 0 The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2020, credit sales were $182,000, and credit purchases were $122,000. Using this information, complete the following cash budget. (Do not round intermediate calculations.)