All sales at Alaska Company are on credit. The company is preparing a cash budget for November. The following information on accounts receivable collections is available from customer payment history: Percent of current month's sales collected this month Percent of prior month's sales collected this month Percent of sales two months prior to current month collected this month Percent of sales three months prior to current month collected this month The remaining 2 percent is not collected and is written off as bad debts. Sales to date are as follows: November (estimated) October September August $ 370,000 410,000 340,000 480,000 30% 60 5 3 Required: What are the estimated cash receipts from accounts receivable collections in November?

All sales at Alaska Company are on credit. The company is preparing a cash budget for November. The following information on accounts receivable collections is available from customer payment history: Percent of current month's sales collected this month Percent of prior month's sales collected this month Percent of sales two months prior to current month collected this month Percent of sales three months prior to current month collected this month The remaining 2 percent is not collected and is written off as bad debts. Sales to date are as follows: November (estimated) October September August $ 370,000 410,000 340,000 480,000 30% 60 5 3 Required: What are the estimated cash receipts from accounts receivable collections in November?

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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All sales at Alaska Company are on credit. The company is preparing a cash budget for November. The following information on accounts receivable collections is available from customer payment history: Percent of current month’s sales collected this month 20% Percent of prior month’s sales collected this month 62 Percent of sales two months prior to current month collected this month 10 Percent of sales three months prior to current month collected this month 5 The remaining 3 percent is not collected and is written off as bad debts. Sales to date are as follows: November (estimated) $ 270,000 October 610,000 September 240,000 August 680,000 Required: What are the estimated cash receipts from accounts receivable collections in November?
The budget director of Heather's Florist has prepared the following sales budget. The company had $260,000 in accounts receivable on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Complete the schedule of cash receipts by filling in the missing amounts. July August September Sales Budget Cash sales Sales on account Total budgeted sales $ 71,000 $ 71,000 $ 72,000 95,000 111,000 135,600 $ 166,000 $ 182,000 $ 207,600 Schedule of Cash Receipts Current cash sales Plus: Collections from accounts receivable Total budgeted collections $ 331,000 $ 166,000 $ 183,000
Cloudy Company had the following historical collection pattern for its credit sales: 70% collected in the month of sale 12% collected in the first month after month of sale 10% collected in the second month after month of sale 5% collected in the third month after month of sale 3% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below: July August September October November December The estimated cash collection by Cloudy Company during September from credit sales in July, August, and September is: Multiple Choice $83,840. $100,160. $90,880. $ 92,000 $ 104,000 $ 116,000 $ 128,000 $ 140,000 $ 122,000 $64,400.
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Justin Company's budget includes the following credit sales for the current year: September, $41,000; October, $52,000; November, $46,000; December, $48,000. Credit sales are collected as follows: 20% in the month of sale, 55% in the first month after sale, 22% in the second month after sale, and 3% is uncollectible. How much cash can Justin expect to collect in November as a result of current and past credit sales? Multiple Choice $35,420. $46,820. $49,620. $44,220. $46,000.
The following data are from the budget of Ritewell Publishers. Half the company's sales are transacted on a cash basis. The other half are paid for with a 1-month delay. The company pays all of its credit purchases with a 1-month delay. Credit purchases in January were $140, and total sales in January were $290. TT February March $ 420 April Total sales $ 440 $ 400 125 135 115 Cash purchases Credit purchases Labor and administrative purchases Taxes, interest, and dividends Capital expenditures 95 85 95 85 85 85 65 65 65 210 Complete the following cash budget. (Leave no cells blank. Enter '0' when necessary. Negative amounts should be indicated by a minus sign.) February March Aprit Sources of cash Collections on current sales Collections on amounts receivable Total sources of cash 0 $ Uses of cash Payments of accounts payable Cash purchases o search
Peach Corporation's only cash receipts are those derived from customer sales. Peach makes both cash sales and sales on account. For its credit sales, Peach collects 50% in the month of the sale, 40% in the month following the sale, and 10% in the second month following the sale. Peach is preparing its cash budget for the upcoming year. Sales on account for the month of March are budgeted at $150,000. The budgeted accounts receivable balance on March 1 is $113,000, of which $90,000 represents uncollected sales made in February and $23,000 represents uncollected sales made in January. If Peach's total cash receipts for the month of March are budgeted at $205,000, what are Peach's budgeted cash sales during March? O $17,000 O $35,000 $53,000 $71,000 O None of the above
Cheyenne Company has budgeted the following information for June: Cash receipts Beginning cash balance Cash payments Desired ending cash balance If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company had no debt before June 1. The amount of interest paid on July 1 would be: Multiple Choice $590. $ 339,000 22,000 382,000 42,000 $476.
The budget director of Heather’s Florist has prepared the following sales budget. The company had $50,000 in accounts receivable on July 1. Heather’s Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required Complete the schedule of cash receipts by filling in the missing amounts. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet.
Mass Company has $9,500 in cash on hand on January 1 and has collected the following budget data: E (Click the icon to view the budget data) Assume Mass has cash payments for selling and administrative expenses including salaries of $60,000 plus commissions of 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $9,000 Prepare a cash budget for January and February. Will Mass need to borrow cash by the end of February? Begin by preparing the cash budget for January, then prepare the cash budget for February (Complete all input fields. Enter a "0" for any zero balances.) Mass Company Cash Budget Two Months Ended January 31 and February 28 January Beginning cash balance Cash receipts Data Table Cash available Cash payments: Purchases of merchandise inventory January February Selling and administrative expenses Sales 1.340,000 $ 690,000 Total cash payments Cash receipts from customers 851 420 871,100 Ending cash balance before financing Cash payments…
Foyert Corporation requires a minimum $7,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $7,000 is used to repay loans at month-end. The cash balance on October 1 is $7,000, and the company has an outstanding loan of $3,000. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. (please see picture for other info) October November December Cash receipts $ 23,000 $ 17,000 $ 21,000 Cash payments 25,500 16,000 15,000 Prepare a cash budget for October, November, and December.
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