Assume a merchandising company provides the following information from its master budget for the month of May: Sales $ 119,000 Cost of goods sold $ 84,000 Selling and administrative expenses $ 18,000 Accounts receivable, May 1st $ 16,000 Accounts receivable, May 31st $ 26,000 If all of the company's sales are on account, what is the amount of cash collections from customers included in the cash budget for May?

Assume a merchandising company provides the following information from its master budget for the month of May: Sales $ 119,000 Cost of goods sold $ 84,000 Selling and administrative expenses $ 18,000 Accounts receivable, May 1st $ 16,000 Accounts receivable, May 31st $ 26,000 If all of the company's sales are on account, what is the amount of cash collections from customers included in the cash budget for May?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Julia's Candy Co. reports the following information from its sales account and sales budget: Sales Expected Sales: O $30,000 O $82,500 O $112,500 O $120,000 May June July O $202,500 August September Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. Based on the information from Julia's, the total amount of cash expected to be received from customers in September is: -O+ 14 B % F6 D $105,000 93,000 F7 $90,000 6 110,000 120,000 F8 & F9
Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow: Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter $176,000 105,600 70,400 17,600 $ 52,800 Second Quarter $206,000 123,600 82,400 20,600 $ 61,800 Third Quarter $216,000 129,600 86,400 21,600 $ 64,800 Fourth Quarter $266,000 159,600 106,400 26,600 $ 79,800 Total $864,000 518,400 345,600 86,400 $259,200 Historically, cost of goods sold is about 60 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 10 percent. Required a. Prepare a pro forma income statement…
Vishnu
Assume a merchandising company provides the following information from its master budget for the month of May: $ 132,000 $ 86,000 $ 26,000 $ 19,800 $ 27,000 Sales Cash paid for merchandise purchases Selling and administrative expenses Accounts payable, May 1st Accounts payable, May 31st If the company maintains no beginning or ending merchandise inventory and makes all of its inventory purchases on account, what is the budgeted net operating income for May? Multiple Choice $39,800 $27,000 $25,600 $12,800
The following data have been taken from the budget reports of Kenyon Company, a merchandising company. Purchases Sales January $ 188,000 $ 128,000 February $ 188,000 $ 228,000 March $ 188,000 $ 268,000 April $ 168,000 $ 328,000 May $ 168,000 $ 288,000 June $ 148,000 $ 268,000 Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Purchases for the previous November and December were $178,000 per month. Employee wages are 10% of sales for the month in which the sales occur. Marketing and administrative expenses are 20% of the following month's sales. (July sales are budgeted to be $248,000.) Interest payments of $48,000 are paid quarterly in January and April. Kenyon's cash disbursements for the month of April would be: (CMA adapted) Multiple Choice $175,000. $318,400. $250,709. $310,879.
Sonoma Housewares Inc. Cash Budget For the Three Months Ending July 31 May June July Estimated cash receipts from: Cash sales $ $ Collection of accounts receivable Total cash receipts $ Estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes: Income tax Dividends Total cash payments Cash increase or (decrease) $ bala at beginning Cash balance at end of month Minimum cash balance Excess (deficiency) $
ssume a merchandising company provides the following information from its master budget for the month of May: Sales $ 126,000 Cost of goods sold $ 91,000 Selling and administrative expenses $ 25,000 Accounts receivable, May 1st $ 17,000 Accounts receivable, May 31st $ 36,500 If all of the company’s sales are on account, what is the amount of cash collections from customers included in the cash budget for May?
Assume a merchandising company provides the following information from its master budget for the month of May: Sales Cost of goods sold Selling and administrative expenses Accounts receivable, May 1st Accounts receivable, May 31st If all of the company's sales are on account, what is the amount of cash collections from customers included in the cash budget for May? Multiple Choice $109,000 $106,000 $129,000 $ 125,000 $ 90,000 $ 24,000 $ 16,000 $ 35,000 $125,000
Liza's budgets sales of $40,000 for May and $58.000 for June. Assume 60% of Liza's sales are for cash. The remaining 40% are credit sales; credit customers pay the entire amount owed in the month following the sale. Prepare the schedule of cash receipts from sales for June. LIZA'S Schedule of Cash Receipts from Sales June 58,000 Sales |Cash receipts from: Cash sales Collections of prior period sales Total cash receipts
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
The following budget information is available for the Arch Company for January Year 2: Sales Cost of goods sold Utilities expense Administrative salaries Sales commissions Advertising Depreciation on store equipment Rent on administration building Miscellaneous administrative expenses Multiple Choice O $321,000 All operating expenses are paid in cash in the month incurred. Compute the total budgeted selling and administrative expenses (excluding Interest) amount for January Year 2. $296,500 $272,000 $ 880,000 560,000 3,200 120,000 $323,200 5% of sales 24,000 54,000 64,000 14,000
Assume a company's sales budget for July estimates 17,000 units sold. The variable selling and administrative expense used for budgeting purposes is $4.00 per unit sold. The total budgeted cash disbursements for selling and administrative expenses in July is $139,000. The total fixed selling and administrative expenses included in the selling and administrative expense budget for July is $100,000. What is the amount of depreciation included in the selling and administrative expense budget for July? Multiple Choice O OOO $14,000 $32,000 $29,000 $47,000