At Torrey Company, past experience reveals that 10% of sales are for cash and the remaining 90% are on credit. Torrey Company expects to collect 30% of its credit sales in the month of sale, 50% in the month following sale, and 18% in the second month following sale. Which ONE of the following is part of the cash collections expected to be made in March? Cash collections of credit sales from the preceding December Cash collections of credit sales from the preceding September Cash collections of credit sales from the preceding January Cash sales from the preceding February

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A: Cash receipts are those which are collected by the entity from the sales of previous or current…

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A: ThevManagement will  prepare budget in order to estimate the future profit and loss from the…

Q: Prepare a schedule of cash receipts from sales for April, May, and June.

A: To prepare a schedule of cash receipts from sales for April, May, and June, we need to consider the…

Q: Jasper Company has 62% of its sales on credit and 38% for cash. All credit sales are collected in…

A: April May June  Cash sales 38%  $196,460  $200,260 $209,760   Sales on…

Q: Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales…

A: Cash budget is an estimate prepared by the company that shows the flow of cash in the business for a…

Q: A firm has actual sales in November of $1,363 and projected sales in December and January of $2,928…

A: Credit sales refer to the sales in which the customer is given some time to pay for the goods…

Q: Jasper Company has 65% of its sales on credit and 35% for cash. All credit sales are collected in…

A: Cash Budget:Cash Budget is prepared to analysis the cash transaction or cash flow of…

Q: The Professional Service Company expects 80% of sales for cash and 20% on credit. The company…

A: The objective of the question is to calculate the total cash receipts for the Professional Service…

Q: A company has the following collection pattern: month of sale, 30%; month following sale, 70%. If…

A: Cash collection budget :— This budget is prepared to estimate the cash collection of sales from the…

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A: Budgeting: It is a process to prepare the financial statement by the manager to estimate the…

Q: Bark & Purr Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for…

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

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A: Cash budget is one of the important budget being prepared in business. It shows all cash inflows and…

Q: Mercurius forecasts the following sales figures for the next four months. June July August…

A: The companies usually provide the goods or render services to the customer to earn profit. The…

Q: Halifax Shoes has 34% of its sales in cash and the remainder on credit. Of the credit sales, 65% is…

A: Cash budget: It implies to a financial estimation that reflects all the inflows and outflows of cash…

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A: Computation of the cash balance at the end of January:Cash balance, January 1$25,000Add: Cash…

Q: Crane Industries expects credit sales for January, February, and March to be $281,600, $332,800, and…

A: Step 1: Calculate Cash Collections for Each MonthJanuary:Collected in January (75% of January sales)…

Q: Bruno Industries expects credit sales for January, February, and March to be $200,000, $260,000, and…

A: Cash collection budget :— This budget is prepared to estimate the collection of sales from customers…

Q: Jasper Company has 63% of its sales on credit and 37% for cash. All credit sales are collected in…

A: Lets understand the basics.Management prepares budget in order to estimate future profit and loss…

Q: Frontier Ltd., a leader in solar technology, makes all sales on credit, offering terms 2/10 net 40.…

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Q: chedule of Cash Collections from Sales or the Three Months Ending December 31 October November…

A: Schedule of cash collections shows the cash receipts and cash inflows from different customers.…

Q: A company's history indicates that 20% of its total sales are for cash and the remaining 80% are on…

A: Cash receipts means the expected money collected by the entity during a period from the sales of the…

Q: Carla Vista Industries expects credit sales for January, February, and March to be $211,200,…

A: Step 1:Understanding meaning of budget:- Management prepares budget in order to estimate future…

Q: Ratchet Manufacturing anticipates total sales for August, September, and October of $300,000,…

A: Formula: Cash collection amount = Sales value x Cash collection ratio

Q: Eastern Auto Parts Incorporated has 20 percent of its sales paid for in cash and 80 percent on…

A: Cash receipts schedule are those schedule how much cash we collected in a particular months or…

Q: Neon Inc.’s forecast sales for July is $72,000. It has $15,000 in accounts receivable at the end of…

A: The objective of this question is to calculate the amount of accounts receivable at the end of July…

Q: The Overland Company is preparing its cash budget for the month of June. The following information…

A: Formula: Cash collection amount = Credit sales x Cash collection %

Q: The Professional Service Company expects 70% of sales for cash and 30% on credit. The company…

A: Credit Sales of June: 70% will be collected in June. 25% will be collected in July. 5% are not…

Q: At the end of September a company has cash balance of $800, trade receivables of $12000 and trade…

A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…

Q: ober ember ember 44,000 39,000 64,000 ience has shown that 30 percent of sales are collected in the…

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Q: Jasper Company has 59% of its sales on credit and 41% for cash. All credit sales are collected in…

A: Cash Budget: Cash Budget is prepared to analysis the cash transaction or cash flow of business.…

Q: Schedule of Cash Collections of Accounts Receivable Office World Inc. has "cash and carry" customers…

A: Effective resource allocation includes the use of budgeting to allocate money, labor, and supplies.…

Q: Cash Collections for Belcher Motors found that 35% of its sales were cash and the remaining 65% are…

A: The cash collection during the quarter depends on the percentage of cash sales and credit sales and…

Q: Power Ridge Corporation has forecast credit sales for the fourth quarter of the year as follows:…

A: Cash receipt schedule is an important tool any firm can use. One can estimate the receipt of the…

Q: Simpson Glove Company has made the following sales projections for the next six months. All sales…

A: Budget means the expected value of future. Budget will be compared with actual value and variance is…

Q: Jasper Company has 65% of its sales on credit and 35% for cash. All credit sales are collected in…

A: Credit sales will be collected in next month following the sale. Thus March month credit sales will…

Q: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is…

A: Cash sales in August = Total sales x 30% = $95,000 x 30% = $28,500

Q: Assume receivables of $20,000 at the start of the January are all collected during the month; if…

A: When a sale is made and cash is received at the time of sale it is referred to as cash sale, however…

Q: Neon Inc.’s forecast sales for July is $72,000. It has $15,000 in accounts receivable at the end of…

A: The objective of the question is to calculate the amount of accounts receivable at the end of July…

Q: Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers…

A: A cash sale is a sale where the consideration(money) is received immediately for the goods sold or…

Q: alifax Shoes has 33% of its sales in cash and the remainder on credit. Of the credit sales, 65% is…

A: Companies gives credit to the customers and customers pay later on so cash money is blocke in credit…

Q: Jasper Company has 59% of its sales on credit and 41% for cash. All credit sales are collected in…

A: Cash collection budget :— This budget is prepared to estimate the collection of sales from…

Q: X-Tel budgets sales of $96,000 for April, $144,000 for May, and $102,000 for June. Sales are 50%…

A: In order to increase the sales revenue the business entities sold their goods on a credit basis.…

Q: Schedule of Cash Collections of Accounts Receivable Pet Supplies Inc., a pet wholesale supplier, was…

A: The cash collection schedule is prepared by the company when the company sells its goods on credit.…

Q: Jasper Company has 62% of its sales on credit and 38% for cash. All credit sales are collected in…

A: The cash collection schedule is prepared to estimate the cash collection from customers during the…

Q: Jasper Company has 61% of its sales on credit and 39% for cash. All credit sales are collected in…

A: Budgets are the estimates or forecasts for future period and expressed in quantitative form of…

Q: The management of Huges Co. estimates that credit sales for January, February, March and April will…

A: Given, January Sales is $180,000 February Sales is $210,000 March Sales is $230,000 April Sales is…

Q: J. Lo's Clothiers has forecast credit sales for the fourth quarter of the year: Fourth Quarter…

A: Clothiers for the fourth quarter, has the following amounts:September (actual): $73,000October:…

Q: Jasper Company has 62% of its sales on credit and 38% for cash. All credit sales are collected in…

A: Cash receipts refers to cash inflow. All cash sale is to be recorded in the month of sale and all…

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.