Need answer AURORA BAKING IS PREPARING ITS CASHBUDGET AND EXPECTS TO HAVE SALES OF$60,000 IN JANUARY, $70,000 IN FEBRUARY,AND $70,000 IN MARCH. IF 20% OF SALES AREFOR CASH, 40% ARE CREDIT SALES PAID IN THEMONTH AFTER THE SALE, AND ANOTHER 40%ARE CREDIT SALES PAID 2 MONTHS AFTER THESALE, WHAT ARE THE EXPECTED CASHRECEIPTS FOR MARCH?

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Answered: AURORA BAKING IS PREPARING ITS CASH…

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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The Dunce Company expects to have sales of 30,000 in January, 33,000 in February, and 38,000 in March. If 20 percent of sales are for cash, 40 percent are credit sales paid in the month following the sale, and 40 percent are credit sales paid two months following the sale, how much is the expected cash receipts in March?
Discus Productions needs to know its anticipated ensh inflows for the next quarter by month Cash sales are 10% of total sales each month. Historically, sales on sccount have been collected as follows 60% in the month of ale, 30% in the month after the sale, and the reurining 10% two months after the sale. Sales for the quarter are projected as follows: April, S120,000: May, S100,000; and June, 590,000. Accounte receivable on March 31 were S60,000, The expected caalh collections of Discn Productions for June are Oa $92,000. Oh S89.000. Oe $91.200. Od 595.400.
Chatsworth Company Month Expected Sales July $40,000 August $50.000 September $30,000
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Limitless Styles has a 45 day accounts payable period. The firm has expected sales of $900, $1,200, $1,900, and $2,600, respectively, by quarter for the next calendar year. The cost of goods sold for a quarter is equal to 70% of the next quarter sales. The firm has a beginning payables balance of $600 as of quarter one. What is the amount of the projected cash disbursements for accounts payable for Quarter 3 of the next year? Assume that a year has 360 days. A)$1,195 B)$1,085 C)$1,575
The ABC Company expects to have sales of $30,000 in January, $33,000 in February, and $38,000 in March. If 20 percent of sales are for cash, 40 percent are credit sales paid in the month following the sale, and 40 percent are credit sales paid 2 months following the sale, what are the cash receipts from sales in February?
Fine Co. has the following sales forecasts for the third quarter of 2021: ₱85,000 (July), ₱88,000 (Aug), ₱82,000 (Sep). All sales are on credit. Seventy-five percent are collected in the month of sales and remainder is collected the following month. Minimum cash balance is ₱10,000. How much cash would be collected in August from sales?
Suppose that the Sales in December 2019 were 41,498. The sales are expected to grow by 5% in January 2020, by 10% in February 2020, and by 15% in March 2020. After that, the sales are expected to grow by 9%. The company's cash collection is as follows: 24% is collected in the same month, 47% is collected in the next month, and the remainder in the following month. What is the cash collection for July, 2020?
Assume that sales and expenses forecasts for months April, May, June, and July are as follows. 20% of all sales in a month are paid in the same month, 60% are paid in the next month, and 20% are paid in the second month after. All expenses in a month are paid in the same month. There is a $20,000,000 minimum required cash balance at the end of each month, and any shortage from this minimum requirement will be covered by obtaining a loan.Any excess over $20,000,000 will be used to reduce or pay off cumulative loan.Initial cash balance in June is $6,000,000 and there is no cumulative loan at this time.Monthly prorated tax rate is 2%, and monthly interest rate on cumulative loan is 1%. Requirements: Prepare cash budget proforma for months June and July and interpret the result in detail.
Assume that sales and expenses forecasts for months April, May, June, and July are as follows. 20% of all sales in a month are paid in the same month, 60% are paid in the next month, and 20% are paid in the second month after. All expenses in a month are paid in the same month. There is a $20,000,000 minimum required cash balance at the end of each month, and any shortage from this minimum requirement will be covered by obtaining a loan.Any excess over $20,000,000 will be used to reduce or pay off cumulative loan.I nitial cash balance in June is $6,000,000 and there is no cumulative loan at this time. Monthly prorated tax rate is 2%, and monthly interest rate on cumulative loan is 1%. Requirements: 1. Prepare cash budget proforma for months June and July. Provide in-text citations and references, and explain your work in detail.
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