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?

Explanation of Cash Sales: This refers to the portion of sales that is paid for immediately at the…

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
Assume that sales and expenses forecasts for months April, May, June, and July are as follows. 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.
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?
Suppose that the Sales in December 2019 were 78,893. The sales are expected to grow by 15% in January 2020, by 4% in February 2020, and by 5% in March 2020. After that, the sales are expected to grow by 4%. The company's cash collection is as follows: 22% is collected in the same month, 22% is collected in the next month, and the remainder in the following month. What is the cash collection for June, 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. Provide in-text citations and references, and explain your work in detail.
Your projected sales for the first 3 months of next year are as follows:January, $15,000; February, $20,000; and March, $25,000. Based on lastyear’s data, cash sales are 20 percent of total sales for each month. Of theaccounts receivable, 60 percent are collected in the month after the sale and40 percent are collected in the second month following the sale. Sales forNovember of the current year are $15,000 and for December are $17,000.You have the following estimated payments: January, $4,500; February,$5,500; and March, $5,200.a. Using the format from the pro forma cash budget in Table 6–8, what is yourmonthly cash budget for January, February, and March?b. What will your accounts receivable be for the beginning of April?c. Will your company have any borrowing requirements for any month duringthis 3-month period?
Vertical Ladder Company (VLC) forecasts its sales for January through April will be $60,000, $70,000, $100,000, and $90,000, respectively. All sales are made on credit, and it is expected that 20 percent of sales will be collected in the month of the sale and the remainder will be collected the month following the sale. Customers who pay in the month of the sale will take the 4 percent cash discount VLC offers for paying early. VLC normally purchases and pays for raw materials, which cost 60 percent of sales, one month prior to selling the finished products. Employees' wages represent 30 percent of sales and rent is $4,000 per month. At the beginning of February, VLC expects to have $6,000 in cash, which is $2,000 greater than its target cash balance. Using the information provided, construct VLC's cash budget for February and March. Round your answers to the nearest dollar. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". February March…
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Lee Verly will be opening his company called LV Catering in January of the next year. He predicts that January, February and March will generate $170,000, $120,000 and $190,000 worth of sales respectively. The company expects to sell 15% of its products for cash. Of the sales on account, 50% are expected to be collected in the month of the sale, 25% in the month following the sale and the remainder in the following month. Prepare the cash receipts section of the cash budget. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. LV Catering Cash Receipts For January, February and March January February March Cash sales $Answer $Answer $Answer Collections from credit customers $Answer $Answer $Answer Total Cash Receipts $Answer $Answer $Answer Please don't provide answer in image format thank you
Bruno Industries expects credit sales for January, February, and March to be $200,000, $260,000, and $300,000, respectively. It is expected that 55% of the sales will be collected in the month of sale, 35% will be collected in the following month, and 10% will be collected in the second month after the sales. How much will the closing balance of Accounts Receivable at the end of March be? 3. In the beginning of the period, XYZ Ltd. expects to sell 15,000 units for $10 each. Its standard cost card shows the total cost of production per unit is $8. At the end of the period, the company reported actual sales revenue at $120,000 for 16,000 units sold. What was the sale price variance?

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