АВС СОМРANY Month Sales budget July August September 800,000 750,000 990,000 October 630,000 November 560,000 Other data: 1. Cost of Goods Sold is 65% of sales. 2. Total monthly fixed costs are 120,000, plus an additional 30,000 non-cash expenses. 3. The company maintains inventory two-month supply, which includes the following month. 4. ABC Co. pays for its purchases 45% in the month of purchase, 55% in the following month. 5. The company collects 75% of its sales in the month of sale, and 25% in the following month. 6. ABC Co. pays all other expenses requiring cash disbursements as incurred. 7. ABC Co. tries to keep at least 30,000 cash as buffer against unexpected needs. Balance Sheet as of 30 June 2022 Assets Liabilities and Capital 100,000 Cash Accounts Receivable Inventory Accounts Payable 200,000 280,000 490,000 Non-current asset 1,550,000 A, Capital 2,220,000 Total PHP 2,420,000 PHP 2,420,000 Pro Forma Balance Sheet as of 30 September 2022 Assets Liabilities and Capital Cash Accounts Payable Accounts Receivable Inventory Non-current asset | 4, Capital Total PHP 0 PHP 0

АВС СОМРANY Month Sales budget July August September 800,000 750,000 990,000 October 630,000 November 560,000 Other data: 1. Cost of Goods Sold is 65% of sales. 2. Total monthly fixed costs are 120,000, plus an additional 30,000 non-cash expenses. 3. The company maintains inventory two-month supply, which includes the following month. 4. ABC Co. pays for its purchases 45% in the month of purchase, 55% in the following month. 5. The company collects 75% of its sales in the month of sale, and 25% in the following month. 6. ABC Co. pays all other expenses requiring cash disbursements as incurred. 7. ABC Co. tries to keep at least 30,000 cash as buffer against unexpected needs. Balance Sheet as of 30 June 2022 Assets Liabilities and Capital 100,000 Cash Accounts Receivable Inventory Accounts Payable 200,000 280,000 490,000 Non-current asset 1,550,000 A, Capital 2,220,000 Total PHP 2,420,000 PHP 2,420,000 Pro Forma Balance Sheet as of 30 September 2022 Assets Liabilities and Capital Cash Accounts Payable Accounts Receivable Inventory Non-current asset | 4, Capital Total PHP 0 PHP 0

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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Sheridan, Inc. expects sales volume totaling $460000 for June. Data for the month follows: Sales commissions Sales manager's salary 4% of sales $27600 per month $23000 per month Advertising expense Shipping expense. Miscellaneous selling expenses $1932 per month plus 3/4% of sales O $78982. O $52532. O $28382. O $77050. 1% of sales How much is Sheridan's selling expense budget for June?
Assume a manufacturing company,s estimated sales for january,febuar and march are 1,00,000 , 1,20,000 , 1,10,000 respectively.the cost of goods sold is always 40 % of its sales.the company always maintains ending merchandise inventory equal to 10%of next motn cost of goods sold.it pays for 25% of its merchandise purchase in the month of the purchase and remaining 75%in the subsequent month .What is the account payable balance at the end of febuary? please proper explantion thnx
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You collect 75% of a month's sales in the month of the sale and 25% of sales in the following month. May sales June sales July sales O $105 O $35 $120 Compute cash inflows for June. $135 $140 $100 not enough information, because sales revenue differs
Pardee Company makes 30% of its sales for cash and 70% on account. 60% of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Month 1 2 3 4 Total sales $78,000 $80,000 $68,000 $48,000 Total cash receipts in Month 4 will be: A. 38,780 B.68,000 C.53,180 D.50,600
Joyner Company has the following historical collection pattern for its credit sales: 60% collected in month of sale 20% collected in the first month after sale 15% collected in the second month after sale 4% collected in the third month after sale 1% uncollectible Budgeted credit sales for the last six months of the year follow. July $49,000 August 54,000 September 59,000 October 64,000 November 69,000 December 61,500 Required: -A. Calculate the estimated total cash collections during October. B. Calculate the estimated total cash collections during the year's fourth quarter. A. Total cash collections during October B. Total cash collections during the year's fourth quarter
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