Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $21,300for March and $72,000 for April. What are the budgeted cash receipts from sales on account for April?PreviousNext Sleep Tight, Inc., manufactures bedding sets. The budgeted production is for 25,100 comforters this year. Each comforter requires 1.5 hours to cut and sew thematerial. The cost of cutting and sewing labor is $15.00 per hour. Determine the direct labor budget for this year.

25% sales were collected in month of sale and 75% in month fallowing the month of sale.

Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $21,300 for March and $72,000 for April. What are the budgeted cash receipts from sales on account for April?

Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $21,300 for March and $72,000 for April. What are the budgeted cash receipts from sales on account for April?

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

McMichael Inc. collects 90% of its sales on account in the month of the sale and 10% in the month following the sale. If sales on account are budgeted to be $495,000 for September and $431,000 for October, what are the budgeted cash receipts from sales on account for October?$
Peach Corporation's only cash receipts are those derived from customer sales. Peach makes both cash sales and sales on account. For its credit sales, Peach collects 50% in the month of the sale, 40% in the month following the sale, and 10% in the second month following the sale. Peach is preparing its cash budget for the upcoming year. Sales on account for the month of March are budgeted at $150,000. The budgeted accounts receivable balance on March 1 is $113,000, of which $90,000 represents uncollected sales made in February and $23,000 represents uncollected sales made in January. If Peach's total cash receipts for the month of March are budgeted at $205,000, what are Peach's budgeted cash sales during March? O $17,000 O $35,000 $53,000 $71,000 O None of the above
ABC Store. has budgeted sales for June and July at $690,000 and $720,000, respectively. Sales are 90% credit, of which 70% is collected in the month of sale and 30% is collected in the following month. What are the cash collections in July.
Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,800 units are planned to be sold in March. The variable selling and administrative expense is $4.30 per unit. The budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: Multiple Choice $40,660 $7,740 $43.360 $32,920
The following various elements relate to Whitfield, Inc.'s cash budget for April of the current year. For each item, determine the amount of cash that Whitfield should receive or pay in April. a. At $31 each, unit sales are 5,000 and 6,000 for March and April, respectively. Total sales are typically 40% for cash and 60% on credit; 30% of credit sales are collected in the month of sale, with the balance collected in the following month. Uncollectible accounts are negligible. Marchsales Answer Aprilcash sales Answer Aprilcredit sales Answer Cash collected in April Answer b. Merchandise purchases were $48,000 and $81,000 for March and April, respectively. Typically, 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month. Marchpurchases Answer Aprilpurchases Answer Cash paid in April Answer c. Fixed administrative expenses, which…
Primary Co. has budgeted sales of $228,000 in October and $312,000 in November. The company expects it will collect 70% of cash from sales in the month of the sale. The remaining 30% of cash will be collected the next month. What is the expected cash to be collected in November? $68,400 $286,800 $312,000 $253,200
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business September, October, and November are $239,000, $309,000, and $419,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in October from accounts receivable are estimated to be a. $173,040 b. $206,500 c. $139,580 d. $247,800
Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $150,000 for March and receipts from sales on account total $162,500 in April. What are budgeted sales on account for April?
Capstone Inc. collects 20% of its sales on account in the month of the sale and 80% in the month following the sale. If sales on account are budgeted to be $117,000 for September and $135,000 for October, what are the budgeted cash receipts from sales on account for October? $_________
Ivanhoe Company, a retailer of camping supplies has budgeted activity for January using the following data: January cash sales January credit sales Collections from December credit sales Selling and administrative costs (paid in month of purchase) Depreciation expense Merchandise Inventory, January 1 Merchandise Inventory, January 31 Cost of goods sold is 30% of Cooper's selling price All purchases are paid in cash Credit sales are collected 60% in the month of sale, 30% in the following month, and 10% is deemed uncollectible What is Ivanhoe's budgeted cash disbursements for January? Total January disbursements $ $59,000 386,000 155,000 59,000 22,000 199,000 211,000
Riverbed Inc. provided the following information: April Projected merchandise purchases $92,500 Calculate budgeted cash disbursements for May. May $82,000 Total budgeted cash disbursements $ June Riverbed pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month. General operating expenses are budgeted to be $34,500 per month of which depreciation is $3,400 of this amount. Riverbed pays operating expenses in the month incurred. Riverbed makes loan payments of $5,000 per month of which $550 is interest and the remainder is principal. $69,000
Wells Company reports the following budgeted sales: September, $53,000; October, $72,000; and November, $87,000. All sales are on credit, and 5% of those credit sales are budgeted as uncollectible. Collection of the remaining 95% of credit sales are budgeted as follows: 60% in the first month after sale and 35% in the second month after sale. Prepare a schedule of cash receipts from sales for November.