Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: Sales Budget May Cash Sales 73,000 Sales on Account 492,000 565,000 Multiple Choice Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale. What is the amount of sales revenue that the company will report on the second quarter pro forma income statement? $1,294,300 $1,567,000 $1,725,000 April 105,000 445,000 550,000 $1,459,800 June 130,000 480,000 610,000

Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: Sales Budget May Cash Sales 73,000 Sales on Account 492,000 565,000 Multiple Choice Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale. What is the amount of sales revenue that the company will report on the second quarter pro forma income statement? $1,294,300 $1,567,000 $1,725,000 April 105,000 445,000 550,000 $1,459,800 June 130,000 480,000 610,000

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

Leaning Tower of Pizza, Inc. is preparing its master budget for its first quarter of business. It expects to sell 8,000 pizzas at $7 per pizza per month. It expects to collect 90% of the sales in the month of the sale and 10% in the following month. Calculate its accounts receivable balance at the end of its first quarter.
Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: April May June Total Budgeted sales (all on account) $300,000 $500,000 $200,000 $1,000,000 The company estimates 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230, 000, and March sales totaled $260,000. Required: Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. What is the accounts receivable balance on June 30th?
Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,300 units; October, 4,900 units; November, 6,700 units; and December, 7,900 units. The company's policy is to maintain finished goods inventory equal to 50% of the next month's sales. At the end of August, the company had 2,800 finished units on hand. Prepare a production budget for each of the months of September, October, and November. Blue Wave Co. Production Budget September, October and November September Next month's budgeted sales (units) Units to be produced % October % November %
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 12,300 13,300 15,300 14,300 The selling price of the company's product is $22 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $72,800. The company expects to start the first quarter with 2,460 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,660 units.
Whispering Winds Company estimates that unit sales will be 10,500 in quarter 1; 12,600 in quarter 2; 13,800 in quarter 3; and 17,800 in quarter 4. Management wants to have an ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2022. WHISPERING WINDS COMPANY Production Budget For the Six Months Ending June 30, 2022 Quarter 1 2 Total
The marketing department of Jessi Corporation submitted the following sales forecast for next year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 12,900 13,900 15,900 14,900 Budgeted unit sales The selling price of the company's product is $28 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made and 20% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $74,000. The company expects to start the first quarter with 2,580 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,780 units. Required: 1. alculate the estimated sales for each quarter and for the year as a whole. 2. Calculate the expected cash collections…
Frolic Corporation has budgeted sales and production over the next quarter as follows: Sales in units Production in units The company has 17,500 units of product on hand at July 1. 25% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 97,000 units. Budgeted sales for September would be (in units): Multiple Choice 84,000 88,000 86,000 July August September 83,000 ? 70,000 73,250 84,750 91,750 90,000
Lea Company's sales budget shows the following projections for the year ending Dec. 31, 2021: First quarter 40,000 units Third quarter 50,000 units Second quarter 55,000 units Fourth quarter 45,000 units The quantity of finished goods inventory at the end of each quarter is equal to 40% of the next quarter's budgeted unit sales and is constantly being maintained. What is the total production budget in units for one year ending Dec. 31, 2021 assuming that the estimated sales in units on the first quarter of 2022 is 50,000
Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: Sales Budget Cash Sales Sales on Account April May June 95,000 69,000 120,000 435,000 484,000 470,000 530,000 553,000 590,000 Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale. What is the ending accounts receivable balance that would be reported on the pro forma balance sheet prepared as of June 30?
The management of Jewel Company plans to have a finished goods inventory at the end of each month equal to 10% of the next month's sales. Budgeted sales in units over the next three months are 60,000 in October, 100,000 in November, and 120,000 in December. Budgeted Sales for January is 120,000. The beginning finished goods inventory for October is 60,000. REQUIRED: Compute for budgeted number of units to be produced in October, November and December. Use the template below: October November December Budgeted unit sales Add desired ending finished goods inventory Total needs Less beginning finished goods inventory Required production in units
Champ Incorporated budgets the following sales in units for the coming two months. Each month's ending inventory of finished units should be 70% of the next month's sales. The April 30 finished goods inventory is 175 units. May June Budgeted sales units 250 250 Prepare the production budget for May. CHAMP, INC. Production Budget May Add: Desired ending inventory Total required units Units to produce
Ratchet Manufacturing's August sales budget calls for sales of 5,000 units. Each month's sales are expected to exceed the prior month's results by 6%. The product selling price is $20 per unit. The expected total sales dollars for September's sales budget are: $100,000. $94,000. $106,000. $112,000. $5,300. Western Company is preparing a cash budget for June. The company has $10,100 cash at the beginning of June and anticipates $31,900 in cash receipts and $38,300 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: Borrow $6,300. Borrow $10,000. Repay $6,300. Repay $3,700. Borrow $6,400. Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July…