Browning Company's sales budget shows the following expected total sales:MonthSales$17,000JanuaryFebruary$21,000$26,000$49,000MarchAprilThe company expects 70% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale, 69% in the month following the sale with the remainder being uncollectible and written off. The total cash inflows from sales in April would be:Multiple Choice$35,833.$25,725$35,200.$21,165

Calculation of cash inflows in April:

Answered: Browning Company's sales budget shows…

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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Prince Charles Island Company has expected sales of $6,000 in September, $10,000 in October, $16,000 in November, and $12,000 in December. Cash sales are 20 percent and credit sales are 80 percent of total sales. Historically, 40 percent of receivables are collected in the month after the sale, and the remaining 60 percent collected two months after. Assume that the company's cash payments for November are $13,000, and December $6,000. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. Sales Credit sales Cash sales Collections in the month after credit sales Collections two months after credit sales Total cash receipts Prince Charles Island Company Cash Receipts Schedule September S Cash receipts Cash payments Net cash flow Prince Charles Island Company Cash Budget November Beginning cash balance Cumulative cash balance. Monthly loan or (repayment). Cumulative loan balance. Ending cash…
Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July August September $ 92,140 $ 107,685 $ 135,496 Cash sales are normally 35% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:
Miller Corporation has the following sales budget for the third quarter of 2021: Month Sales July $400,000 August $320,000 September $500,000 Historically, the following trend has been established regarding cash collection of sales: 60 percent of sales are paid in month of sale 35 percent of sales are paid in month following the sale 5 percent of sales are uncollectible and are written off in the month following the sale The expected total cash receipts for the month of September is: A. $300,000. B. $25,000. C. $112,000. D. $412,000.
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Browning Company's sales budget shows the following expected total sales: Month Sales $23,000 $27,000 $32,000 $43,000 January February March April The company expects 70% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale, 69% in the month following the sale with the remainder being uncollectible and written off. The total cash inflows from sales in April would be: Multiple Choice $22,575 $25,005. $35,881 $23,200
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Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $42,000 and $74,000, respectively. The company expects to collect 35% of its credit sales in the month of the sale and the remaining 65% in the following month. What amount of cash collections from credit sales would the company include in its cash budget for the second month?
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n Fraser Company has forecast purchases on account to be $210,000 in March, $270,000 in April, $320,000 in May, and $390,000 in June. Seventy percent of purchases are paid for in the month of purchase, the remaining thirty percent are paid in the following month. What are budgeted cash payments for April? bus page O a. $252,000 O b. $285,000 O c. $126,000 O d. $159,000 Type here to search X £ 3 E 4 D R O Bl % 5 F J JC U IL 20 # 6 & DU JU G H B U N 8 H K Time left 0:35: M Next page 28°C Ma

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