TB MC Qu. 8-36 Budgeted sales In Acer Corporation...Budgeted sales in Acer Corporation over the next four months are given below:September$120,000October$140,000NovemberDecemberBudgeted sales$180,000$160,000Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month ofsale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be:Multiple Cholce$141.800$100,500$118,700$161.400< Prev18 of 36Next >1:51here to searchW74 F Mostly sunny10/20DELL近

Cash collection is the activity to receive payment from the customers to whom the sales have been…

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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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Elordi Engineers Corp. has the following budgeted sales data (in dollars): June July August September Credit Sales 290,000 300,000 260,000 310,000 Cash Sales 70,000 70,000 70,000 70,000 The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following sale, and the remainder in the second month following the month of sale. There are no bad debts. What would the budgeted cash receipts during September be? Round your answer to the nearest whole number.
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
Assume the following budgeted information for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $248,000, $218,000, and $209,000, respectively. • Cash collections related to credit sales are expected to be 70% in the month of sale, 30% in the month following the sale. • The cost of goods sold is 70% of sales. • Each month's ending inventory equals 20% of next month's cost of goods sold. • 30% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month. • Monthly selling and administrative expenses that are paid in cash in the month incurred total $25,000. • Monthly depreciation expense is $9.000. . The budgeted net operating income for December would be: Multiple Choice $40,400 $25,734 $16,734 $31,400
Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: Budgeted sales (all on account) April $ 320,000 May $520,000 June $ 180,000 Total $ 1,020,000 The company estimates 30% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $250,000, and March sales totaled $280,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Schedule of Expected Cash Collections April February sales March sales $ 12,500 182,000…
Budgeted sales in Allen Company over the next four months are : September $100,00, October $160,000, November $180,000, December $120,000. Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be:
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
Farm Supply Company's budgeted monthly sales are as follows: April $780,000, May $560,000, and June $900,000. Sales are 60% cash and 40% on account. Farm Supply collects all its accounts receivable in the month following the sale. Cost of goods sold is budgeted at 75% of sales and ending inventory is budgeted at 20% of the next month's cost of goods sold. All inventory purchases are paid 28% in the month of purchase and 72% in the following month. What are Farm Supply's budgeted cash collections for the month of May? O $336,000 O $414,000 O $648,000 O $747,000 O None of the above
How much is the prepaid expenses on Dec. 31, 2020?
Meredith Company has budgeted sales for the upcoming months as follows: $ 452,000 $ 467,000 $ 498,000 $ 516,000 $ 503,000 $ April Мay June July August September $ 478,000 40% of the sales are credit sales, the remainder are made in cash. Credit sales are collected 50% in the month of sale, 35% in the month following the sale, and 8% in the second month following the sale. a. Compute Meredith Company's cash receipts for June. (Do not round intermediate calculations.) Cash Receipts b. Compute Meredith Company's cash receipts for July. (Do not round intermediate calculations.) Cash Receipts c. Compute Meredith Company's cash receipts for August. (Do not round intermediate calculations.) Cash Receipts
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.
Getty Company expects sales for the first three months of next year to be $205,000, $270,000 and $300,000, respectively. Getty expects 30 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent in the month of the sale and 90 percent in the following month. Compute a schedule of Getty's cash receipts for the months of February and March. February March Budgeted cash receipts
Thornton, Inc. has budgeted sales for the months of September and October at S304,000.00 and $288,000.00, respectively. Monthly sales are 20% credit and 80% cash. Of the credit sales, 50% are collected in the month of sale, and 50% are collected in the following month. Calculate cash collections for the month of October. O A. $289,600.00 O B. $302.400.00 OC. $259,200.00 O D. $273,600.00

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