**TB MC Qu. 8-36 Budgeted Sales in Acer Corporation****Budgeted sales in Acer Corporation over the next four months are given below:**| Month | Budgeted Sales ||-------------|----------------|| September | $120,000 || October | $140,000 || November | $180,000 || December | $160,000 |Thirty 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 of sale, 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 Choice:**- $141,800- $100,500- $118,700- $161,400

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

Answered: Budgeted sales in Acer Corporation over…

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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Kingston budgets total sales for June and July of $330,000 and $408,000, respectively. Cash sales are 65% of total sales. Of the credit sales, 15% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 20% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgeted balance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31. Sales month Total Sales June July Total S 330,000 408,000 Credit Sales As of July 31 Percent Uncollected Amount Uncollected
Assume the following budgeted information for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $241,000, $211,000, and $202,000, respectively. Cash collections of credit sales are expected to be 75% in the month of sale and 25% in the month following the sale. The cost of goods sold is always 65% of sales. Each month’s ending inventory equals 20% of next month’s cost of goods sold. 40% 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 $21,500. Monthly depreciation expense is $21,000. The expected cash collections from customers in December are:
Fenway Company has budgeted the following amounts for sales in 2002: Month SalesApril $98,000May 67,000June 108,000July 82,000 An analysis of past patterns of receipts shows that 60% of the sales dollars are received in the month of the sale and 40% are received in the following month. Assuming this pattern continues, the amount of cash to be received in May and June isA. $85,600 and $83,400, respectively.B. $97,600 and $97,600, respectively.C. $91,600 and $81,600, respectively.D. $79,400 and $91,600, respectively. CAPITAL BUDGETING1. Using an interest rate of 8%, what is the present value of $50,000 to be received 4 yearsfrom today?A. $36,750.00B. $27,015.00C. $68,027.21D. $19,963.50 2. What is the present value of $650,000 that will be received in 10 years, if the discountrate is 12% ?A. $367,263B. $209,300C. $250,575D. $166,855
Company L charges all operating expenses to credit. They pay 70% of their accounts payable in the month following the expense, and 30% two months following the expense. Expenses (all paid for on credit) for the last three months have been provided below: August: $80,000 September: $120,000 October: $94,000 What is the budgeted cash outflow for October?
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, $319,000, and $424,000, 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 November from accounts receivable are projected to be: Ca. $338,520 Ob. $282,100 Oc. $237,440 Od. $192,780
Martinez Company has budgeted sales revenue as follows for the next 4 months: February March April May March sales Past experience indicates that 70% of sales each month are on credit. The remainder are cash sales. Collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale, and 3% in the second month following the sale. The other 2% is uncollectible. Credit sales Prepare a schedule which shows expected cash receipts from sales for the month of May. April sales MARTINEZCOMPANY Expected Cash Receipts from Sales For the Month Ended May 31 Credit sales $310,000 May sales 245,000 Credit sales 230,000 Cash sales 330,000 Total cash receipts OOONO
Evans Company's cash sales are normally 60% of total sales. Anticipated sales for April and May are $588,000 and $550,000 respectively of the credit sales. 10% are collected in the same month as the sale, 70% are collected during the first month after the sale, and the remaining 20% are collected in the second month. Determine the accounts receivable balance that should be reported on Evan's budgeted balance sheet as of May 31.
Center Company makes collections on sales according to the following schedule: 30% in the month of sale 60% in the month following sale 8% in the second month following sale The following sales are expected: Expected Sales January $ 108,000 February $ 144,000 March $ 127,000 Cash collections in March should be budgeted to be:
Daybook Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale. If sales on account are budgeted to be $105,000 for September and $116,000 for October, what are the budgeted cash receipts from sales on account for October?$fill in the blank 1
Getty Company expects sales for the first three months of next year to be $185,000, $235,000 and $310,000, 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 $ 250,000
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 $245,000, $311,000, and $413,000, 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 November from accounts receivable are projected to be: a. $231,280 O b. $187,740 Oc. $329,784 Od. $274,820
Kingston budgets total sales for June and July of $430,000 and $338,000, respectively. Cash sales are 65% of total sales. Of the credit sales, 25% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 10% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company’s budgeted balance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31. As of July 31 Sales month Total Sales Credit Sales Percent Uncollected Amount Uncollected June $430,000 July 338,000 Total

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