Carmen's Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $670,000 inDecember. Because Carmen's Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 28percent drop in sales for January. The balance in the Accounts Receivable account on December 31 was $96,600 and is budgeted tobe $73,200 as of January 31.Requireda. Determine the amount of cash Carmen's Dress Delivery expects to collect from accounts receivable during January.Expected cash collection

Step 1:Computation of the expected sales on account during January:Expected sales on account during…

Answered: Carmen's Dress Delivery operates a…

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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Woodpecker Co. has $298,000 in accounts receivable on January 1. Budgeted sales for January are $965,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are a $1,368,000 Ob. $856,000 O $1,070,000 Od $642,000
Lipton Auto Parts, a family-owned auto parts store, began January with $10,300 cash . Management forecasts.Management forecasts that collections from credit customers will be $11,000 in January and $15,200 in February.The store is scheduled to receive $5,500 cash on a business note receivable in January. Projected cash payments include inventory purchases ($13,200 in January and $13,200 in February) and selling and administrative expenses ($3,100 each month). Requirement 1. Prepare Lipton Auto Parts's cash budget for January and February Requirement 2. How much cash will Lipton Auto Parts borrow in February if collections from customers that month total $14,200 instead of $15,200?
Rooney Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Rooney’s policy is to maintain an ending inventory balance equal to 15 percent of the following month’s cost of goods sold. April’s budgeted cost of goods sold is $82,000. Required Complete the inventory purchases budget by filling in the missing amounts. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
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Woodpecker Co. has $300,000 in accounts receivable on January 1. Budgeted sales for January are $964,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are a.$642,720 b.$1,071,200 c.$1,371,200 d.$856,960
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The Hubbard Corporation is a distributor of hair care products and is ready to start the third quarter, in which its peak sales occur. The company has requested a $100,000, 90-day loan from its bank to help them meet their cash requirements for the third quarter. Since Hubbard Corporation has experienced difficulty in paying off their loans in previous years, the loan officer has requested the company prepare a cash budget for the third quarter. The following data has been gathered by the staff. On July 1, 2021, the beginning of the third quarter, the company will have a cash balance of $75,000. Actual sales for the last 2 months and budgeted sales for the third quarter (all sales are on account). Month Amount in Dollars ($) May (actual) 500,000 June (actual) 480,000 July (budgeted) 520,000 August (budgeted) 550,000 September (budgeted) 600,000 Past experience shows that 30% of a month's sales are collected in the month of sale, 60% in the month…
Woodpecker Co. has $292,000 in accounts receivable on January 1. Budgeted sales for January are $979,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are Oa. $1,367,200 Ob. $1,075,200 Oc. $645,120 Od. $860,160
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Gibson is a retail company specializing in men's hats. Its budget director prepared the list of expected operating expenses that follows. All items are paid when incurred except sales commissions and utilities, which are paid in the month following their incurrence. July is the first month of operations, so there are no beginning account balances. Salary expense Sales commissions (4 percent of sales) Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous Total S&A expenses before interest Required a. Prepare a schedule of cash payments for selling and administrative expenses. b. Determine the amount of utilities payable as of September 30. c. Determine the amount of sales commissions payable as of September 30. Complete this question by entering your answers in the tabs below. Req A Req B and C July $18,300 August September $18,300 $18,300 2,800 2,800 2,800 290 320 350 2,500 2,500 2,500 2,700 2,700 2,700 5,700 5,700 5,700 790 790 790 $33,080 $33,110 $33, 140…

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