CASH BUDGET 3. EEVEE CORP. prepared cash estimates for the next four months. developed for certain items: The following estimates were April P6,000 2,000 1,500 2,600 2,400 In February, credit sales totaled P9,000, and purchases totaled P5,000. January credit sales were P12,000. Accounts receivable collections amount to 30 % in the month after the sale and 60% in the second month after the sale; 10% of the receivables are never collected. Payroll and other expenses are paid in the month incurred. Seventy-five percent of the purchases are paid in the month incurred, and the remainder are paid in the following month. A P15,000 tax payment is due on June 15. The cash balance was P5,000 on March 1. The company wants a minimum cash balance of P5,000 per March May P8,000 6,000 2,500 2,800 2,600 Item June Cash sales P10,000 5,000 2,000 3,000 2,500 P11,000 9,000 3,000 4,000 2,800 Credit sales Payroll Purchases Other expenses month. REQUIREMENTS: (a) Prepare a cash budget for the four-month period, March through June. (b) List the amount of funds available for investing or required for borrowing in each month.

CASH BUDGET 3. EEVEE CORP. prepared cash estimates for the next four months. developed for certain items: The following estimates were April P6,000 2,000 1,500 2,600 2,400 In February, credit sales totaled P9,000, and purchases totaled P5,000. January credit sales were P12,000. Accounts receivable collections amount to 30 % in the month after the sale and 60% in the second month after the sale; 10% of the receivables are never collected. Payroll and other expenses are paid in the month incurred. Seventy-five percent of the purchases are paid in the month incurred, and the remainder are paid in the following month. A P15,000 tax payment is due on June 15. The cash balance was P5,000 on March 1. The company wants a minimum cash balance of P5,000 per March May P8,000 6,000 2,500 2,800 2,600 Item June Cash sales P10,000 5,000 2,000 3,000 2,500 P11,000 9,000 3,000 4,000 2,800 Credit sales Payroll Purchases Other expenses month. REQUIREMENTS: (a) Prepare a cash budget for the four-month period, March through June. (b) List the amount of funds available for investing or required for borrowing in each month.

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

The cash collection pattern of Twice Co. Inc shows that 60% of sales are collected on the month of sale, 30% is collected on the next month and the remaining is collected on the third month from the month of sale. The monthly sales are shown as follow April 1,400,000 Jan Feb March May 1,500,000 1,200,000 1,600,000 1,000,000 Create cash collection budget
Preparing a financial budget—schedule of cash receipts sensitivity analysis Marcel Company projects the following sales for the first three months of the year: $11,200 in January; $512,300 in February; and $11,100 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January l. Round to the nearest dollar. Requirements . Prepare a schedule of cash receipts for Marcel for January, February and March. What is the balance in Accounts Receivable on March 31? Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31?
A company has 30% of its sales for cash and 70% of its sales on credit. All credit sales are fully collected in the first month after the sale. Budgeted sales are $60,200 for January, $84,200 for February, and $108,200 for March. December sales were $50,200. Prepare a schedule of cash receipts from sales for January, February, and March. Sales Cash receipts from: Cash sales Collections of prior period sales. Total cash receipts $ 60,200 $ February 84,200 $ 108,200
The budgeted sales of Kelley, SA for the given months are as follows: Cash Sales Credit Sales April $38,000 $256,000 May $54,000 $250,000 June $36,000 $192,000 July $33,000 $190,000 August $35,000 $287,000 To prepare a cash budget, the company needs to determine the expected cash collections each month, and has provided the following additional information: The Accounts Receivable balance on April 1 was $82,015. Of this amount, $57,015 represented uncollected March sales and $25,000 represented uncollected February sales. Collections on Credit sales: 65% in month of sale 30% in month following sale 5% in second month following sale Part 1: What should the April cash collected be? $BLANK Part 2: For August 1, what is budgeted Accounts Receivable? (76,100, 100,300, 109,950, 144950, OR 79,700)
Cloudy Company had the following historical collection pattern for its credit sales: 70% collected in the month of sale 12% collected in the first month after month of sale 10% collected in the second month after month of sale 5% collected in the third month after month of sale 3% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below: July August September October November December The estimated cash collection by Cloudy Company during September from credit sales in July, August, and September is: Multiple Choice $83,840. $100,160. $90,880. $ 92,000 $ 104,000 $ 116,000 $ 128,000 $ 140,000 $ 122,000 $64,400.
Budgeting Cash Collections Lowell Consulting, which sells on terms 2/10, n/30, had credit sales for March and April of $90,000 and $75,000, respectively. Analysis of Lowell's operations indicates that the pattern of customers' payments on account is as follows (percentages are of total monthly credit sales) In month of sale in month of following sale Uncollectible accounts, returns, and allowances Receiving Discount Beyond Discount Period Totals 20% 60% 20% 35% 5% 100% 40% 15% Determine the estimated cash collected on customers' accounts in April.
The Overland Company is preparing its cash budget for the month of June. The following information is available concerning its accounts receivable: $304,000 229,000 Estimated credit sales for June Actual credit sales for May Estimated collections in June for credit sales in June Estimated collections in June for credit sales in May Estimated collections in June for credit sales prior to May 25% 65% $ 22,000 16,000 14,000 Estimated write-offs in June for uncollectible credit sales Estimated provision for bad debts in June for credit sales in June What are the estimated cash receipts from accounts receivable collections in June?
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?
None
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 $40,000 and $77,000, respectively. The company expects to collect 30% of its credit sales in the month of the sale and the remaining 70% in the following month. What is the expected cash collections from credit sales during the first month?
Spana Company has the following data: Table 4: Total Monthly Purchasing Budget Month Budgeted Purchases January 220,000 February 185,000 March 240,000 April 155,000 May 180,000 Purchases are paid as follows: ∙ 10% in the month of purchase ∙ 60% one month after purchase ∙ 30% two months after purchase Required: (i) Develop a schedule of cash disbursements for purchases for March, April and May.
what is the correct answer