Frambosa Ltd is currently preparing a cash budget for January to April. Its estimated sales figures (£) are as follows:Cash salesCredit salesJanuary10,5268,020Cash salesCredit salesTotalFebruary4,79011,667Cash receivable from cash and credit sales:(Round the answers for cash sales to the nearest £.)Cash sales are paid for immediately, and customers paying cash are given a 2% discount, but credit sales are invoiced to customers, who normally pay inthe following month. The closing trade receivables (debtors) at 31 December totalled £5,221.Show the relevant figures for sales to be included in the cash budget for January to April.JanuaryMarch6,7837,207FebruaryApril6,81612,247MarchC...April

Lets understand the basics. Budgets are prepared by management in order to estimate profit and loss…

Answered: Cash receivable from cash and credit…

Cash receivable from cash and credit sales: (Round the answers for cash sales to the nearest £.) Cash sales Credit sales Total January February March April

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

Wellness Products, needs a cash budget for September. The following information is available: 1. The cash balance at the beginning of August is 9,000€. 2. Contribution margin is 50% (COGS are 50% of sales) 3. Actual sales for July and expected sales for August, September and October are as shown below. Some customers pay in cash (Cash sales) and others in account as described in the figure below. Customers that pay in account, make the payment the month after. 4. Purchases of inventory (company just resells what they buy) must be done so that the end of month inventory must cover 20% of next month sales. Initial inventory in July was 5.300€. 100% of a month's inventory purchases are paid for during the month of purchase. 1. Prepare a schedule of expected cash collections for August, September & October. 2. Prepare a merchandise purchases budget for July, August, and September. 3. Prepare a schedule of expected cash flow (cash in minus cash out) for August, and September. Cash Sales…
The management of Palind Ltd decide to prepare a Cash Budget for November and December. The following information is available: Sales: Cash Credit Purchases Salaries & Wages Sundry Expenses WY Actual August September October R 194 500 287 300 510 000 72 600 17 800 R 235 700 350 000 490 000 72 600 18 400 R 275 000 410 000 495 000 72 600 22 000 Additional information: 1. Cash in respect of credit sales is collected as follows: • 50% within 30 days • 30% within 60 days • 15% within 90 days • The balance is written off as irrecoverable. 2. The following discounts are allowed on sales: Budgeted 7. The cash in the bank on 31 October was R44 500. November December R 250 500 400 400 520 000 72 600 22 600 R 368 000 697 000 680 000 72 600 25 700 • 10% on cash sales • 7.5% on credit sales if accounts are settled within 30 days. 3. All salaries, wages and sundry expenses are paid in cash. 4. Sundry expenses include depreciation of R4 200 per month. 5. Seventy-five (75%) of all purchases are on…
Treasure Service anticipates the following sales revenue over a five-month period: Its collection history indicates that credit sales are collected as follows: E (Click the icon to view the sales data.) A (Click the icon to view the collections data.) The company's sales are 20% cash and 80% credit. How much cash will be collected in Janua More Info 25% in the month of the sale 50% in the month after the sale Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole do 20% two months after the sale Treasure Service 5% are never collected Cash Collections Budget For the Months of January through March January Data Table Print Done Cash sales Collection of credit sales: 25% Month of sale November December January February March 50% Month after Sales revenue....... 16,100 $ 10,000 $ 15,200 $ 12,000 $ 14,200 20% Two months after Total cash collections Print Done
Petronina Sdn. Bhd. needs a cash budget for October. The following information isavailable:1. The cash balance at the beginning of October is RM9,000.2. The actual sales for August and September and expected sales for October arepresented in Table 1: Table 1: Cash, Credit, and Total SalesItems August(RM) September(RM) October(RM)Cash sales 6,500 5,250 7,400Sales on credit 20,000 30,000 40,000Total sales 26,500 35,250 47,400Credit sales are collected over a 3-month period in the following ratio:i. In the month of sale: 10%ii. In the month following the sale: 70%iii. In the second month following the sale: 18%iv. The remaining 2% is uncollectible3. Purchases of inventory will total RM25,000 for October; 20% will be paid inOctober. Accounts payable from September’s inventory purchases is RM16,000;this will be paid in October.4. Selling and administrative expenses are budgeted at RM13,000 for October; ofthis amount, RM4,000 is for depreciation.5. Equipment costing RM18,000 will be…
Complete your calculations by filling in the highlighted cells. Discuss your observations about the way cash is collected if the company needs $150,000 per month for expenses.
Emerald Service anticipates the following sales revenue over a five-month period Its collection history indicates that credit sales are collected as follows E (Click the icon to view the sales data ) The company's sales are 40% cash and 60% credit O (Click the icon to view the collections data) How much cash will be collected in January? In February? In March? For the quarter in total? Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole dollar) Emerald Service Cash Collections Budget For the Months of January through March January Cash sales 6,080 Collection of credit sales 25% Month of sale 2,280 50% Month after 15% Two months after Total cash collections
Tamarisk Garden Center has the following cash budget information available for the month of August: Beginning cash balance Cash receipts from sales and collections on account Collection of note receivable and interest Cash disbursements for operating expenses The company would have to $129,000 eTexthonk and Media 115,000 8,100 If the company has a policy of maintaining an end of the month cash balance of $120,000, determine the amount the company would have to borrow or the amount of excess cash it will have to invest in August. 96,400 SUPPORT
Adeline Sdn Bhd has engaged you to prepare its cash budget for July 2021. The following is the information extracted from its management report: May 2021 June 2021 July 2021 Credit sales 500,000 450,000 600,000 Purchases of direct material 300,000 500,000 550,000 Expenses 80,000 Other receipts: Sale of investments 30,000 Other payments: Purchase of van 60,000 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Of direct material purchases, 40% are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items and expenses above are paid in the month incurred. The cash balance on 1 July 2021 is expected to be RM60,000. Adeline wants to maintain a minimum cash balance of RM50,000. Required: How much will Adeline receive in…
Kupa Ltd has approached to assist in preparing a cash budget. The annual and projected sales are provided below. date Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 April 2021 May 2021 June 2021 July 2021 Sales (in ‘000’) 2000 1970 1900 2100 2200 2240 2000 2160 2180 2200 45% of cash sales are on cash basis. Of credit sales, 35% is collected in the month of sale, 40% one month after sale and 20% two months from sales Gross profit margin is 20%. Goods purchased in a given month are sold in the following month after the month of purchase. Payment of purchases is as follows, 60% is paid one month after purchase and the remainder two months after purchase. Required Compute Cash collected from sales in month of January and February 2021 Cash paid to suppliers of goods in the months of January and February 2021
Peters Products, a distributor of organic beverages, needs a cash budget for September. The following information is available: The cash balance at the beginning of August is 9,000€. Contribution margin is 50% (COGS are 50% of sales) Actual sales for July and expected sales for August, September and October are as shown below. Some customers pay in cash (Cash sales) and others in account as described in the figure below. Customers that pay in account, make the payment the month after. Purchases of inventory (company just resells what they buy) must be done so that the end of month inventory must cover 20% of next month sales. Initial inventory in July was 5.300€. 100% of a month’s inventory purchases are paid for during the month of purchase. Prepare a schedule of expected cash collections for August, September & October. Prepare a merchandise purchases budget for July, August, and September. Prepare a schedule of expected cash flow (cash in minus cash out) for August, and…
I need help with this three part problem 1. Calculate the expected cash collections for December. 2. Calculate the expected cash disbursements for merchandise purchases for December.
please help me these questions