Cedar Company has forecast purchases to be $338,000 in June, $377,000 in July, $319,000 in August, and $275,000 n September. Purchases average 35% paid in cash and 65% paid on credit, Credit purchases are paid 65% in the month of purchase, 20% during the month following, and 15% the second month following the purchase. Budgeted cash payments for September would be:

Cedar Company has forecast purchases to be $338,000 in June, $377,000 in July, $319,000 in August, and $275,000 n September. Purchases average 35% paid in cash and 65% paid on credit, Credit purchases are paid 65% in the month of purchase, 20% during the month following, and 15% the second month following the purchase. Budgeted cash payments for September would be:

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 $520,000 and $488,000, respectively. Cash sales are 70% of total sales. Of the credit sales, 15% are collected in the month of sale, 60% are collected during the first month after the sale, and the remaining 25% 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 June July Total Total Sales $ 520,000 488,000 Credit Sales As of July 31 Percent Uncollected Amount Uncollected
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Rugged Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales are budgeted to be $400,000 for March and $450,000 for April, what are the budgeted cash receipts from sales on account for April?
Vaughn Manufacturing expects to purchase $280000 of materials in July and $308000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. What are budgeted cash disbursements for materials purchases in August? O $308000 O $231000 O $210000 O $301000
Orange Company has sales of $50,000 in March and $60,000 in April. Forecast sales for May, June, and July are $70,000, $80,000, and $100,000, respectively. The firm has a cash balance of $5,000 on 1 May and wishes to maintain a minimum cash balance of $5,000. Given the following data, prepare and interpret a cash budget for the months of May, June, and July. • The firm makes 20% of sales for cash, 60% are collected in the next month, and the remaining 20% are collected in the second month following sale • The firm recelves other income of $2,000 per month • The firm's actual or expected purchases, all made for cash, are $50,000, $70,000, and $80,000 for the months of May through July, respectively • Rent is $3,000 per month • Wages and salaries are 10% of the previous month's sales • Cash dividends of $3,000 will be paid in June • Payment of principal and interest of $4,000 is due in June • A cash purchase of equipment costing $6,000 is scheduled in July • Taxes of $6,000 are due in…
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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
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