Corvi Corporation produces and sells one product. The budgeted selling price per unit is $126. Budgeted unit sales are shown below: October 12,100 Budgeted unit sales Multiple Choice All sales are on credit with 40% collected in the month of the sale and 60% in the following month. The expected cash collections for August is closest to: $551,880 $579,600 $919,800 July 7,300 $1,131,480 August September 11,500 14, 200

Corvi Corporation produces and sells one product. The budgeted selling price per unit is $126. Budgeted unit sales are shown below: October 12,100 Budgeted unit sales Multiple Choice All sales are on credit with 40% collected in the month of the sale and 60% in the following month. The expected cash collections for August is closest to: $551,880 $579,600 $919,800 July 7,300 $1,131,480 August September 11,500 14, 200

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

help completing this cash budget
Annapolis, Inc. has provided you with the following sales data. September October Budgeted unit sales 20,000 30,000 40,000 The company requires that 5% of the next month's sales be on hand at the end of each month. Budgeted production for October would be: 35,000 30,000 31,000 November December 31,500 50,000
7. Avalos Corporation makes one product with a selling price of $100 per unit. All sales are on credit with 40% collected in the month of sale and 60% in the following month. The company's sales budget follows: Budgeted sales in units: January February March 4,000 4,200 5,400 vbs What does the company expect to collect during February from its sales?
Please do not give solution in image format thanku
Aztec Company sells its product for $150 per unit. Its actual and budgeted sales follow. May (Actual) June (Budget) July (Budget) August (Budget) 4,000 $ 600,000 2,200 5,000 4,100 $ 330,000 $ 750,000 $ 615,000 Sales units Sales dollars All sales are on credit. Collections are as follows: 22% is collected in the month of the sale, and the remaining 78% is collected in the month following the sale. Merchandise purchases cost $110 per unit. For those purchases, 60% is paid in the month of purchase and the other 40% is paid in the month following purchase. The company has a policy to maintain an ending monthly inventory of 24% of the next month's unit sales. The May 31 actual inventory level of 1,200 units is consistent with this policy. Selling and administrative expenses of $155,000 per month are paid in cash. The company's minimum cash balance at month-end is $110,000. Loans are obtained at the end of any month when the preliminary cash balance is below $110,000. Any preliminary cash…
The Gingham Company's budgeted income statement reflects the following amounts: Sales Purchases $ 120,000 $ 78,000 110,000 66,000 125,000 81,250 84,500 January February March April 130,000 Sales are collected 50% in the month of sale, 30% the month following sale, and 19% in the second month following. sale. 1 percent of sales is uncollectible and expensed at the end of the year. Cash Gingham pays for all purchases in the month following purchase and takes advantage of a 3% discount. The following balances are as of January 1: Expenses $ 24,000 24,200 27,000 28,600 Accounts receivable * Accounts payable $ 88,000 58,000 72,000 *Of this balance, $35,000 will be collected in January and the remaining amount will be collected in February. The monthly expense figures include $5,000 of depreciation. The expenses are paid in the month incurred. 1) Gingham's expected cash balance at the end of January is: 2) Gingham's budgeted cash receipts in February are:
A company's budgeted sales and cash collections for Quarter 1 are listed below: January February March Cash Sales $93,000 $100,000 $85,000 Collections on credit sales are as follows: Month of sale A month after sale Second month after sale $1,278,000 $335,000 $428,000 $126,500 Credit Sales Answer. (Click to select) www.m (Click to select) None of the answers are correct. ? $260,000 $195,000 v Total Sales The accounts receivable balance on January 1 is $175,000, of which $75,000 represents uncollected December sales and $100,000 represents uncollected November sales astur um al Q. If the total cash collected in March was $320,000, then total January sales must have been: $360,000 $280,000 50% 40% 10%
XYZ Corp has the following sales budget: $195,550 $185,950 Sales budget They collect 60% of sales in the month of the sale, 20% in the first month after the sale, 15% in the second month after the sale, and 5% goes uncollected. What are the cash collections from sales in March? $206,050 January $205,000 $210,000 February $194,000 March $210,000
19. SalaRita's sales are 32% cash and 68% credit. Of the credit sales, 40% of credit sales are collected in the month of sale, 45% in the month following the sale, and 15% is collected two months after. Budgeted sales data is as follows: June July August $200,000 120,000 150,000 How much is total cash collected during August? A) $145,920 B) $105,120 C) $88,800 D) $144,000
Aztec Company sells its product for $180 per unit. Its actual and budgeted sales follow. Units Dollars April (actual) . 4,000 $ 720,000 May (actual) 2,000 360,000 June (budgeted) . 6,000 1,080,000 July (budgeted) 5,000 900,000 August (budgeted) . 3,800 684,000 All sales are on credit. Recent experience shows that 20% of credit sales is collected in the month of the sale, 50% in the month after the sale, 28% in the second month after the sale, and 2% proves to be uncollectible. The product’s purchase price is $110 per unit. 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly inventory of 20% of the next month’s unit sales plus a safety stock of 100 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,320,000 and are paid evenly throughout the year in cash. The company’s minimum cash balance at…
Aztec Company sells its product for $150 per unit. Its actual and budgeted sales follow. May (Actual) June (Budget) July (Budget) August (Budget) 6,000 4,100 $ 900,000 2,400 5,000 $360,000 $750,000 $ 615,000 Sales units Sales dollars. All sales are on credit. Collections are as follows: 24% is collected in the month of the sale, and the remaining 76% is collected in the month following the sale. Merchandise purchases cost $110 per unit. For those purchases, 60% is paid in the month of purchase and the other 40% is paid in the month following purchase. The company has a policy to maintain an ending monthly inventory of 22% of the next month's unit sales. The May 31 actual inventory level of 1,320 units is consistent with this policy. Selling and administrative expenses of $114,000 per month are paid in cash. The company's minimum cash balance at month-end is $140,000. Loans are obtained at the end of any month when the preliminary cash balance is below $140,000. Any preliminary cash…
Xcom is a small retailer that sells phone cases. The following estimates are available for the coming period: Month Budgeted Sales (Units) April 40,000 May 50,000 June 44,000 Notes: Opening cash balance for the month of May is expected to be $9,250. Inventory policy- ending inventory of finished goods equal to 25% of that month’s sales. Budgeted selling price per case- $40 Purchase price per case - $10 (purchase volume greater than 30,000 cases per month will receive a 5% discount). Collections from customers: 80% in the month of sale 20% one month after the sale Monthly operating expenses are budgeted at: Marketing $20,000 per month Sales commission (5% of Total Sales Collection for the month) Administration cost per month is $18,000. This includes depreciation of $2,000 per month. All expenses and purchases are paid in the month incurred unless otherwise specified. Required: For the month of May, you have been asked to prepare: Purchases…