Dec. Year Jan. Year 2 Feb. Year 2 Mar. Year 2 1 (Actual) $70,000 $20,000 (Budgeted) $150,000 $ 35,000 (Budgeted) $165,000 $ 40,000 (Budgeted) $ 120,000 $ 22,000 Credit sales Cash sales Based on the company's collection history, 42% of credit sales are collected in month of sale, and the remainder is collected in the following month. Cash collections in January from December credit sales would be: Multiple Choice $40,600. $45,500. $62,000. $60,200.

Dec. Year Jan. Year 2 Feb. Year 2 Mar. Year 2 1 (Actual) $70,000 $20,000 (Budgeted) $150,000 $ 35,000 (Budgeted) $165,000 $ 40,000 (Budgeted) $ 120,000 $ 22,000 Credit sales Cash sales Based on the company's collection history, 42% of credit sales are collected in month of sale, and the remainder is collected in the following month. Cash collections in January from December credit sales would be: Multiple Choice $40,600. $45,500. $62,000. $60,200.

Name: Dec. YearJan. Year 2 Feb. Year 2Mar. Year 21(Actual)$70,000$20,000(Bu
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Description: Dec. YearJan. Year 2 Feb. Year 2Mar. Year 21(Actual)$70,000$20,000(Budgeted)$165,000$ 40,000(Budgeted)$ 120,000$ 22,000(Budgeted)Credit sales$150,000Cash sales$ 35,000Based on the company's collection history, 42% of credit sales are collected in mo

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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The BRS Corporation makes collections on sales according to the following schedule: 45% in month of sale 53% in month following sale 2% in second month following sale The following sales have been budgeted: Sales April $220, 000 $150,000 May June $140, 000 Budgeted cash collections in June would be: Multiple Cholce $140,000 $142,500 $146,900 $140,440
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Question 1 The following data apply to the HASF Hardware Store and its 2011 budget Forecast Sales Jan $200,000 Feb $160,000 Mar $180,000 Apr $45,000 Balance Sheet Data December 31,2010 Cash $80,000 Account receivable: November sales 45000 December sales 50000 Inventory 54000 Account payable(merchandise) 27000 Other data are as follows: Sales are on credit with 60% of sales collected in the same month after sale ,40% in the second month after sale Cost of goods sold is 50% of sales Other variables costs are 30% of sales paid in the month incurred Inventories are to be 80% of next month’s budgeted sales requirements Fixed expenses are $15000 per month; all require cash Credit time period for purchases are 30 days On basis of above information answer following questions Find fixed expense in the month of March?
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Joyner Company has the following historical collection pattern for its credit sales: 60% collected in month of sale 20% collected in the first month after sale 15% collected in the second month after sale 4% collected in the third month after sale 1% uncollectible Budgeted credit sales for the last six months of the year follow. July $49,000 August 54,000 September 59,000 October 64,000 November 69,000 December 61,500 Required: -A. Calculate the estimated total cash collections during October. B. Calculate the estimated total cash collections during the year's fourth quarter. A. Total cash collections during October B. Total cash collections during the year's fourth quarter
Problem 01:4 ZYX has total sales for June and July of $30,000 and $25,000, respectively. Cash sales are normally 40% of total sales. Of the credit sales, 40% are collected in the same month as the sale, 50% are collected during the first month after the sale, and the remaining 10% are collected in the second month. Determine the amount of accounts receivable reported on the company's budgeted balance sheet as of July 31.
Graham Potato Company Cash Budget November December Total cash receipts Total cash payments 5,000 Net cash flow $5,000 $0 Beginning cash balance Cumulative cash balance $5,000 $0 Monthly borrowing (repayment) Ending cash balance $5,000 $0 Cumulative loan balance Graham Potato Company has projected sales of $11,400 in September, $14,500 in October, $21,400 in November, and $17,400 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham’s cash payments for November and December are $18,000 and $10,500, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance b. Prepare a cash budget with borrowing needed or repayments for November and…
Question 2 A. The Rilex and Chill Coffee Shop has requested a cash budget for August. After examining the records of the company, you find the following: 1. Cash balance on 1 August is RM43,280. 2. Actual sales for June and July are as follows: June RM Cash sales Credit sales Total sales 10,200 26,100 36,300 July RM 14,700 33,900 48,600 3. Credit sales are collected over three months: 30% in the month of sales, 40% in the second month, and 25% in the third month. The customers who paid in the month of sales are qualified for 3% discounts on the amount owed. While the sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible. 4. Inventory purchases average 80% of a month's total sales. Of those purchases, 60% are paid for in the month of purchase. The remaining 40% is paid for in the following month. 5. Salaries and wages total RM13,800 per month. 6. The company received interest…