Digregory makes all purchases on account, subject to the following payment pattern: Paid in the month of purchase: 20% Paid in the first month following purchase: 50% Paid in the second month following purchase: 30% If purchases for January, February, and March were $208,000, $188,000, and $238,000, respectively, what were the firm's budgeted payments in March? $47,600. $119,000. $141,600. $204,000. Some other amount.

Digregory makes all purchases on account, subject to the following payment pattern: Paid in the month of purchase: 20% Paid in the first month following purchase: 50% Paid in the second month following purchase: 30% If purchases for January, February, and March were $208,000, $188,000, and $238,000, respectively, what were the firm's budgeted payments in March? $47,600. $119,000. $141,600. $204,000. Some other amount.

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

A company requires a minimum $12,400 cash balance at each month-end. If necessary, a loan is taken to meet this requirement at a cost of 1% interest per month (paid at the end of each month). Any preliminary cash balance above $12,400 is used to repay loans at month-end. The cash balance on March 1 is $12,400, and the company has no outstanding loans. Budgeted cash receipts from sales are: March, $26,000; April, $32,400; and May, $41,000. Budgeted cash payments (excluding loan or interest payments) are: March, $30,000; April, $30,200; and May, $32,400. Required: Prepare a cash budget for March, April, and May. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar. Beginning cash balance Add: Cash receipts from sales Total cash available Add: Cash receipts from sales Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance,…
Drago makes all sales on account, subject to the following collection pattern: 40% are collected in the month of sale; 50% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for January, February, and March were $80,000, $120,000, and $180,000, respectively, what were the firm's budgeted collections for March? A. $72,000 B. $120,000 C. $174,000 D. $180,000 E. $140,000
Assume the following budgeted information for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $241,000, $211,000, and $202,000, respectively. Cash collections of credit sales are expected to be 75% in the month of sale and 25% in the month following the sale. The cost of goods sold is always 65% of sales. Each month’s ending inventory equals 20% of next month’s cost of goods sold. 40% of each month’s merchandise purchases are paid in the current month and the remainder is paid in the following month. Monthly selling and administrative expenses that are paid in cash in the month incurred total $21,500. Monthly depreciation expense is $21,000. The expected cash collections from customers in December are:
jagdish
Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and Interest payments) for the first three months of next year. January February March Cash Receipts $ 522,000 402,000 465,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, Interest per month, paid at each month-end. The Interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Beginning cash balance Add: Cash receipts Total cash available Total cash payments Preliminary cash balance Loan activity Interest on loan Ending…
Flingen Inc. reveals the following information in their annual report for FY 2021 Selected Income Statement Items: Sales $10,500,000 Cost of goods sold $5,500,000 Pretax earnings $650,000 Selected Balance Sheet Items: Merchandise inventory $800,000 Total assets $2,500,000 Upper management plans to cut cost of goods sold by 4.5% for the coming year but retain the same sales and weeks of inventory. What is the return on assets estimated to be for 2022? Group of answer choices 33.7% 32.1% 36.8% 34.1%
Kent Company has a sales budget for next month of $1,000,000. Cost of goods sold is expected to be 25 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of merchandise is $50,000, and an ending inventory of $64,000 is desired. Beginning accounts payable is $160,000. For Kent Company, the ending accounts payable should be: Select one: O A. $341,000 B. $414,000 C. $264,000 D. $356,000
Parvis makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 50% are collected in the first month after sale; and 20% are collected in the second month after sale. If sales for October, November, and December were $78,000, $68,000, and $58,000, respectively, what was the budgeted receivables balance on December 31? Multiple Choice O $67,000 None of the answers is correct. $54,200. $49,600. $40,600
The following data are from the budget of Ritewell Publishers. Half the company's sales are transacted on a cash basis. The other half are paid for with a 1-month delay. The company pays all of its credit purchases with a 1-month delay. Credit purchases in January were $140, and total sales in January were $290. TT February March $ 420 April Total sales $ 440 $ 400 125 135 115 Cash purchases Credit purchases Labor and administrative purchases Taxes, interest, and dividends Capital expenditures 95 85 95 85 85 85 65 65 65 210 Complete the following cash budget. (Leave no cells blank. Enter '0' when necessary. Negative amounts should be indicated by a minus sign.) February March Aprit Sources of cash Collections on current sales Collections on amounts receivable Total sources of cash 0 $ Uses of cash Payments of accounts payable Cash purchases o search
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?
n Fraser Company has forecast purchases on account to be $210,000 in March, $270,000 in April, $320,000 in May, and $390,000 in June. Seventy percent of purchases are paid for in the month of purchase, the remaining thirty percent are paid in the following month. What are budgeted cash payments for April? bus page O a. $252,000 O b. $285,000 O c. $126,000 O d. $159,000 Type here to search X £ 3 E 4 D R O Bl % 5 F J JC U IL 20 # 6 & DU JU G H B U N 8 H K Time left 0:35: M Next page 28°C Ma
OBUTJX493 Corporation's operational data are below: Sales are budgeted at $ 260,000 for November, $327,000 for December, and $210,000 for January. All sales are credit sales Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible. The cost of goods sold is 65% of sales. The OBUTJX493 company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. December cash disbursements for OBUTJX493's merchandise purchases would be: