Eastern Auto Parts Incorporated has 20 percent of its sales paid for in cash and 80 percent on credit. All credit accounts are collected in the following month. Assume the following sales: January $ 82,000 February 72,000 March 117,000 April 62,000 Sales in December of the prior year were $92,000. Prepare a cash receipts schedule for January through April.

Q: Jasper Company has 61% of its sales on credit and 39% for cash. All credit sales are collected in…

A: Cash receipts are those which are collected by the entity from the sales of previous or current…

Q: Prepare a schedule of cash receipts from sales for April, May, and June.

A: To prepare a schedule of cash receipts from sales for April, May, and June, we need to consider the…

Q: Jasper Company has 62% of its sales on credit and 38% for cash. All credit sales are collected in…

A: April May June  Cash sales 38%  $196,460  $200,260 $209,760   Sales on…

Q: The Professional Service Company expects 80% of sales for cash and 20% on credit. The company…

A: The objective of the question is to calculate the total cash receipts for the Professional Service…

Q: The management of Sheffield Industries estimates that credit sales for August, September, October,…

A: Cash collection means the amount of money estimated to be collected by the entity from the sales of…

Q: Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that…

A: WORKING NOTE : 1) The cash sales for any month will be: 0.20 * Sales of that month. 2) Cash…

Q: A company has the following collection pattern: month of sale, 30%; month following sale, 70%. If…

A: Cash collection budget :— This budget is prepared to estimate the cash collection of sales from the…

Q: Bark & Purr Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for…

A: Budget means the expected value of future. Budget is not affected by the actual value as it is…

Q: Schedule of cash collections of accounts receivable OfficeMart Inc. has "cash and carry" customers…

A: Cash BudgetThe estimates of cash received and cash payments for the future accounting periods are…

Q: Prepare a schedule indicating cash collections from sales for May, June, and July.

A: Sale made on account is nothing but credit sales. Subsequent collection from debtors depends credit…

Q: OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25%…

A: A cash budget is an estimation of expected cash receipts and disbursements on the basis of past…

Q: Jasper Company has 63% of its sales on credit and 37% for cash. All credit sales are collected in…

A: Lets understand the basics.Management prepares budget in order to estimate future profit and loss…

Q: chedule of Cash Collections from Sales or the Three Months Ending December 31 October November…

A: Schedule of cash collections shows the cash receipts and cash inflows from different customers.…

Q: At the end of September a company has cash balance of $800, trade receivables of $12000 and trade…

A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…

Q: Jasper Company has 61% of its sales on credit and 39% for cash. All credit sales are collected in…

A: Cash budgets projected cash balances, borrowing needs and projected repayments of borrowing.the cash…

Q: UIO Company makes all of its sales on account. UIOcollects its account as follows: 20% in the month…

A: The account receivables are the assets of the business which would be converted into cash within one…

Q: Jasper Company has 59% of its sales on credit and 41% for cash. All credit sales are collected in…

A: Cash Budget: Cash Budget is prepared to analysis the cash transaction or cash flow of business.…

Q: Schedule of Cash Collections of Accounts Receivable Office World Inc. has "cash and carry" customers…

A: Effective resource allocation includes the use of budgeting to allocate money, labor, and supplies.…

Q: March 45,000 85% of sales are collected in the month of the sale and the remainder is collected in…

A: particulars  amount $ Cash balance $     25,000.00 add:customer collection  $58,950…

Q: Power Ridge Corporation has forecast credit sales for the fourth quarter of the year as follows:…

A: Cash receipt schedule is an important tool any firm can use. One can estimate the receipt of the…

Q: Simpson Glove Company has made the following sales projections for the next six months. All sales…

A: Cash budgets are prepared the management to estimate the total amount of receipts and collections…

Q: company has expected sales for January through April of $9,800, 59, 500, $13, 800, and $9,500,…

A: The company's sales collection process takes 36 days. This means that on the first day of May, the…

Q: ge Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected…

A: Cash Receipts from Customers is based on budgeted cash receipts that is estimated on specific…

Q: Simpson Glove Company has made the following sales projections for the next six months. All sales…

A: Budget means the expected value of future. Budget will be compared with actual value and variance is…

Q: Halifax Shoes has 39% of its sales in cash and the remainder on credit. Of the credit sales, 65% is…

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: Assume receivables of $20,000 at the start of the January are all collected during the month; if…

A: When a sale is made and cash is received at the time of sale it is referred to as cash sale, however…

Q: The management of Marigold Industries estimates that credit sales for August, September, October,…

A: The cash collection is done as per the collection schedule.  Collection for October include 25% of…

Q: Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers…

A: A cash sale is a sale where the consideration(money) is received immediately for the goods sold or…

Q: Office World Inc. has “cash and carry” customers and credit customers. Office World estimates that…

A: The Schedule of Collections from Sales shows the amount to be collected from the customers during a…

Q: Prince Charles Island Company has expected sales of $6,000 in September, $10,000 in October, $16,000…

A: A cash budget is a budget that provides information about the company's projected cash inflows and…

Q: alifax Shoes has 33% of its sales in cash and the remainder on credit. Of the credit sales, 65% is…

A: Companies gives credit to the customers and customers pay later on so cash money is blocke in credit…

Q: Jasper Company has 59% of its sales on credit and 41% for cash. All credit sales are collected in…

A: Cash collection budget :— This budget is prepared to estimate the collection of sales from…

Q: Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are…

A: The objective of the question is to calculate the total cash receipts for Page Company in Month 4.…

Q: Jasper Company has 62% of its sales on credit and 38% for cash. All credit sales are collected in…

A: The cash collection schedule is prepared to estimate the cash collection from customers during the…

Q: J. Lo's Clothiers has forecast credit sales for the fourth quarter of the year: Fourth Quarter…

A: Clothiers for the fourth quarter, has the following amounts:September (actual): $73,000October:…

Q: A company budgets the following merchandising purchases: Aprit $70.000, May $90,000; June: $60,000…

A: The accounts payable represents the amount due to suppliers during the period. The purchase of…

Q: Nonna's Re-Appliance Store collects 54% of its accounts receivable in the month of sale and 36% in…

A: Budgeted cash collection is the expected cash is to be collected in a particular month for the…

Q: Eastern Auto Parts Inc. has 20 percent of its sales paid for in cash and 80 percent on credit. All…

A: Solution:- Cash receipt budget is the budget prepared to forecast the upcoming cash receipts by the…

Q: Jasper Company has 57% of its sales on credit and 43% for cash. All credit sales are collected in…

A: Cash sales will be received in same month in which sakes were made. Where's credit sales will be…

Q: Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers…

A: Cash collections refer to the process of receiving and recording payments from customers for goods…

Q: Jasper Company has 56% of its sales on credit and 44% for cash. All credit sales are collected in…

A: A cash Budget is prepared to analyze the cash transaction or cash flow of the business. Non-cash…

Q: At Lyman Company, past experience reveals that 10% of sales are for cash and the remaining 90% are…

A: Cash collection budget is one of the important budget being prepared in business to show cash to be…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.