The Foress Antique Mall budgeted credit sales in the first quarter of 2021 to be as follows:JanuaryFebruaryMarch$188,800200,600214,000Credit sales in December 2020 are expected to be $236,000. The company expects to collect 70 percent of a month's sales in themonth of sale and 30 percent in the following month.Estimate cash receipts for each month of the first quarter of 2021.Collection of credit salesCollection of December sales $Collection of January salesCollection of February salesCollection of March sales$January$$February$$MarchAcGo

Credit sales are the process of transfer of ownership of goods or services without any immediate…

Estimate cash receipts for each month of the first quarter of 2021. Collection of credit sales Collection of December sales $ Collection of January sales Collection of February sales Collection of March sales January tA February March

Estimate cash receipts for each month of the first quarter of 2021. Collection of credit sales Collection of December sales $ Collection of January sales Collection of February sales Collection of March sales January tA February March

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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Concept explainers

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.

Question

The Foress Antique Mall budgeted credit sales in the first quarter of 2021 to be as follows:
January
February
March
$188,800
200,600
214,000
Credit sales in December 2020 are expected to be $236,000. The company expects to collect 70 percent of a month's sales in the
month of sale and 30 percent in the following month.
Estimate cash receipts for each month of the first quarter of 2021.
Collection of credit sales
Collection of December sales $
Collection of January sales
Collection of February sales
Collection of March sales
$
January
$
$
February
$
$
March
Ac
Go

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Here is a forecast of sales by National Bromide for the first four months of 2022 (figures in $ thousands): Month 1 Month 2 Cash sales Sales on credit 16 110 25 130 Month 3 Month 4 19 100 15 80 On average, 51% of credit sales are paid for in the current month, 31% are paid in the next month, and the remainder are paid in the month after that. What is the expected cash inflow from operations in months 3 and 4? Note: Do not round intermediate calculations. Enter your answers in thousands and rounded to one decimal place. Items Month 3 Month 4 Expected Cash Inflow from Operations (in $ thousands)
Current Attempt in Progress Swifty Industries expects credit sales for January, February, and March to be $176,000, $208,000, and $240,000, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month. Credit Sales January February March $ January Collections from Customers February March
How much should this company expect in cash collections for the month of January? ROUND TO NEAREST WHOLE DOLLAR
the second quarter of 2021: Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements The company predicts that 5 percent of its credit sales will never be collected, 30 percent of its sales will be collected in the month of the sale, and the remaining 65 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. Purchases Wages, taxes, and expenses Interest In March 2021, credit sales were $190,000 and credit purchases were $130,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.) Equipment purchases April May June $320,000 $300,000 $360,000 128,000 151,000 176,000 Total cash disbursements 44,000 11,000 80,000 Ending cash balance 11,500 11,000 150,000 $…
Suppose that the Sales in December 2019 were 26,630. The sales are expected to grow by 7% in January 2020, by 5% in February 2020, and by 5% in March 2020. After that, the sales are expected to grow by 11%. The company's cash collection is as follows: 71% is collected in the same month and the remainder in the next month. What is the cash collection for July, 2020?
1. Calculate the expected cash collections for July. 2. Calculate the expected cash disbursements for merchandise purchases for July. 3. Prepare a cash budget for July.
How much is the company's expected cash collections in the month of May?
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3. Cash collection for month of February. SHOW WORK.