Estimated sales for the next four months are as follows (in $ million): Month Cash sales Credit sales 1 0+ decimals 39.59 79.18 Save 2 42.36 63.54 3 45.33 67.99 The firm collects 10% of credit sales in the month of the sale and the remainder in the following month. Part 1 What are total cash collections in month 2 (in $ million)? 4 48.5 72.75 Part 2 What are total cash collections in month 3 (in $ million)? Attempt 1/1 Attempt 1/1

Estimated sales for the next four months are as follows (in $ million): Month Cash sales Credit sales 1 0+ decimals 39.59 79.18 Save 2 42.36 63.54 3 45.33 67.99 The firm collects 10% of credit sales in the month of the sale and the remainder in the following month. Part 1 What are total cash collections in month 2 (in $ million)? 4 48.5 72.75 Part 2 What are total cash collections in month 3 (in $ million)? Attempt 1/1 Attempt 1/1

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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Problems: (A) Understanding Receivables: ABC sells on credit terms of 2/10, n/30. Daily sales average 200 units at P2,500 each throughout the 365-day year. All sales are on credit. On average, 40% take the cash discount by paying on tenth day while the remaining 60% pay on the 30th day. It is planning to change the credit terms to 2/10, n/25. If this change was done, daily sales will be 180 units. Around 45% will pay on the tenth day while the remaining 55% will pay on the 25n day. 1. What is the original average accounts receivable balance based on the given? 2. What is the original average collection period of the receivables in days? 3. What is the original receivable turnover? Round off to two decimal places.
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year. 04 $480 Sales 01 $ 210 02 $ 270 a. Accounts receivable at the beginning of the year are $480. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Beginning receivables Sales Cash collections Ending receivables $ Beginning receivables S Sales Cash collections Ending receivables 03 $ 330 Beginning receivables Sales Cash collections Ending receivables Q1 S Q1 480 210 585 105 $ 01 Answer is complete and correct. 480 210 $ 00 480 210 Q2 105 $ 270 b. Accounts receivable at the beginning of the year are $480. The company has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the…
Problem 4 Assume the foilowing are the projected sales of ABC company: MONTH AND YEAR PROJECTED SALES $ 120,000 April 20X1 May 20X1 100,000 June 20X1 80,000 50,000 July 20X1 August 20X1 September 20X1 60,000 90,000 150,000 October 20X1 Additional information: 80 percent of sales are on credit basis. 30 percent of the accounts receivables are are collected during the second month of sale. collected in one month and the remaining Material cost accounts for 25 percent of sales, V Salary expense accounts for 15 percent of sales, and V Production overheads accounts for 15 percent of sales. Required: based on the above information determine: on August? Company on June?
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The cash receipt for each month as follows: Month 1 4,000 Month 2 6,000 Month 3 5,000 Month 4 7,000 Total sales 22,000 Purchases 2$ Month 1 6,000 Month 2 6,000 Month 3 4,000 Month 4 5,000 Total Purchases 21,000 The company has beginning cash for the of month 2 dollar 5967. the company has minimum cash Dollar 4696. What is amount of fun for the of 3? Answer:
Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $170 $185 $200 $225 Sales for the first quarter of the year after this one are projected at $180 million. Accounts receivable at the beginning of the year were $71 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 25 percent of sales. Interest and dividends are $14 million per quarter. Wildcat plans a major capital outlay in the second quarter of $85 million. Finally, the company started the year with a $54 million cash balance and wishes to maintain a $30 million minimum balance. Assume that Wildcat can borrow any needed funds on a short-term basis at a rate of 3 percent per quarter and can Invest any excess funds in short-term marketable securities at a rate of 2 percent per…
omework (required) Anderson Corporation has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Anderson Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 18% received two months after the sale 7% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 18% Two months after Total cash collections Anderson Corporation Cash Collections Budget For the Months of January through March January February $ $ 33,000 Part 2 of 4 33,000 50,000 12,960 128,960 Points: 0.2 of 2 January sales.. February sales March sales. November sales for last year were $90,000, while December sales were $125,000. Projected sales for the next three months are as follows: Save $ 165,000 $ 130,000 $ 200,000 Requirement Prepare a cash collections budget for the first quarter, with a column for each month…
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Question The following information is from Teas Window’s financial records. The company buys its raw material on account and pays: 50% of accounts payable during the month of purchase 40% in the first month after purchase 10% in the second month after purchase Month Purchases april 80,000 may 92,000 june 93,000 july 97,000 Compute the estimated total cash disbursements during July. Show your calculations
What would be the cash disbursements for month 3? Description Month 1 Month 2 Month 3 Month 4 Material Purchases $ 175,000.00 $ 185,000.00 $ 215,000.00 $ 190,000.00 Amount paid in month of purchase 65.00% Amount paid in month after purchase 30.00% Amount paid two months after purchase 5.00% Discounts in month of purchase 3.50% Discount in month after purchase 1.00% Total Cash disbursements in month 3 Show your work below Description Month 1 Month 2 Month 3
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