Good Job Oil Company was preparing its sales budget for the first quarter of coming year. Forecasted sales are, in thousands: P180,000 210,000 270,000 an Sales are 20% cash and 80% on credit, Fifty percent (50%) of the credit accounts collected in the month of sales, 40% in the month following the sale, and 10% in the followi month. No uncollectible accounts are anticipated. Accounts receivable at the beginning of| coming year are P96 million (10% x November credit sales of P200 million and 50% of Decemie January February March niemon sd credit sales of P152 million). Instructions: anibliod sinl adale Prepare a schedule showing sales and cash collections for January, February, and Man of the coming year.

Good Job Oil Company was preparing its sales budget for the first quarter of coming year. Forecasted sales are, in thousands: P180,000 210,000 270,000 an Sales are 20% cash and 80% on credit, Fifty percent (50%) of the credit accounts collected in the month of sales, 40% in the month following the sale, and 10% in the followi month. No uncollectible accounts are anticipated. Accounts receivable at the beginning of| coming year are P96 million (10% x November credit sales of P200 million and 50% of Decemie January February March niemon sd credit sales of P152 million). Instructions: anibliod sinl adale Prepare a schedule showing sales and cash collections for January, February, and Man of the coming year.

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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Valley's managers have made the following additional assumptions and estimates: Estimated sales for July and August are $345,000 and $315,000 respectively Each month's sales are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of the sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July Each month's ending inventory must equal 20% of the cost of the next month's sales. The Cost of Goods Sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July Monthly selling and administrative expenses are always $75,000. Each month $10,000 of this total amount is depreciation expense and the remaining $65,000 relates to expenses that are paid in the month they are incurred The company does not plan to buy or sell any plant and…
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Valley's managers have made the following additional assumptions and estimates: Estimated sales for July and August are $345,000 and $315,000 respectively Each month's sales are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of the sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July Each month's ending inventory must equal 20% of the cost of the next month's sales. The Cost of Goods Sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July Monthly selling and administrative expenses are always $75,000. Each month $10,000 of this total amount is depreciation expense and the remaining $65,000 relates to expenses that are paid in the month they are incurred The company does not plan to buy or sell…
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