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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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 Cash payments $ 519,000 $ 468,000 404,000 452,000 353,000 521,000 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)
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?
Nogueiras Corp's budgeted monthly sales are $6,000, and they are constant from month to month. 25% of its customers pay in the first month and take the 2% discount, while the remaining 75% pay in the month following the sale and do not receive a discount. The firm has no bad debts. Purchases for next month's sales are constant at 50% of projected sales for the next month. "Other payments," which include wages, rent, and taxes, are 25% of sales for the current month. Construct a cash budget for a typical month and calculate the average cash gain or loss during the month. Do not round intermediate calculations. a. $1,500 b. $1,380 c. $1,410 d. $1,493 e. $1,470
Primary Co. has budgeted sales of $228,000 in October and $312,000 in November. The company expects it will collect 70% of cash from sales in the month of the sale. The remaining 30% of cash will be collected the next month. What is the expected cash to be collected in November? $68,400 $286,800 $312,000 $253,200
Sunland Company estimates its sales at 180000 units in the first quarter and that sales will increase by 17000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at O $5273500. O $3026500. O $4387000. O $6057389.
12) ABSD INC.'s B.O.D's approved issuance of 5,000,000 share of $50 par value common stock. Currently 4,200,000 shares are outstanding. Current stock price is $60 A 4% stock dividend is declared on March 1, 2020 and paid two months later. Show journal entries required to record declaration and payment of distribution.
Janus Inc. needs to prepare a cash budget. The following are actual and forecasted sales figures: Actual Forecast November December January February March April $200,000 $220,000 $280,000 $320,000 $340,000 $330,000 Thirty percent of each month's sales are in cash, 50% are paid the month after sale and 20% are paid two months after sale. Materials cost 30% of sales and are purchased one month prior to sale and paid for 30 days later. Labor expense is 40% of sales, selling and administrative expenses are 5% of sales and both are paid in the month of sale. Overhead is $28,000 per month, depreciation expense is $10,000 per month. Taxes of $8,000 will be paid in January and dividends of $2,000 will be paid in March. Cash on hand at the beginning of January is $80,000 and the desired cash balance is $75,000. Prepare the cash budget for January – March.
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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 Cash payments $ 525,000 400,000 450,000 $ 475,000 350,000 525,000 Kayak requires a minimum cash balance of $30,000 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 $30,000 is used to repay Ibans at month-end. The company has a cash balance of $30,000 and a loan balance of $60,000 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 Less Cash payments for Interest on loan Total…
The following assumptions are made by a company when preparing its cash budget Invoices paid in the month after sales. Invoices paid in the second month after sale Invoices paid in the third month after sale Bad debts 50% 30% 15% 5% Invoices are issued on the last day of each month. Customers paying in the month after sale are entitled to deduct a 4% settlement discount. Credit sales values for August to November are budgeted as follows: August September October November $100 000 $120 000 $80 000 $70 000 The amount budgeted to be received from credit sales in November is ABCD ] $89 400 ] $91000 [ ] ] $100 000 $92 000