Grit Company was formed on May 1, 2023. During May, 2023, the company reported sales on account of $750,000. During June, 2023, Grit Company reportes sales on account of $800,000. Anticipatedcollections patterns of accounts receivable indicate 40% will be collected in the month of sale, 10% in the next month, and the remainder in the following month. How much will appear on the cash receiptsand disbursements budget prepared for June, 2023?$620,000O $465,000O $545,000O $540,000

Sales Data:May 2023 Sales: $750,000June 2023 Sales: $800,000Collection Pattern:40% collected in the…

Answered: Grit Company was formed on May 1, 2023.…

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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Eastern Enterprises is preparing a cash budget for June. Eastern has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Eastern Enterprises has an agreement with its bank to maintain a cash balance of at least $10,000. As of May 31, Eastern owes $15,000 to the bank. To maintain the $10,000 required balance, during June Eastern must: Group of answer choices: 1)Borrow $10,000. 2)Borrow $ 2,500. 3)Repay $ 2,500. 4)Borrow $ 4,500. 5)Repay $ 7,500.
Here is a forecast of sales by National Bromide for the first four months of 2022 (figures in $ thousands). Month 1 Month 2 25 34 200 220 Month 3 28 Month 4 24 190 170 Cash sales Sales on credit On average, 45% of credit sales are paid for in the current month, 25% 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 whole dollars and not in thousands rounded to the nearest whole number. Answer is complete but not entirely correct. Expected Cash Inflow from Operations (in S thousands) Items Month 3 Month 4 $ 391 360
Please show work2 and follow instructions
Crane Corporation is projecting a cash balance of $31,800 in its December 31, 2024, balance sheet. Crane's schedule of expected collections from customers for the first quarter of 2025 shows total collections of $196, 100. The schedule of expected payments for direct materials for the first quarter of 2025 shows total payments of $45, 580. Other information gathered for the first quarter of 2025 is sale of equipment $3, 180; direct labor $74, 200, manufacturing overhead $ 37,100, selling and administartive expenses $47,700; and purchase of securities $14,840. Crane wants to maintain a balance of at least $26, 500 cash at the end of the quarter. Prepare a cash budget for the first quarter.
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