Lee Verly will be opening his company called LV Catering in January of the next year. He predicts that January, February and March will generate $135,000, $120,000 and $165,000 worth of sales respectively. The company expects to sell 35% of its products for cash. Of the sales on account, 55% are expected to be collected in the month of the sale, 25% in the month following the sale and the remainder in the following month. Prepare the cash receipts section of the cash budget. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. LV Catering Cash Receipts For January, February and March January February March Cash sales $Answer $Answer $Answer Collections from credit customers $Answer $Answer $Answer Total Cash Receipts $Answer $Answer $Answer

Lee Verly will be opening his company called LV Catering in January of the next year. He predicts that January, February and March will generate $135,000, $120,000 and $165,000 worth of sales respectively. The company expects to sell 35% of its products for cash. Of the sales on account, 55% are expected to be collected in the month of the sale, 25% in the month following the sale and the remainder in the following month. Prepare the cash receipts section of the cash budget. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. LV Catering Cash Receipts For January, February and March January February March Cash sales $Answer $Answer $Answer Collections from credit customers $Answer $Answer $Answer Total Cash Receipts $Answer $Answer $Answer

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...

See similar textbooks

Similar questions

If the sales forecast estimates that 50,000 units of product will be sold during the following year, should the factory plan on manufacturing 50,000 units in the coming year? Explain.
Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
Lee Verly will be opening his company called LV Catering in January of the next year. He predicts that January, February and March will generate $170,000, $120,000 and $190,000 worth of sales respectively. The company expects to sell 15% of its products for cash. Of the sales on account, 50% are expected to be collected in the month of the sale, 25% in the month following the sale and the remainder in the following month. Prepare the cash receipts section of the cash budget. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. LV Catering Cash Receipts For January, February and March January February March Cash sales $Answer $Answer $Answer Collections from credit customers $Answer $Answer $Answer Total Cash Receipts $Answer $Answer $Answer Please don't provide answer in image format thank you
Lee Verly will be opening his company called LV Company in January of the next year. He predicts that January, February and March will generate $105,000, $140,000 and $105,000 worth of sales respectively. The company expects to sell 40% of its products for cash. 55% of the sales on account are expected to be collected in the month of the sale, 25% in the month following the sale and the remainder in the following month. Prepare the cash receipts section of the cash budget. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. LV Company Cash Receipts For January, February and March January Cash sales 42000 Collections from credit customers $34650 Total Cash Receipts 76650 February $56000 March ✓ $42000 x x
AB has generated $150,000 in sales during the past few months and expected the level of sales willcontinue for the next year. Based on the firm’s past experience, 30% of the sales will be collected in the month of the sale and these customers will take the 4% cash discount offered for early payment. 70% of the remaining sales will becollected one month after the sale. AB normally purchases and pays for raw materials which is 70% of sales, in the same month the finished goods are sold. Wages of AB employees represents 15% of sales and monthly rent is $10,000. At present, the firm has no cash but its target balance is $6,000. ConstructAB'S cash budget for the next three months.
Nazmi Shah Sdn Bhd wishes to expand its business by opening an additional two more stores and needs to apply a bank loan. Therefore, there is needed to prepare an acceptable three-month financial plan for January until March. The following are sales and purchase information: 40 percent of the sales incurred are cash sales, while the balance are credit sales and will be collected equally for the second and third month after the sales. Nazmi Shah pays 50 percent of its purchase immediately and the balance will be paid in the month after purchases. Additional information: i. Labor expenses are 10 percent of the current month’s sales.ii. Overhead expenses are recorded at RM10,000 per month.iii. Interest payments of RM8,000 are due in January and March.iv. A cash dividend of RM40,000 is scheduled to be paid in February.v. Depreciation expenses are RM10,000 per month.vi. Tax payment of RM25,000 are due in January and April.vii. Purchase a new asset of RM40,000 in January…
Star Company was organized on August 1 of the current year. Projected sales for the next three months are as follows: August $250,000 September 200,000 October 275,000 The company expects to sell 50% of its merchandise for cash. Of the sales on credit, 30% are expected to be collected in the month of the sale and the remainder in the following month. What is Star Company expected cash collection for September?
Vertical Ladder Company (VLC) forecasts its sales for January through April will be $60,000, $70,000, $100,000, and $90,000, respectively. All sales are made on credit, and it is expected that 20 percent of sales will be collected in the month of the sale and the remainder will be collected the month following the sale. Customers who pay in the month of the sale will take the 4 percent cash discount VLC offers for paying early. VLC normally purchases and pays for raw materials, which cost 60 percent of sales, one month prior to selling the finished products. Employees' wages represent 30 percent of sales and rent is $4,000 per month. At the beginning of February, VLC expects to have $6,000 in cash, which is $2,000 greater than its target cash balance. Using the information provided, construct VLC's cash budget for February and March. Round your answers to the nearest dollar. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". February March…
Rose Turkish company is a new company and will start to operations in January, 2022. Its beginning cash balance is 5.000 TL It plans to sell 1000 boxes at 20 each month. 90of the sales will be in cash 10% of sales will be collected in the following month. In January, short term investment will be sold at 10,000 in cash Production costs will be 20, 000 and selling and administrative expenses will be 10, 000TL in January and all will be paid in cash Production costs will be 20.000 TL and selling and administrative expenses will be 5,000 February and all will be paid in cash Minimum cash balance is 5,000 Prepare a cash budget for January and February 2022
Danner Inc. has projected sales to be $100,000 in June, $90,000 in July, and $70,000 in August. Danner collects 50% of a month's sales in the month of sale, 30% in the month following the sale, and 18% in the second month following the sale. Cash collections in August would be
Austin Computers company sales in December 2018 were $80,000 and they are expected to rise by $5,000 per month for the next 5 months. Of sales, 80 per cent are collected during the month of sale and the rest two months after sales. The cost of sales is 60 per cent of sales and, the company plans to keep an inventory at the end of each month equal to 40 per cent of the anticipated sales for the next month’s sales. Suppliers are paid one month after purchases are made. Monthly wages amount to $4,500, rent and heating $750 and depreciation $600. A machine is to be bought in March for $6,000 paid in cash. The purchase of the machine means that the monthly change for depreciation will increase by $40. The inventory held at January 1st is $15,500. Required: Calculate the estimated cash collection from sales for February and March. Calculate the purchases for February and March. Assuming that the cash balance at 31/01/2019 is $10,000; prepare a cash budget for the two months ending March…
Yanimize company sales in December 2018 were $70,000 and they are expected to rise by $4,500 per month for the next 5 months. Of sales, 80 per cent are collected during the month of sale and the rest two months after sales. The cost of sales is 60 per cent of sales and, the company plans to keep an inventory at the end of each month equal to forty per cent of the anticipated sales for the next month’s sales. Suppliers are paid one month after purchases are made. Monthly wages amount to $4,000, rent and heating $700 and depreciation $600. A machine is to be bought in March for $5,000 paid in cash. The purchase of the machine means that the monthly change for depreciation will increase by $40. The inventory held at January 1st is $14,400. Required: Calculate the estimated cash collection from sales for February and March. Calculate the purchases for February and March. Assuming that the cash balance at 31/01/2019 is $8,000; prepare a cash budget for the two months ending March 31,…