left 0:3 Fraser Company has forecast purchases on account to be $210,000 in March, $270,000 in April, $320,000 in May, and $390,000 in June. Seventy percent of purchases are paid for in the month of purchase, the remaining thirty percent are paid in the following month. What are budgeted cash payments for April? O a. $252,000 O b. $285,000 O c. $126,000 O d. $159,000

left 0:3 Fraser Company has forecast purchases on account to be $210,000 in March, $270,000 in April, $320,000 in May, and $390,000 in June. Seventy percent of purchases are paid for in the month of purchase, the remaining thirty percent are paid in the following month. What are budgeted cash payments for April? O a. $252,000 O b. $285,000 O c. $126,000 O d. $159,000

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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M22-20. Cash Budget Patrick's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows: Month January. February. Sales Revenue $250,000 350,000 Cash balance, beginning $. Total Cash receipts Cash available All sales are on credit; 75% is collected during the month of sale, and 25% is collected during the next month. Cost of goods sold is 70% of sales. Payments for merchandise sold are made in the month fol- lowing the month of sale. Operating expenses total $125,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $55,000. Required Prepare monthly cash budgets for February, March, and April. Patrick's Retail Company Cash Budgets February, March, and April February March 55,000 $ 205,000 * $ 387,500 245,000 * 125,000 x 222,500 x $ Total disbursements Cash balance, ending $ Month March April 262,500 x 175,000 * 125,000 * 205,000 * $ Sales Revenue $400,000 375,000 April 222,500 x 381,250…
The following sales are predicted for a company’s next four months.
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 $42,000 and $71,000, respectively. The company expects to collect 45% of its credit sales in the month of the sale, 50% in the following month, and 5% is deemed uncollectible. What amount of cash collections from credit sales would the company include in its cash budget for the second month? Multiple Choice $56,500 $31,950 $35,500 $52,950
32. YZ Company has provided the following budgeted-information for the month of January $250,000 $150,000 $200,000 $108,400 Sales Costs of goods sold Cash collections from customers anticipated in January Inventory purchases to be paid in January Expected January cash payments for selling and administrative expenses Cash dividends to be declared in January and to be paid in February January depreciation expense Interest income from investments to be received in cash in January Production equipment purchase 70% of which will be paid in January and the balance will be paid in February January 1, cash balance No borrowing or repayment of loans will be made in January. How much is the expected cash balance at the end of January? 570400 951 200 A) $74,400 B) $175,000 $119,200 D) $34,800 $45,200 $36,000 $19,200 $8,400 $132,000 $112,000 119 200 X
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How do I prepare a schedule of cash collected from customers for the quarter ended March 31, 20X1?
7 Benton Company's sales budget shows the following expected total sales: Month Sales January $17,000 February $21,000 March April The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 69% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be: Multiple Choice O $26,000 $49,000 O O $21,165. $35,200. $33,952. Check $25,725.
The information in the following table is from a company's sales budget Expected sales April May June $ 96,000 116,000 126,000 Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in June OAS118,500 O $31,500 OC$213,000 005126,000 O $87,000
vnt.2 Matthew Company has a sales budget for last month of $400,000. Cost of goods sold is expected to be 40% of sales. All units are paid for in the month following purchase. The beginning inventory is $5,000 and an ending inventory of $12,000 is desired. Beginning accounts payable is $76,000. The costs of goods solf for the next month is a) $220,000 b) $160,000 c) $172,000 d) $140,000
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