Marga Corporation has the following historical pattern of credit sales 70% during the month of sald 15% in the first month after sale 10% Ip the second month after sale 4% in the third month arter såle 1% uncollectible Sales on açcount for the last six months of the year were reported as follows: P180,000 200,000 July October Novermber December P120,000 August 140,000 Septembe Required: 1. Compute for the total cash collections during the 4 calendar quarter. 2. A/R balance on the Balance Sheet as of Dec. 31 SAPIENTIA EDIFICAT

Marga Corporation has the following historical pattern of credit sales 70% during the month of sald 15% in the first month after sale 10% Ip the second month after sale 4% in the third month arter såle 1% uncollectible Sales on açcount for the last six months of the year were reported as follows: P180,000 200,000 July October Novermber December P120,000 August 140,000 Septembe Required: 1. Compute for the total cash collections during the 4 calendar quarter. 2. A/R balance on the Balance Sheet as of Dec. 31 SAPIENTIA EDIFICAT

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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Sy Co. has the collection schedule of 65% during the month of sales, 15% the following month, and 15% subsequently. The total credit sales in March were P210,000 and total collections in March were P198,000. Credit sales in January and February are equal. How much of the January credit sales are expected to be collected in February? P20,500 В P10,500 P21,000 P30,750
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Cost of Trade Credit Grunewald Industries sells on terms of 2/10, net 50. Gross sales last year were $4,526,000 and accounts receivable averaged $434,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost of trade credit: % Effective cost of trade credit: %
d) Inter accounts national Industries sells on terms of 3/10, net 50. Gross sales last year were 5,662,500 and receivable averaged 547,500. Half of International’s customers paid on the 15th day and took discounts. What are the nominal and effective costs of trade credit to International’s non-discount customers? (Hint: Calculate sales/day based on a 360-day year, then calculate average receivables of discount customers and then find the DSO for the non-discount customers.
Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $170 $185 $200 $225 Sales for the first quarter of the year after this one are projected at $180 million. Accounts receivable at the beginning of the year were $71 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 25 percent of sales. Interest and dividends are $14 million per quarter. Wildcat plans a major capital outlay in the second quarter of $85 million. Finally, the company started the year with a $54 million cash balance and wishes to maintain a $30 million minimum balance. Assume that Wildcat can borrow any needed funds on a short-term basis at a rate of 3 percent per quarter and can Invest any excess funds in short-term marketable securities at a rate of 2 percent per…
omework (required) Anderson Corporation has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Anderson Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 18% received two months after the sale 7% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 18% Two months after Total cash collections Anderson Corporation Cash Collections Budget For the Months of January through March January February $ $ 33,000 Part 2 of 4 33,000 50,000 12,960 128,960 Points: 0.2 of 2 January sales.. February sales March sales. November sales for last year were $90,000, while December sales were $125,000. Projected sales for the next three months are as follows: Save $ 165,000 $ 130,000 $ 200,000 Requirement Prepare a cash collections budget for the first quarter, with a column for each month…
Please Solve This Question International Industries sells on terms of 3/10, net 50. Gross sales last year were 5,662,500 and accounts receivable averaged 547,500. Half of International’s customers paid on the 15th day and took discounts. What are the nominal and effective costs of trade credit to International’s non-discount customers? (Hint: Calculate sales/day based on a 360-day year, then calculate average receivables of discount customers and then find the DSO for the non-discount customers.
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Top Sdn Bhd had cash of RM13,000 on hand together with trade debtors outstanding balance of RM55,000 as at January 1. During the year, the company expected the following sales to customers by quarter, with collection terms of 50% in cash and 50% in credit receivable in the next quarter: First Second Third Fourth Sales (RM) 110,000 245,000 122,400 149,600 Direct materials purchases in metric tons (MT) costing RM 50.00 per MT payable in the same quarter are as follows: First Second Third Fourth Direct Materials Purchases (MT) 1,300 1,500 1,100 1,000 The production budget showed the following unit production by quarter with an average labour wage rate of RM40.00 payable in the same quarter: First Second Third Fourth Units to be produced 1,500 2,000 1,700 1,500 Top Sdu Bhd planned to pay dividends of RM10,000 per quarter during the year. In July, a new equipment costing RM60,000 will be purchased. An additional cost of RM16,000 was planned for its installation during the fourth quarter.…