Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. Itsells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The followinginformation is available for several months of the current year:MonthMayJuneJulyAugustSales$ 95,000122,000134,000130,000Purchases$ 65,00091,000112,00076,000Cash ExpensesPaid$ 18,00029,50037,50034,300The majority of Martin's sales (60 percent) are cash, but a few of the excursion companies purchase on credit. Of the creditsales, 40 percent are collected in the month of sale and 60 percent are collected in the following month. All of Martin'spurchases are on account with 60 percent paid in the month of purchase and 40 percent paid the following month.Required:1. Determine budgeted cash collections for July and August.2. Determine budgeted cash payments for July and August.

Cash collection means the amount of money estimated to be collected by the entity from the sales of…

Answered: Martin Clothing Company is a retail…

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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C-Cubed had the following information from the end of last year for its Mountain Bikes: Budgeted Bike Sales for October Budgeted Bike Sales for November Budgeted Bike Sales for December Desired Ending Finished Goods Inventory Cash Collected from Sales in November Cash Available on November 1 Cash Disbursements in November Interest Received During November Loan Payments Made During November What was the required production for November? 115 bikes 100 bikes 120 bikes 5% of the following month's unit sales $40,000 $5.000 $25,000 $500 $8,000 Multiple Choice 101 bikes 106 bikes 100 bikes 103 bikes
Schedule of Cash Collections of Accounts Receivable Pet Stop Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows: May $160,000 June 170,000 July 250,000 All sales are on account. Of sales on account, 60% are expected to be collected in the month of the sale, 36% in the first month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for May, June, and July. PET STOP INC. Schedule of Collections from Sales For the Three Months Ending July 31 May June July May sales on account: Collected in May Collected in June Collected in July June sales on account: Collected in June Collected in July Sign out VO 11:12
C-Cubed had the following information from the end of last year for its Mountain Bikes: Budgeted Bike Sales for October Budgeted Bike Sales for November Budgeted Bike Sales for December Desired Ending Finished Goods Inventory 115 bikes 100 bikes 120 bikes 5% of the following month's unit sales $40,000 $5,000 $35,000 $500 Cash Collected from Sales in November Cash Available on November 1 Cash Disbursements in November Interest Paid During November How much would C-Cubed have to borrow to have a November ending cash balance of $25,000? Multiple Choice $15,500 $5,000 $5,500 $15,000
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9. The sales for Re-Works Inc., a company that fabricates iron fencing from recycled metals, are all on account. For the first three months of the year, Re-Works management expects the following sales: January February March Sales $120,000 $130,000 $140,000 Based on past collection patterns, management expects the following: Month of Sale Month after Sale Remainder - Second Month after Sale 10% 50% 40% Also, based on past experience, management forecasts that 5 percent of accounts receivable will be uncollectible and will eventually be written off. What are the expected cash receipts for March? 10. With the same sales forecasts as in question 9, Re-Works Inc. management would like to implement some changes to credit policy and credit terms that they believe would change the collection pattern going forward and would lower the uncollectible accounts prediction to 3 percent. What would be the expected cash receipts for March? Month of Sale Month after Sale Remainder Bad Debt Expense 15%…
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Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 31,800 89,500 112,500. 10,700 278,500 $ 523,000 Interest expense Income tax expense Total costs and expenses Net income. Earnings per share $ 129,900 98,500 163,500 131,100 $ 523,000 Current Year $ 411,225 209,550 1 Year Ago $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: 4 12,100 9,525 $ 75,250 101,500 163,500 104,750 $ 445,000 $ 673,500 2 Years Ago 642,400 $ 31,100 $ 1.90 $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $51,250 83,500 163,500 79,250 $ 377,500 1 Year Ago $ 345,500…
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Belvedere Bricks manufactures bricks for the construction industry. It estimates that in June, it will sell 70,000 bricks at a retail price of $6.40 per brick. All sales are cash sales. Each brick costs $4.40 to produce. In addition, Belvedere Bricks estimates it will pay in cash $19,000 of general and administrative expenses. The opening cash balance on 1 June is $48,000.Calculate the ending cash balance for Belvedere Brick's cash budget for the month of June. Group of answer choices $121,000 $73,000 $140,000 $169,000 None of the other options
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Cash collections for Wax On Candles found that 60% of sales were collected in the month of the sale, 30% was collected the month after the sale, and 10% was collected the second month after the sale. Given the following sales, how much cash will be collected in January and February? Nov. Dec. Jan. Feb. $25,000 $36,000 $19,000 $25,000 Jan. Feb. Cash collected %24 %24

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