Martinez Company has budgeted sales revenue as follows for the next 4 months: February March April May $310,000 245,000 230,000 330,000 Past experience indicates that 70% of sales each month are on credit. The remainder are cash sales. Collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale, and 3% in the second month following the sale. The other 2% is uncollectible. Prepare a schedule which shows expected cash receipts from sales for the month of May.

Martinez Company has budgeted sales revenue as follows for the next 4 months: February March April May $310,000 245,000 230,000 330,000 Past experience indicates that 70% of sales each month are on credit. The remainder are cash sales. Collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale, and 3% in the second month following the sale. The other 2% is uncollectible. Prepare a schedule which shows expected cash receipts from sales for the month of May.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Apollo Corporation produces and sells a single product, sewing machines, for $100 per unit. Budgeted sales for the next three months are given below: Unit Sales June 76,000 July 80,000 August 85,000 All sales are on credit and are collected in the following pattern: 30% in the month of sales and the remaining 70% in the month following the sale. 1. What is the amount of sales revenue reported on the company’s budgeted income statement for July? multiple choice 1 a)$8,000,000 b)$7,600,000 c)$8,500,000 d)$7,720,000 2. Past experience has shown that end-of-month inventory levels must equal 20% of the following month’s unit sales. How many units are required to be produced in July? multiple choice 2 a)82,400 units b)81,000 units c)86,400 units d)80,000 units 3. In July, how much cash the company can collect from sales? multiple choice 3 a)$7,600,000 b)$8,000,000 c)$8,680,000 d)$7,720,000 4. In the company’s balance sheet dated…
Kennedy Enterprises has budgeted sales for the months of September and October at $170,000and $14 are 60% credit and 40% cash. Of the credit sales, 30% are collected in the month of sale and 70% are col What are the October cash collections from customers? $81,200 O $96,600 O $145,400 O $152,600
Ross Corporation makes all sales on account. The June 30th balance sheet balance in its accounts receivable is $400,000, of which $240,000 pertain to sales that were made during June. Budgeted sales for July are $1,250,000. Ross collects 70% of sales in the month of sale; 20% in the following month; and the final 10% in the second month after the sale. What is the budgeted balance of Ross's accounts receivable as of July 31?
Cloudy Company had the following historical collection pattern for its credit sales: 70% collected in the month of sale 12% collected in the first month after month of sale 10% collected in the second month after month of sale 5% collected in the third month after month of sale 3% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below: July August September October November December The estimated cash collection by Cloudy Company during September from credit sales in July, August, and September is: Multiple Choice $83,840. $100,160. $90,880. $ 92,000 $ 104,000 $ 116,000 $ 128,000 $ 140,000 $ 122,000 $64,400.
Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows: OctoberNovemberDecemberCash sales$ 60,000$ 55,000$ 75,000Credit sales60,00066,00082,500Total$ 120,000$ 121,000$ 157,500 Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in the month following the month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount. Inventory purchases each month are 100% of the cost of the following month’s projected sales. (The gross profit rate for Timpco is approximately 30%.) All merchandise purchases are made on credit, with 20% paid in the month of purchase and the remainder paid in the following month. No cash discounts for early payment are…
19. SalaRita's sales are 32% cash and 68% credit. Of the credit sales, 40% of credit sales are collected in the month of sale, 45% in the month following the sale, and 15% is collected two months after. Budgeted sales data is as follows: June July August $200,000 120,000 150,000 How much is total cash collected during August? A) $145,920 B) $105,120 C) $88,800 D) $144,000
Elordi Engineers Corp. has the following budgeted sales data (in dollars): June July August September Credit Sales 290,000 300,000 260,000 310,000 Cash Sales 70,000 70,000 70,000 70,000 The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following sale, and the remainder in the second month following the month of sale. There are no bad debts. What would the budgeted cash receipts during September be? Round your answer to the nearest whole number.
Dog
Markham Company has completed its sales budget for the first quarter of Year 2. Projected credit sales for the first four months of the year are shown below: January February March April $ 20,000 $ 26,000 $ 35,000 $ 38,000 The company's past records show collection of credit sales as follows: 40% in the month of sale and the balance in the following month. The total cash collection from receivables in March is expected to be: Multiple Choice $29,600. $22,100. $31,850. $35,000.
Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows: October November December Cash sales $ 80,000 $ 71,000 $ 83,000 Credit sales 80,000 85,200 91,300 Total $ 160,000 $ 156,200 $ 174,300 Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in the month following the month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount. Inventory purchases each month are 100% of the cost of the following month’s projected sales. (The gross profit rate for Timpco is approximately 30%.) All merchandise purchases are made on credit, with 20% paid in the month of purchase and the remainder paid in the following month. No cash discounts…
OBUTJX493 Corporation's operational data are below: Sales are budgeted at $ 260,000 for November, $327,000 for December, and $210,000 for January. All sales are credit sales Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible. The cost of goods sold is 65% of sales. The OBUTJX493 company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. December cash disbursements for OBUTJX493's merchandise purchases would be:
Hunt Company's sales, based on past experience, are 30% cash and 70% credit. Credit sales are typically collected as follows: 40% in the month of sale, 50% in the month after the sale, and 10% in the second month following month of sale. On December 31, the accounts receivable balance is $69,000, of which $24,000 is from November sales. Total sales for January and February are budgeted to be $110,000 and $130,000, respectively. What are Hunt Company's budgeted cash receipts for January? Multiple Choice $79,500. $92,500. $95,800. $112,500. $125,300.