Mesh Merchandising Company expects to purchase $86,000 of materials in July and$118,000 of materials in August. Three-quarters of all purchases are paid for in the month ofpurchase, and the other one-fourth are paid for in the month following the month ofpurchase. How much will August's cash disbursements for materials purchases be?A) $118,000B) $64,500C) $88,500D) $110,000

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Answered: Mesh Merchandising Company expects to…

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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Brooklyn Studio's sales are all made on account. The firm's collection experience has been that 27% of a month's sales are collected in the month the sale is made, 52% are collected in the month following the sale, and 19% are collected in the second month following the sale. The sales forecast for the months of September through December is as follows: September October November December $ 238,000 293,000 307,000 360,000 Required: Calculate the cash collections that would be included in the cash budgets for November and December. November December Cash Collections
Kronos Ltd is preparing a cash budget for May and June of 2021. Past records reveal that 15% of all credit sales are collected during the month of sale, 45% in the month following the sale, 30% in the second month following the sale and 10% in the third month following the sale. The company pays for 55% of purchases in the month after purchase, and the balance is paid in the month following that. Selling expenses amount to $2 400 per month plus 10% of monthly sales. Administrative expenses are estimated to be $9 800 per month, which includes $2 600 of depreciation expense. Finance expenses are $1600 per month. All selling and distribution, administrative, and finance and other expenses (except depreciation) are paid for when incurred. It is planned to purchase equipment during May 2019 at a cost of $7 500. A $5 800 loan payable will be repaid in full including interest charges during June 2019. The interest due at maturity date will be $750. The company’s expected…
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Jasper Company has 65% of its sales on credit and 35% for cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $527,000 for April, $537,000 for May, and $562,000 for June. Total sales for March are $300,100. Prepare a schedule of cash receipts from sales for April, May, and June.
Omega DB Company has a sales budget for next month of P150,000. Cost of goods sold is expected to be 40 percent of sales. All goods are purchased in the month used and paid for in the month following purchase. The beginning inventory of merchandise is P5,000, and an ending inventory of P6,000 is desired. Beginning accounts payable is P38,000.For Omega DB Company, the ending accounts payable should be
Shadee Corporation expects to sell 590 sun shades in May and 360 in June. Each shades sells for $15. Shadee's beginning and ending finished goods inventories for May are 60 and 45 shades, respectively. Ending finished goods inventory for June will be 55 shades. It expects the following unit sales for the third quarter: July August September 545 500 470 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 38 percent is collected during the following month, and 10 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. August September Total Cash Receipts
Prince Charles Island Company has expected sales of $6,000 in September, $10,000 in October, $16,000 in November, and $12,000 in December. Cash sales are 20 percent and credit sales are 80 percent of total sales. Historically, 40 percent of receivables are collected in the month after the sale, and the remaining 60 percent collected two months after. Assume that the company's cash payments for November are $13,000, and December $6,000. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. Sales Credit sales Cash sales Collections in the month after credit sales Collections two months after credit sales Total cash receipts Prince Charles Island Company Cash Receipts Schedule September S Cash receipts Cash payments Net cash flow Prince Charles Island Company Cash Budget November Beginning cash balance Cumulative cash balance. Monthly loan or (repayment). Cumulative loan balance. Ending cash…
Company A is a wholesale distributor of masks. Company is preparing the budget for April. Sales are budgeted at € 60,000 for April. 30% of these sales will be for cash, reminder will be credit sales. 50% of a month's sales on credit are collected in the month the sales are made, the remainder is collected in the following month. All of the March 31 accounts receivable will be collected in April. Purchases of inventory are expected to total € 40,000 during April. These purchases will all be on account. 40% of all purchases are paid for in the month of purchase, the remainder are paid for in the following month. All of the March 31 accounts payable to suppliers will be paid during April. The balance sheet of March 31 is provided in the table. Assets: Cash 3000 Accounts receivable Inventory Balance value of equipment Total assets Liabilities and Equity: Accounts payable Other amounts payable Share capital Retained earnings Total liabilities and equity 18000 10000 69000 100000 21000 5000…

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