Moorcroft Company's budgeted sales and direct materials purchases are as follows:Budgeted Sales Budgeted D.M. Purchases$46,00058,00065,000April $293,000May 343,000June 386,000Moorcroft's sales are 40% cash and 60% credit. Credit sales are collected 20% in the month of sale, 50% in the month following sale, and 26% in the second month following sale; 4% are uncollectible. Moorcroft'spurchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month following the purchase and 60% in the second month following the purchase.(a)Prepare a schedule of expected collections from customers for June.Moorcroft CompanySchedule of Expected Collections from CustomersAprilMayJuneTotal CollectionsSalesSAprilSSMaySSJuneSS

Variables in the question: AprilMayJuneBudgeted Sales ($)293000343000386000Cash sale=40%Credit…

Answered: Moorcroft Company's budgeted sales and…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Guitar Shoppe reports the following budgeted sales: August, $120,000; and September. $240,000 For its totaj safes, 40% are immediately collected in cash, 45% are credit sales and collected in the month following sale, and the remaining 15% are wtitten off as uncollectible. Prepare a schedule of cash receipts from sales for September. THE GUITAR SHOPPE Schedule of Cash Receipts from Sales September 240,000 Sales Cash receipts from: Cash sales Collections of prior period sales Total cash receipts
The BRS Corporation makes collections on sales according to the following schedule: 45% in month of sale 50% in month following sale 5% in second month following sale The following sales have been budgeted: Sales April May $140,000 $150,000 $140,000 June Budgeted cash collections in June would be:
Kingston budgets total sales for June and July of $430,000 and $338,000, respectively. Cash sales are 65% of total sales. Of the credit sales, 25% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 10% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company’s budgeted balance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31. As of July 31 Sales month Total Sales Credit Sales Percent Uncollected Amount Uncollected June $430,000 July 338,000 Total
The BRS Corporation makes collections on sales according to the following schedule: 45% in month of sale 53% in month following sale 2% in second month following sale The following sales have been budgeted: Sales April $220, 000 $150,000 May June $140, 000 Budgeted cash collections in June would be: Multiple Cholce $140,000 $142,500 $146,900 $140,440
The BRS Corporation makes collections on sales according to the following schedule: 40% in month of sale 55% in month following sale 5% in second month following sale The following sales have been budgeted: April May June Sales $110,000 $120,000 $110,000 Budgeted cash collections in June would be: Multiple Choice $115,500 $110,000 $110,550 $112,000
Seventy percent of Pitkin Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company January February March April $250,000 Budgeted sales $200,000 $300,000 $350,000 Total budgeted cash collections in April would be: Multiple Cholce $175,000 $275.000 $70,000 $30,000 1:07 PM here to search 73°F Mostly sunny F 10 10/20/2021 DELL PrtScr Insert Delete PgDn ...
Assume the following budgeted information for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $248,000, $218,000, and $209,000, respectively. • Cash collections related to credit sales are expected to be 70% in the month of sale, 30% in the month following the sale. • The cost of goods sold is 70% of sales. • Each month's ending inventory equals 20% of next month's cost of goods sold. • 30% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month. • Monthly selling and administrative expenses that are paid in cash in the month incurred total $25,000. • Monthly depreciation expense is $9.000. . The budgeted net operating income for December would be: Multiple Choice $40,400 $25,734 $16,734 $31,400
Farm Supply Company's budgeted monthly sales are as follows: April $780,000, May $560,000, and June $900,000. Sales are 60% cash and 40% on account. Farm Supply collects all its accounts receivable in the month following the sale. Cost of goods sold is budgeted at 75% of sales and ending inventory is budgeted at 20% of the next month's cost of goods sold. All inventory purchases are paid 28% in the month of purchase and 72% in the following month. What are Farm Supply's budgeted cash collections for the month of May? O $336,000 O $414,000 O $648,000 O $747,000 O None of the above
Meredith Company has budgeted sales for the upcoming months as follows: $ 452,000 $ 467,000 $ 498,000 $ 516,000 $ 503,000 $ April Мay June July August September $ 478,000 40% of the sales are credit sales, the remainder are made in cash. Credit sales are collected 50% in the month of sale, 35% in the month following the sale, and 8% in the second month following the sale. a. Compute Meredith Company's cash receipts for June. (Do not round intermediate calculations.) Cash Receipts b. Compute Meredith Company's cash receipts for July. (Do not round intermediate calculations.) Cash Receipts c. Compute Meredith Company's cash receipts for August. (Do not round intermediate calculations.) Cash Receipts
Ivanhoe Company, a retailer of camping supplies has budgeted activity for January using the following data: January cash sales January credit sales Collections from December credit sales Selling and administrative costs (paid in month of purchase) Depreciation expense Merchandise Inventory, January 1 Merchandise Inventory, January 31 Cost of goods sold is 30% of Cooper's selling price All purchases are paid in cash Credit sales are collected 60% in the month of sale, 30% in the following month, and 10% is deemed uncollectible What is Ivanhoe's budgeted cash disbursements for January? Total January disbursements $ $59,000 386,000 155,000 59,000 22,000 199,000 211,000
Wells Company reports the following budgeted sales: September, $53,000; October, $72,000; and November, $87,000. All sales are on credit, and 5% of those credit sales are budgeted as uncollectible. Collection of the remaining 95% of credit sales are budgeted as follows: 60% in the first month after sale and 35% in the second month after sale. Prepare a schedule of cash receipts from sales for November.
Al Manufacturing is preparing its master budget. Budgeted sales and cash payments follow. July $63,400 Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead 12,480 10,400 18,720 August $80,600 9,900 8,250 14,850 September $48,600 10,140 8,450 15,210 Sales to customers are 20% cash and 80% on credit. Sales in June were $58,750. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $12,900 in cash and $2,600 in loans payable. A minimum cash balance of $12,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,600. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $12,600 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,600 per month), and rent ($7,100 per month). 1.…

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