Music World reports the following budgeted sales: August, $170,000; and September, $200,000. Cash sales are 40% of total sales, and all credit sales are collected in the month following the sale. Prepare a schedule of cash receipts from sales for September. MUSIC WORLD Schedule of Cash Receipts from Sales Sales Cash receipts from: Total cash receipts September $ 200,000

Music World reports the following budgeted sales: August, $170,000; and September, $200,000. Cash sales are 40% of total sales, and all credit sales are collected in the month following the sale. Prepare a schedule of cash receipts from sales for September. MUSIC WORLD Schedule of Cash Receipts from Sales Sales Cash receipts from: Total cash receipts September $ 200,000

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

The Guitar Shoppe reports the following budgeted sales: August, $130,000; and September, $210,000. For its total sales, 30% are immediately collected in cash, 55% are credit sales and collected in the month following sale, and the remaining 15% are written off as uncollectible. Prepare a schedule of cash receipts from sales for September. THE GUITAR SHOPPE Schedule of Cash Receipts from Sales September Sales $210,000 Cash receipts from: Total cash receipts $0
Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July August September $ 92,140 $ 107,685 $ 135,496 Cash sales are normally 35% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:
Kingston budgets total sales for June and July of $330,000 and $408,000, respectively. Cash sales are 65% of total sales. Of the credit sales, 15% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 20% 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. Sales month Total Sales June July Total S 330,000 408,000 Credit Sales As of July 31 Percent Uncollected Amount Uncollected
Preparing a financial budget—schedule of cash receipts sensitivity analysis Marcel Company projects the following sales for the first three months of the year: $11,200 in January; $512,300 in February; and $11,100 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January l. Round to the nearest dollar. Requirements . Prepare a schedule of cash receipts for Marcel for January, February and March. What is the balance in Accounts Receivable on March 31? Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31?
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $51,200. b. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales Sales on account $ 74,200 $ 79,600 $ 83,600 $ 455,000 $ 550,000 $ 673,000 Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. c. Purchases of inventory will total $346,000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $177,000, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $473,000…
The budgeted sales of Kelley, SA for the given months are as follows: Cash Sales Credit Sales April $38,000 $256,000 May $54,000 $250,000 June $36,000 $192,000 July $33,000 $190,000 August $35,000 $287,000 To prepare a cash budget, the company needs to determine the expected cash collections each month, and has provided the following additional information: The Accounts Receivable balance on April 1 was $82,015. Of this amount, $57,015 represented uncollected March sales and $25,000 represented uncollected February sales. Collections on Credit sales: 65% in month of sale 30% in month following sale 5% in second month following sale Part 1: What should the April cash collected be? $BLANK Part 2: For August 1, what is budgeted Accounts Receivable? (76,100, 100,300, 109,950, 144950, OR 79,700)
Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $81,000; May, $111,000; and June, $121,000. Payments are made as follows: 75% in the month of purchase and 25% in the month after purchase. The March 31 balance of accounts payable is $23,000. Prepare a schedule of budgeted cash payments for April, May, and June. April May June Current month purchases 75% Ending accounts payable 25% Total purchases Zisk Co. Schedule of Cash Payments For April, May, and June April May June Cash payments for: Current month purchases Prior month purchases Budgeted cash payments for materials
The Guitar Shoppe reports the following budgeted sales: August, $150,000, and September, $170,000. For its total sales, 40% are immediately collected in cash, 55% are credit sales and collected in the month following sale, and the remaining 5% are written off as uncollectible. Prepare a schedule of cash receipts from sales for September. THE GUITAR SHOPPE Schedule of Cash Receipts from Sales Sales Cash receipts from Total cash receipts September $ 170,000
The Guitar Shoppe reports the following budgeted sales: August, $140,000; and September, $250,000. For its total sales, 35% are immediately collected in cash, 50% are credit sales and collected in the month following sale, and the remaining 15% are written off as uncollectible. Prepare a schedule of cash receipts from sales for September. THE GUITAR SHOPPE Schedule of Cash Receipts from Sales Sales Cash receipts from: Total cash receipts September $ 250,000
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
Corporation has projected sales in units for the third quarter of the coming year as follows: July 60,000 August September 50,000 80,000 All units are sold on account for $18 each. Cash collections from sales are budgeted at 75% in the month of sale, and 25% in the month following the month of sale. June sales were $1,500,000 Required: 1. Prepare a schedule for the third quarter, showing budgeted cash receipts for Ehrlich Corporation. 2. What are budgeted accounts receivable?
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: