Nieto Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases $200,000 $30,000 220,000 36,000 250,000 January February March 38,000 Nieto's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March. NIETO COMPANY Expected Collections from Customers Total collections March

Nieto Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases $200,000 $30,000 220,000 36,000 250,000 January February March 38,000 Nieto's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March. NIETO COMPANY Expected Collections from Customers Total collections March

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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Subject: acc
Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: January February March 70,300 299,850 ? 81,500 156,100 160,300 Budgeted production (in units) Budgeted raw materials purchases (in pounds) Five pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 20% of the following month's production needs. The company is expected to have 70,300 pounds of raw materials on hand on January 1. Budgeted production for February should be: Multiple Choice O O 82,100 units 74,400 units 18,650 units 81,500 units
TCB Inc. prepared the following sales budget: October November December January February Month Cash Sales Credit Sales $225,000 $180,000 $330,000 $210,000 $135,000 $190,000 $142,000 $210,000 $168,000 $265,000 Collections on credit sales are 50% in the month of sale, 40% in the month following the sale, and 10% in the second month following the sale. Calculate the budgeted total cash receipts for the December cash budget. $325,000 $197,000 $332,000 $135,000
Hagen Company’s budgeted sales and direct materials purchase are as follows. Budgeted Sales Budgeted D.M. Purchases January $300000 $60000 February 330000 70000 March 350000 80000 Hagen’s sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Hagen’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchases, and 60% in the month following purchases. Prepare a schedule of expected payments for direct materials for March.
Zisk Company purchases direct materials on credit. Budgeted purchases are April, $89,000; May, $119,000; and June, $129,000. Cash payments for purchases are: 70% in the month of purchase and 30% in the first month after purchase. Purchases for March are $79,000. Prepare a schedule of cash payments for direct materials for April, May, and June.
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Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: January February March Budgeted production (in units) Budgeted raw materials purchases (in pounds) 71,600 88,000 201,633 175,600 166,800 Three pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 21% of the fol production needs. The company is expected to have 45,108 pounds of raw materials on hand on January 1. Budgeted production for February should be: Multiple Choice 119,960 units 88,600 units 88,000 units 50,700 units
Seventy percent of Parlee Corporation's sales are collected in the month of sale, 25% in the month following sale, and 5% in the second month following sale. The following are budgeted sales data for the company: January February March April Total sales...... $600,000 $700,000 $500,000 $300,000 Total budgeted cash collections in April would be:
Seventy percent of Porter's 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: Budgeted sales O $175,000 O $275,000 O $70,000 January $200,000 Total budgeted cash collections in April would be: O $30,000 February $300,000 March $350,000 April $250,000
The Gingham Company's budgeted income statement reflects the following amounts: Sales Purchases $ 120,000 $ 78,000 110,000 66,000 125,000 81,250 84,500 January February March April 130,000 Sales are collected 50% in the month of sale, 30% the month following sale, and 19% in the second month following. sale. 1 percent of sales is uncollectible and expensed at the end of the year. Cash Gingham pays for all purchases in the month following purchase and takes advantage of a 3% discount. The following balances are as of January 1: Expenses $ 24,000 24,200 27,000 28,600 Accounts receivable * Accounts payable $ 88,000 58,000 72,000 *Of this balance, $35,000 will be collected in January and the remaining amount will be collected in February. The monthly expense figures include $5,000 of depreciation. The expenses are paid in the month incurred. 1) Gingham's expected cash balance at the end of January is: 2) Gingham's budgeted cash receipts in February are:
Shaw Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): January February March April S O $544,500 O $907,500 O $605,000 O $363,000 Credit sales are collected: 40% in the month of the sale 60% in the following month The budgeted accounts receivable balance at the end of February is closest to: 121 7,000 7,500 11,900 14,900
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow. July August September Budgeted sales $ 55,000 $ 71,000 $ 57,000 Budgeted cash payments for Direct materials 15,360 12,640 12,960 Direct labor 3,240 2,560 2,640 Factory overhead 19,400 16,000 16,400 Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $44,200 in accounts receivable; and a $4,200 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are…