Budgeted sales in Acer Corporation over the next four months are given below:September October$120,000 $140,000 $180,000 $160,000November DecemberBudgeted salesThirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of amonth's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second monthfollowing sale. Given these data, cash collections for December should be:Multiple Choice$161,400$141,800$118.700

Cash collection is the activity to receive payment from the customers to whom the sales have been…

Answered: ns for sales on account follow a stable…

Business

Accounting

ns for sales on account follow a stable p h following sale, and 20% are collectedi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What is the effective annual rate for an APR of 10.30 percent compounded quarterly?

A: Effective Annual Rate: It represents the real annual rate considering the compounding effects are…

Q: Compute the interest on a purchase of P30,000 at 8% for 10 and 15 months

A: The question is related to calculation of interest.

Q: A company has a collection period of 36 days and factors all receivables immediately at a discount…

A: Discount rate = 2.6%Number of days in a year = 365 daysCollection period = 36 days

Q: Complete the following without using Table 12.1. Principal $575, Time 1 year, Rate 4%, Compounded…

A: Calculation of period used: Answer: Number of periods compounded is 4. Given information: Principal…

Q: Use the present value table to complete: (Round the "PV factor" to 4 decimal places and final answer…

A: Given, Future amount = $11,000 Number of periods = 6 years*4 Number of periods = 24 Rate = 12%/4…

Q: Account A compounds monthly. Account B compounds quarterly. Both have an APR of 9%. All else…

A: In this question, we are required to determine which account has the higher EAR.

Q: If a 6-month T-Bill with a face value of $100 is purchased at a 8% annual discount, the buyer will…

A: Given information in question 6 month T bill Value at maturity = $100 Discount rate annual = 8%…

Q: Nominal rate is 5.28% with quarterly compounding. The effective annual rate (EAR) is closest to…

A: To calculate the effective annual rate we will use the below formula Effective annual rate =…

Q: The effective annual rate (EAR) for a savings account with a stated APR of 4% compounded daily is…

A: Effective Annual Interest Rate Effective annual interest rate refers to the actual rate of interest…

Q: tive rate? 4 % p.a compounded quarterly

A: Effective rate is the rate after considering the effect of the compounding.

Q: average monthly return?

A: Average Return: average return is the average expected return from an investment it is calculated…

Q: Find the APR for an investment with EAR of 7.93% and semiannual compounding

A: The APR is computed by using the formula of the EAR as follows: EAR = (1 + APRCompounding…

Q: (Annual percentage yield) Compute the cost of the following trade credit terms using the compounding…

A: APR (r)=Discount % / (100-Discount%) * 360/(Net days - Discount days)n= 360/(Net days - Discount…

Q: What is the fixed charge coverage ratio? Answer in the form of 3.2x (one decimal place) Assume: 1.…

A: The fixed-charge coverage ratio demonstrates how effectively a business can use its earnings to…

Q: annual interest rate? a. are: Issume its all 3 Paymore Products places orders for goods equal to 75%…

A: Let's break down each part of your question:a. To find the orders in each quarter, we need to…

Q: Find the markup rate based on selling price if the percent markup based on the cost is 14%.

A: Mark up means the gross profit margin earned on the basis of selling price or cost price. Markup on…

Q: consider account APR of 4.6% find APY and daily compounding. Comment on how changing the…

A: APR and APY are two important concepts with reference to the interest rate. APR shows number of…

Q: What principal will make a profit of $71.99 at 8 ½% in 200 days?

A: The question is related to the Simple Interest and Principal Simple Interest = P × R × T P =…

Q: Annual percentage yield) Compute the cost of the following trade credit terms using the compounding…

A: APR means the annual percentage rate, which represents both the interest rate on the loan as well as…

Q: A debt of $52000 with interest at 9.6% compounded quarterly is to be repaid by equal payments at the…

A: The present value of debt is equal to the sum of the present value of all future monthly…

Q: Find the percent markup based on selling price, if the percent markup based on the cost is 18%.

A: Solution... Markup on cost = 18% Markup on sales = ?

Q: A firm offers terms 3/15, net/60. Calculate the Annual Percentag Annual Percentage Rate (APY) is for…

A: APR stands for annual percentage rate, which is regarded as the nominal rate, and EAR stands for an…

Q: A rate is made up of claims, retention and profit. If 80% of a rate is claims, and retention…

A: Concept . In the given case , Rate comprises of claims , retention and profit. Rate = claims +…

Q: . J12 equivalent to ji = 10.08% i. equivalent to j4 = 12% . ja equivalent to j = 9% . per month…

A: in this we have to find equivalent rate of interest.

Q: At auction, 2-month T-bills were sold at a discount of 6.530%. What was the simple annual yield r?

A: Given, time t = 2 months i.e. 2/12 = 1/6 Discount = 6.53% Let the face value be $100 Discount =…

Q: A one-year discount factor Z(0, 1) is at 0.999 and a two-year discount factor Z(0, 2) is at 0.99.…

A: Compound interest is a financial concept that describes how the interest on an investment or loan is…

Question

Budgeted sales in Acer Corporation over the next four months are given below:
September October
$120,000 $140,000 $180,000 $160,000
November December
Budgeted sales
Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a
month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month
following sale. Given these data, cash collections for December should be:
Multiple Choice
$161,400
$141,800
$118.700

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

(Annual percentage yield) Compute the cost of the following trade credit terms using the compounding formula, or effective annual rate. Note: Assume a 30-day month and 360-day year. a. 2/5, net 60 b. 4/15, net 30 c. 3/10, net 75 d. 4/15, net 60. BETER a. When payment is made on the net due date, the APR of the credit terms of 2/5, net 60 is%. (Round to two decimal places.)
A money market dealer's bid and offer quotes are 6.75% - 6.56%. Calculate the trading profit (in $) from a round-trip transaction on $100,000 face value 180-day bills.
What is the regular selling price of an item purchased for $1270 if the markup is 20% of the regular selling price?
A company has a collection period of 33 days and factors all receivables immediately at a discount of 2.3 percent. What is the effective annual cost of borrowing? Assume 365 days per year. Multiple Choice 29.35% 27.01% 26.04% 28.60% 25.42%