Perez Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Perez has budgetedsales as indicated in the following table. The company expects a 12 percent increase in sales per month for February and March. Theratio of cash sales to sales on account will remain stable from January through March.Requireda. Complete the sales budget by filling in the missing amounts.b. Determine the amount of sales revenue Perez will report on its first quarter pro forma income statement.Complete this question by entering your answers in the tabs below.Required ARequired BComplete the sales budget by filling in the missing amounts. (Round intermediate calculations and final answers to 2 decimalplaces.)SalesJanuaryFebruaryMarch$ 46,000116,000Cash salesSales on accountTotal budgeted sales$ 162,000< Required ARequired B >

Given: Cash Sales for January $46000 Credit sales for January $116000 12% in sales per month for…

Answered: Perez Company, which expects to start…

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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Given the following information, complete the cash budget: Collections occur one month after the sale. January’s credit sales were $90,000. The firm has a certificate of deposit for $50,000 that matures in April. Salaries are $150,000 a month. The monthly mortgage payment is $20,000. Monthly depreciation is $10,000. Property tax of $35,000 is due in February. Round your answers to the nearest dollar. Enter the disbursements values as positive values. Use a minus sign to enter shortage of cash, negative beginning and ending cash values, if any. Do not leave any cells blank. If the answer is zero, enter "0". February March April Sales $ 170,000 $ 200,000 $ 230,000 Cash sales $ 35,000 $ 20,000 $ 70,000 Collections $ $ $ Other receipts $ $ $ Total cash receipts $ $ $ Salaries $ $ $ Mortgage $ $ $ Other disbursements $ $ $ Total cash disbursements $ $ $ Net…
A company is preparing its cash budget for the upcoming quarter. The company's sales are expected to be $500,000 in January, $600,000 in February, and $700,000 in March. The company's cost of goods sold is 60% of sales. The company's beginning cash balance is $50,000, and the company desires to maintain a minimum cash balance of $25,000. What is the company's budgeted cost of goods sold for February? $360,000 $540,000 $450,000 $350,000
Prepare a budgeted income statement for July. Please present your solution in a good form and income statement in good form.
I Rooney Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Rooney has budgeted sales as indicated in the following table. The company expects a 15 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March Required a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue Rooney will report on its first quarter pro forma income statement. Complete this question by entering your answers in the tabs below. Required Required B Complete the sales budget by filling in the missing amounts. (Do not round intermediate calculations. Round final answers to two decimal places.) March Sales Cash sales Sales on account Total budgeted sales January February $45,000 115,000 160,000
Nestee controller for Mactan Relaters has assembled the following data to assist in the preparation of a cash budget for the third quarter of 2021: Sales- May $100,000 ;June $120,000; July $90,000 ; August $100,000 September $135,000; October $110,000 Each month, 30% of sales are for cash and 70% ore on credit. The collection pattern for credit sales is 20% in the month of sale, 50% in the following month, and 30% in the second month following the sale. Each month the ending inventory exactly equals 50% of the cost of next month's sales. The markup on goods is 25% of cost. Inventory purchases are paid in the month following the purchase. Monthly expenses are as follows: Salaries and wages $10,000; Depreciation $4,000; Utlites $1,000; Other $1,700. Property taxes of $15,000 are due and payable on July 15,2021. Advertising fees of $6,000 must be paid on August 20,2021. A lease on a new storage facility is scheduled to begin on September 2, 2021.Monthly payments are $5,000. The…
Please answer the question What are the estimated cash receipts for March, if 20 percent of sales are cash, 40 percent are credit sales paid in the month after the sale, and 40 percent are credit sales paid 2 months after the sale? Answer it with complete solutions and explanations if needed. Thank you
Capstone, Inc. is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. Capstone, Inc. gathered the following information from the managers. Sales Unit sales for November 2019 112500 Unit sales for December 2019 104,000 Expected unit sales for January 2020 116,000 Expected unit sales for February 2020 115,500 Expected unit sales for March 2020 117,000 Expected unit sales for April 2020 135,000 Expected unit sales for May 2020 145,000 Unit selling price $13.00 Capstone, Inc. likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019,…
Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: Sales Budget Cash Sales April 130,000 470,000 Sales on Account 600,000 Multiple Choice Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale. What is the ending accounts receivable balance that would be reported on the pro forma balance sheet prepared as of June 30? O O O $202,700 $149,500 $344.000 May 83,000 512,000 595,000 $106,400 June 155,000 505,000 660,000
B. Mahmoud Repair Company is preparing its budget for the first quarter of 2021. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Clients usually pay 60% of their fee in the month that service is provided, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2016 and expected service revenues for 2021 are: November 2020, $120,000; December 2020, $110,000; January 2021, $140,000; February 2021, $160,000; March 2021, $170,000. Purchases on landscaping supplies (direct materials) are paid 40% in the month of purchase and 60% the following month. Actual purchases for 2020 and expected purchases for 2021 are: December 2020, $21,000; January 2021, $20,000; February 2021, $22,000; March 2021, $27,000. Instructions (a) Prepare the following schedules for each month in the first quarter of 2021 and for the quarter in total: (1)…
Develop a cash budget for the next three months using the information provided below. Monthly sales forecasts are $150,000, $180,000, and $60,000 (June, July, August) The current month's sales are $120,000 (May) Cost of goods sold equals 65% of sales Lease payment= 22,000 per month The company is required to pay an installment of $120,000 for a note (debt) The cash position at the end of the current month is $80,000 The target cash balance is $50,000 Assume that 60% of sales are collected in the month sold and the remaining collected in the following month.
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2019 111,000 Unit sales for December 2019 101,000 Expected unit sales for January 2020 113,000 Expected unit sales for February 2020 113,000 Expected unit sales for March 2020 118,000 Expected unit sales for April 2020 124,000 Expected unit sales for May 2020 137,000 Unit selling price $12 Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $181,800.Direct MaterialsDirect materials cost 80 cents per pound. Two pounds of direct materials…
Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. Required a. October sales are estimated to be $340,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget. b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts. c. The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $12,900. Assume that all purchases are made…

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