Pharoah Company's budgeted sales and direct materials purchases follow. January was the first month of operations. Budgeted sales: January $140,600; February $191,800; March $252,000 Budgeted direct materials purchases: January $40,100; February $35,300; March $40,100 Pharoah's sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month following the sale. Pharoah's purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase. Prepare a schedule of expected collections for January, February, and March.
Pharoah Company's budgeted sales and direct materials purchases follow. January was the first month of operations. Budgeted sales: January $140,600; February $191,800; March $252,000 Budgeted direct materials purchases: January $40,100; February $35,300; March $40,100 Pharoah's sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month following the sale. Pharoah's purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase. Prepare a schedule of expected collections for January, February, and March.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
i need the answer quickly
Transcribed Image Text:Pharoah Company's budgeted sales and direct materials purchases follow. January was the first month of operations.
Budgeted sales:
January $140,600; February $191,800; March $252,000
Budgeted direct materials purchases:
January $40,100; February $35,300; March $40,100
Pharoah's sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month following the sale.
Pharoah's purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the
month following purchase.
Prepare a schedule of expected collections for January, February, and March.
Collections:
Cash sales
Collections of credit sales:
January sales
February sales
March sales
Total collections
eTextbook and Media
Pharoah Company
Expected Collections
January
February
March
Prepare a schedule of expected payments for direct materials for January, February and March.
Payments:
Cash purchases
Payment of credit purchases:
January purchases
February purchases
March purchases
Total payments
eTextbook and Media
Pharoah Company
Expected Payments
January
February
March
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 6 images
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education