Place, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: March April May June July Budgeted sales $299000 $289000 $319000 $279000 $209000 Budgeted purchases $143000 $119000 $127000 $131000 $89000 • Customer amounts on account are collected 60% in the month of sale and 40% in the following month. • Cost of goods sold is 70% of sales. • Crane purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month. • Operating expenses are: Salaries, $49000; Depreciation, $11000; Rent, $14000; and Utilities, $13000. • Accounts payable is used only for inventory acquisitions. How much cash will Place receive during May from customers?
Place, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: March April May June July Budgeted sales $299000 $289000 $319000 $279000 $209000 Budgeted purchases $143000 $119000 $127000 $131000 $89000 • Customer amounts on account are collected 60% in the month of sale and 40% in the following month. • Cost of goods sold is 70% of sales. • Crane purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month. • Operating expenses are: Salaries, $49000; Depreciation, $11000; Rent, $14000; and Utilities, $13000. • Accounts payable is used only for inventory acquisitions. How much cash will Place receive during May from customers?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help me with show all calculation thanku
Transcribed Image Text:Place, Inc. reports all its sales on credit,
and pays operating costs in the month
incurred. Amounts for 2022 are:
March April May June July
Budgeted sales $299000 $289000
$319000 $279000 $209000
Budgeted purchases $143000
$119000 $127000 $131000 $89000
• Customer amounts on account are
collected 60% in the month of sale and
40% in the following month.
• Cost of goods sold is 70% of sales.
• Crane purchases and pays for
merchandise 30% in the month of
acquisition and 70% in the following
month.
• Operating expenses are: Salaries,
$49000; Depreciation, $11000; Rent,
$14000; and Utilities, $13000.
• Accounts payable is used only for
inventory acquisitions. How much cash
will Place receive during May from
customers?
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 3 steps
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