Polly Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data. What would be the budgeted total cash receipts in April? February January $60,000 Total Sales a. $42,760 b. $38,900 c. $47,900 d. $27,230 $75,000 March $52,000 April $38,000

Polly Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data. What would be the budgeted total cash receipts in April? February January $60,000 Total Sales a. $42,760 b. $38,900 c. $47,900 d. $27,230 $75,000 March $52,000 April $38,000

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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Fenway Company has budgeted the following amounts for sales in 2002: Month SalesApril $98,000May 67,000June 108,000July 82,000 An analysis of past patterns of receipts shows that 60% of the sales dollars are received in the month of the sale and 40% are received in the following month. Assuming this pattern continues, the amount of cash to be received in May and June isA. $85,600 and $83,400, respectively.B. $97,600 and $97,600, respectively.C. $91,600 and $81,600, respectively.D. $79,400 and $91,600, respectively. CAPITAL BUDGETING1. Using an interest rate of 8%, what is the present value of $50,000 to be received 4 yearsfrom today?A. $36,750.00B. $27,015.00C. $68,027.21D. $19,963.50 2. What is the present value of $650,000 that will be received in 10 years, if the discountrate is 12% ?A. $367,263B. $209,300C. $250,575D. $166,855
Kennedy Enterprises has budgeted sales for the months of September and October at $170,000and $14 are 60% credit and 40% cash. Of the credit sales, 30% are collected in the month of sale and 70% are col What are the October cash collections from customers? $81,200 O $96,600 O $145,400 O $152,600
A company's budgeted sales and cash collections for Quarter 1 are listed below: January February March Cash Sales $93,000 $100,000 $85,000 Collections on credit sales are as follows: Month of sale A month after sale Second month after sale $1,278,000 $335,000 $428,000 $126,500 Credit Sales Answer. (Click to select) www.m (Click to select) None of the answers are correct. ? $260,000 $195,000 v Total Sales The accounts receivable balance on January 1 is $175,000, of which $75,000 represents uncollected December sales and $100,000 represents uncollected November sales astur um al Q. If the total cash collected in March was $320,000, then total January sales must have been: $360,000 $280,000 50% 40% 10%
Browning Company's sales budget shows the following expected total sales: Month Sales $23,000 $27,000 $32,000 $43,000 January February March April The company expects 70% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale, 69% in the month following the sale with the remainder being uncollectible and written off. The total cash inflows from sales in April would be: Multiple Choice $22,575 $25,005. $35,881 $23,200
Center Company makes collections on sales according to the following schedule: 30% in the month of sale 60% in the month following sale 8% in the second month following sale The following sales are expected: Expected Sales January $ 108,000 February $ 144,000 March $ 127,000 Cash collections in March should be budgeted to be:
19. SalaRita's sales are 32% cash and 68% credit. Of the credit sales, 40% of credit sales are collected in the month of sale, 45% in the month following the sale, and 15% is collected two months after. Budgeted sales data is as follows: June July August $200,000 120,000 150,000 How much is total cash collected during August? A) $145,920 B) $105,120 C) $88,800 D) $144,000
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Elordi Engineers Corp. has the following budgeted sales data (in dollars): June July August September Credit Sales 290,000 300,000 260,000 310,000 Cash Sales 70,000 70,000 70,000 70,000 The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following sale, and the remainder in the second month following the month of sale. There are no bad debts. What would the budgeted cash receipts during September be? Round your answer to the nearest whole number.
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