Prepare cash budget for July and August month with opening cash for July is 4,200 & utility bills of 1,800 each month. Forecast sales= May 13,000, June 16,500, July 17,000, August 11,000. Cash sales are 30% of total sales. Credit sales are collected 60% one month after the sales and 40% 2 months after the sales made. Accounts payable are paid 100% 2 months after the purchases. Expected Accounts payables-May 4,500, June 5,500, July 6,500, August7,500.

Prepare cash budget for July and August month with opening cash for July is 4,200 & utility bills of 1,800 each month. Forecast sales= May 13,000, June 16,500, July 17,000, August 11,000. Cash sales are 30% of total sales. Credit sales are collected 60% one month after the sales and 40% 2 months after the sales made. Accounts payable are paid 100% 2 months after the purchases. Expected Accounts payables-May 4,500, June 5,500, July 6,500, August7,500.

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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Anderson Manufacturing Inc., aims to prepare a cash budget for September 2020. The cash balance at the beginning of September is $9,000. The actual sales for July and August and expected sales for September are: Information Cah Sales Sales on Accoun 0000 60,00 Tetal Sales July (5 Augut (5) Septemberis 14,300 Sales on account are collected over a three-month period in the following ratio: 10% in the month of sale, 70% in the month following sale 18% in the second month following sale 2% remaining are uncollectible. Additional information includes: (a) Purchases of inventory will total S 50,000 for September; 20% will be paid for in September. Accounts payable from August's inventory purchases is $ 32,000, all of which will be paid in September. (b) Selling and administrative expenses are budgeted at $ 26,000 for September; of which $ 8,000 is for depreciation. (c) Equipment costing $ 36,000 will be purchased for cash during September, and other miscellancous cash expenses of $ 6,000…
Gardner Company expects sales for October of $259,000. Experience suggests that 55% of sales are for cash and 45% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $73,500. What is the amount of cash expected to be collected in October? Multiple Choice $215,950. $274,225. $142,450. $200,725. $129,500.
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customer while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remainim 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October November December $109,000 136,000 199,000 The Accounts Receivable balance on September 30 was $73,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dolla OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 November Receipts from cash sales: Cash sales September sales on account: Collected in October October sales on account: Collected in October Collected in November November sales on account: October…
Treasure Service anticipates the following sales revenue over a five-month period: Its collection history indicates that credit sales are collected as follows: E (Click the icon to view the sales data.) A (Click the icon to view the collections data.) The company's sales are 20% cash and 80% credit. How much cash will be collected in Janua More Info 25% in the month of the sale 50% in the month after the sale Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole do 20% two months after the sale Treasure Service 5% are never collected Cash Collections Budget For the Months of January through March January Data Table Print Done Cash sales Collection of credit sales: 25% Month of sale November December January February March 50% Month after Sales revenue....... 16,100 $ 10,000 $ 15,200 $ 12,000 $ 14,200 20% Two months after Total cash collections Print Done
Given the following, complete the table Cash Receipts increase by 4% every month. A Cash Disbursements is 60% of the total monthly cash receipts and The minimum cash balance per month is P 60,000. Cash Budget Jan Feb Mar Apr May Jun Cash Receipts P 77,000.00 Less: Cash Disbursements Net Cash Flow P 34,800.00 Add: Beginning Cash Ending Cash Less: Minimum Cash Balance Required Total Financing / Excess Cash Balance
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Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $45,000 and $65,000, respectively. The company expects to collect 30% of its credit sales in the month of the sale and the remaining 70% in the following month. What is the expected cash collections from credit sales during the first month? Multiple Choice $13,500 $31,500 $25,500 $49,000
A company makes collections on sales according to the following schedule: 50% in month of sale 45% in month following sale 5% in second month following sale The following sales have been budgeted: April May June Sales $180,000 $190,000 $180,000 Budgeted cash collections in June would be:
A sendai clothing wholesaler was preparing its sales budget for the first quarter of 2020. Forecast sales are as follows: January $ 203,000 February $ 227,000 March $ 248,000 Sales are 40% cash and 60% on credit. 55% of the credit accounts are collected in the month of sales, 35% in the month following the sale, and 10% in the following month. Accounts receivable at the beginning of 2020 are $ 82,950 (10% of November credit sales of $ 150,000 and 45% of December credit sales of $ 151,000). Prepare a sales budget and cash collections for January, February, and March, 2020