Preparing a Schedule of Cash Collections on Accounts ReceivableKailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kaillua expects that, on average, 20% will be paid in the month of billing, 509will be paid in the month following billing, and 25% will be paid in the second month following billing. For the next 5 months, the following sales bilings are expected:May$84,000June100,800July77,000August86,800September91,000Required:Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September. If an amount box does not require an entry, leave it blank or enter "0". Be sure toenter percentages as whole numbers.Kailua and Company ScheduleAugustSeptemberJune:25,200July:38,50019,250August43,05017,220September17,80080,92080,100Total cash receipts,0.00.00M

Accounts receivables:- Accounts receivables are defined as those receivables which include the money…

Answered: Preparing a Schedule of Cash…

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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Eastern Auto Parts Inc. has 20 percent of its sales paid for in cash and 80 percent on credit. All credit accounts are collected in the following month. Assume the following sales: January February March April $ 82,000 72,000 117,000 62,000 Sales in December of the prior year were $92,000. Prepare a cash receipts schedule for January through April. Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts Eastern Auto Parts Inc. February January $ 80,000 $ March 81,000 $ April 106,000
5 At Lyman Company, past experience reveals that 10% of sales are for cash and the remaining 90% are on credit. Lyman Company expects to collect 30% of its credit sales in the month of sale, 50% in the month following sale, and 18% in the second month following sale. Which ONE of the following is part of the cash collections expected to be made in January? O Cash sales from the preceding December O Cash collections of credit sales from the preceding December O Cash collections of credit sales from the preceding September O Cash sales from the preceding November
A company is preparing its cash buget for the month of May. Below is A/R information: Actual credit sale for March $130,000 Actual credit sale for April $160,000 Estimated credit sales for May $210,000 Estimated collections in the month of sale 25% Estimated collections in the first month after the month of sale 60% Estimated collections in the second month after the month of sale 10% Estimated provision of bad debts (made in month of sale) 5% ** Firm writes off all UNCOLLECTIBLE account receievables at the end of second month after the month of sale. Required: For the month of May, calculate the following: 1. Estimated cash receipts from account recievable collections. 2. The gross amount of A/R at the end of the month (after appropriate write off of uncollectiable amounts). 3. The net amount of A/R at the end of the month 4. Recalculate the requirement 1 & 2 under the assumption that estimated collections in the month of sale equal 60% and in the first…
Munoz Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Munoz expects sales in January year 1 to total $270,000 and to increase 15 percent per month in February and March. All sales are on account. Munoz expects to collect 69 percent of accounts receivable in the month of sale, 24 percent in the month following the sale, and 7 percent in the second month following the sale. Required a. Prepare a sales budget for the first quarter of year 1. b. Determine the amount of sales revenue Munoz will report on the year 1 first quarterly pro forma income statement. c. Prepare a cash receipts schedule for the first quarter of year 1. d. Determine the amount of accounts receivable as of March 31, year 1. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of accounts receivable as of March 31, year 1. (Do not…
Star Company was organized on August 1 of the current year. Projected sales for the next three months are as follows: August $250,000 September 200,000 October 275,000 The company expects to sell 50% of its merchandise for cash. Of the sales on credit, 30% are expected to be collected in the month of the sale and the remainder in the following month. What is Star Company expected cash collection for September?
please answer within 30 minutes. Projected Cash Receipts,Romaris Brothers Inc. needs a cash receipts schedule for the months of April, May, and June. Actual Sales: February = $500,000, March = $500,000. Forecast Sales: April =$560,000, May= $610,000, June= $650,000, July= $650,000, Assuming that sales are the only source of cash inflows and that 30% of them are for cash and the remainder are collected evenly over the following 2 months. Prepare a schedule of projected cash receipts for April, May and June. Projected Cash Disbursements Romaris Brothers Inc. needs a cash disbursement schedule for the months of April, May, and June. The following information was collected from financial records: Purchases: Purchases are calculated as 50% of the next month’s sales, 15% of purchases are made in cash, 60% of purchases are paid for 1 month after purchase, and the remaining 25% of purchases are paid for 2 months after purchase. Rent: The firm pays rent of $9,000 per month. Wages and…
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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 customers, while the remaining sales are to credit customers. Of the credit customers, 30% pay their accounts in the month of sale, while the remaining 70% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $58,000 November 65,000 December 72,000 The Accounts Receivable balance on September 30 was $35,000. Prepare a schedule of cash collections from sales for October, November, and December. Enter all amounts as positive numbers. OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 Line Item Description 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: Collected…
Financial information for Strawberry’s Place is as follows: Cash at 1/1/20X1 is $10,000. The firm desires to maintain a minimum balance of $10,000 at the end of each month. Total monthly sales are as follows: DecemberJanuaryFebruary 20X020X120X1 $120,000150,000 (est.)160,000 (est.) The sales are 40 percent cash and 60 percent credit card. Visa is the only acceptable credit card at Strawberry’s, and assume the charges are converted to cash the day of the sale. The brokerage charge is 2 percent of the sale. Expected other income is $2,000 from interest to be received in February. In addition, in January, a range with a net book value of $300 is expected to be sold for cash, resulting in a $1,000 gain on the sale. Food and beverages are paid for the month following the sale and average 40 percent and 25 percent, respectively. Food sales are four times beverage sales. Total sales consist of only food and beverage sales. Labor is paid for the last day of the month and…
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Bark & Purr Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows: May $260,000 June 290,000 July 390,000 All sales are on account. 53 percent of sales are expected to be collected in the month of the sale, 37% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for May, June, and July. May June July May sales on account: Collected in May $fill in the blank 1 Collected in June $fill in the blank 2 Collected in July $fill in the blank 3 June sales on account: Collected in June fill in the blank 4 Collected in July fill in the blank 5 July sales on account: Collected in July fill in the blank 6 Total cash collected $fill in the blank 7 $fill in the blank 8 $fill in the blank 9

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