Problem 3. Taura Corp has the following past information for its credit sales:60% of sales are collected in month of sale25% of sales are collected in the month after sale8% of sales are collected in the second month after sale5% of sales are collected in the third month after sale2% uncollectibleCredit sales for the last six months of the year are budgeted as follow.JulyAugustSeptemberOctoberUS$20,00025,00030,00035,00040,00032,500NovemberDecemberRequired: Calculate the estimated total cash collections during the year's fourth quarter (October,November, and December).

Whenever a business sales goods to its customers then it can be on cash basis or on credit basis.…

Answered: Problem 3. Taura Corp has the following…

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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Center Company makes collections on sales according to the following schedule: 40% in the month of sale 50% in the month following sale 7% in the second month following sale The following sales are expected: Expected Sales January $ 106,000 February $ 142,000 March $ 125,000 Cash collections in March should be budgeted to be: $126,330. $128,420. $121,000. $125,000.
2. Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,620,000 Quarter 2 5,610,000 Quarter 3 1,190,000 Quarter 4 7,840,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $5,640,000 and for the fourth quarter of the current year are $7,320,000. Required: Question Content Area 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. Quarter Cash Sales Credit Sales 3, current year $fill in the blank 0b62a1fb700f07d_1 $fill in the blank…
Do it on the Road Bus Co.’s sales budget for the second quarter is as follows: April $200,000 May 225,000 June 250,000 All sales are on account (credit) with 50% collected in the month of sale, 40% collected in the following month after sale, and 10% collected in the second month after sale. There are no uncollectable accounts. Required: What would be the budgeted cash collections in the month of June?
The BRS Corporation makes collections on sales according to the following schedule: 40% in month of sale 55% in month following sale 5% in second month following sale The following sales have been budgeted: April May June Sales $110,000 $120,000 $110,000 Budgeted cash collections in June would be: Multiple Choice $115,500 $110,000 $110,550 $112,000
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QUESTION 1 Ginobili has forecast sales to be $120100 in February, $151200 in March, $162700 in April, and $174000 in May. 24% of sales are on made on credit, the rest are for cash. The sales on credit are collected 40% in the month of sale, and 60% the month following. What are the total budgeted cash receipts in April?
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Problem 01:4 ZYX has total sales for June and July of $30,000 and $25,000, respectively. Cash sales are normally 40% of total sales. Of the credit sales, 40% are collected in the same month as the sale, 50% are collected during the first month after the sale, and the remaining 10% are collected in the second month. Determine the amount of accounts receivable reported on the company's budgeted balance sheet as of July 31.
Italian Exports, Inc. For March Sales are expected to increase each month by 10%. Prepare a budgeted income statement

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