Chapter 5 - Planning BudgetsProblem 5.1: The Executive Committee of the West Company has gathered to pay homage to the founder and to discuss theupcoming 3rd Quarter budget. The marketing department has provided the following sales budget:2nd Quarter: Actual results3rd Quarter: Budget4th Quarter: BudgetApril4,000JulyAugust4,800SeptOctМay3,500JuneNovSales - Units5,0006,0005,6004,2002,500Sale - Price$5.00$5.00$5.00$5.00$5.00$5.00$5.00$5.00Sales - Total ($s)$20,000$17,500$25,000$30,000$24,000$28,000$21,000$12,500Additional information:Required ending inventory levels: Finished goods (production) – 10.00%; Raw materials – 15.00%.Scrap rates: Production – 10.00%; Raw materials – 5.00%Units of raw materials required for each finished unit: 6 poundsCash sales: Of the total sales in the above sales budget, on average 5% are cash sales with the remainder being credit sales.Credit sales typically are collected as follows: Month of sale – 30.00%, 1st month after – 25.00%, and 2nd month after – 40.00%.Required:1. Explain why sales budgets should contain both sales in units and dollars.Prepare a raw materials purchases budget for the July2.3.Prepare a schedule of cash collections for June4. Prepare an Accounts Receivable reconciliation for JuneProblem 5.2: Consider the following data to prepare an Accounts Receivable reconciliationSales Budget:JanFebMarchAprilMayJuneTotal sales$600,000$840,000$1,000,000$1,240,000$1,100,000$360,000Less: cash sales90,000126,000150,000186,000165,00054,000Total credit sales$510,000$714,000$850,000$1,054,000$935,000$306,000Rates of credit sales collections: Month of sale = 20%, 1st month after sale = 40%, and 2nd month after sale = 30%For JUNE, complete the following Accounts Receivable reconciliation:June CashCollectionsMonthOf SaleCredit salesTOTAL Collections of Credit Sales+ Cash Sales= TOTAL Cash Collections

Problem 5.2: Credit sales refers to the sale in which the amount owed by customers who do not make…

Problem 5.2: Consider the following data to prepare an Accounts Receivable reconciliation Sales Budget: Jan Feb March April May June Total sales $600,000 $840,000 $1,000,000 $1,240,000 $1,100,000 $360,000 Less: cash sales 90,000 126,000 150,000 186,000 165,000 54,000 Total credit sales $510,000 $714,000 $850,000 $1,054,000 $935,000 $306,000 Rates of credit sales collections: Month of sale = 20%, 1t month after sale = 40%, and 2nd month after sale = 30% For JUNE, complete the following Accounts Receivable reconciliation: Month June Cash Of Sale Credit sales Collections TOTAL Collections of Credit Sales + Cash Sales = TOTAL Cash Collections

Problem 5.2: Consider the following data to prepare an Accounts Receivable reconciliation Sales Budget: Jan Feb March April May June Total sales $600,000 $840,000 $1,000,000 $1,240,000 $1,100,000 $360,000 Less: cash sales 90,000 126,000 150,000 186,000 165,000 54,000 Total credit sales $510,000 $714,000 $850,000 $1,054,000 $935,000 $306,000 Rates of credit sales collections: Month of sale = 20%, 1t month after sale = 40%, and 2nd month after sale = 30% For JUNE, complete the following Accounts Receivable reconciliation: Month June Cash Of Sale Credit sales Collections TOTAL Collections of Credit Sales + Cash Sales = TOTAL Cash Collections

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Do not give solution in imagr
Exercise 13-35 (Algo) Estimate Cash Collections (LO 13-5) Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable: Estimated credit sales for August $ 130,000 Actual credit sales for July $ 99,000 Estimated collections in August for credit sales in August 25 % Estimated collections in August for credit sales in July 70 % Estimated collections in August for credit sales prior to July $ 11,000 Estimated write-offs in August for uncollectible credit sales $ 5,000 Estimated provision for bad debts in August for credit sales in August $ 4,800 Required: What is the estimated amount of cash receipts from accounts receivable collections in August?
Please do not give solution in image format thanku
Cc. 194.
QUESTION 4 REQUIRED Use the information provided by empire Traders to prepare the following for March and April 2024: 4.1 Debtors Collection schedule 4.2 Cash Budget INFORMATION The following information was provided by Empire Traders: 1. Empire Traders expects to have a favourable bank balance of R60 000 on 28 february 2024. 2. Budgeted sales figures for 2024 are as follows: January February March April Cash Sales R320 000 R370 000 R310 000 R 250 000 Credit Sales R370 000 R390 000 R320 000 R300 000 3. Thirty percent (30%) of the cash sales is to informal traders who are entitled to a discount of 10%. Collections from debtors are usually as follows: 80% is collected in the month after sale 20% is collected two months after the sale 4. Purchases of inventory are expected to be as follows: January February March April Total Purchases R410 000 R460 000 R400 000 R380 000 5. Sixty percent (60) of then purchases is for cash to take advantage of a discount of 15%. The balance is purchased on…
11 Skipped Campbell Medical Clinic has budgeted the following cash flows. January February March Cash receipts $104,000 $110,000 $130,000 Cash payments For inventory purchases For S&A expenses 92,000 74,000 33,000 34,000 Campbell Medical had a cash balance of $10,000 on January 1. The company desires to maintain a cash cushion of $9,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent per month. Repayments may be made in any amount available. Campbell pays its vendors on the last day of the month also. The company had a monthly $40,000 beginning balance in its line of credit liability account from this year's quarterly results. Required Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign.) January February Cash Budget Section 1: Cash Receipts 87,000 29,000 Total cash available Section 2: Cash…
6 00:50:46 ipped Book 8 Hint Print erences The following is the sales budget for Lemonis, Incorporated, for the first quarter of 2021: January February Sales budget $ 202,000 $ 222,000 March $ 245,000 Credit sales are collected as follows: 60 percent in the month of the sale. 30 percent in the month after the sale. 10 percent in the second month after the sale. The accounts receivable balance at the end of the previous quarter was $86,000 ($56,000 of which was uncollected December sales). a. Calculate the sales for November. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Calculate the sales for December. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Calculate the cash collections from sales for each month from January through March. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. November sales b. December sales c. January cash…
Do not give solution in image
Please dont give image based answers... thank you
Exercise 7-3A (Algo) Preparing a schedule of cash receipts LO 7-2 The budget director of Heather's Florist has prepared the following sales budget. The company had $132,600 in accounts receivable on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Complete the schedule of cash receipts by filling in the missing amounts. Sales Budget Cash sales Sales on account Total budgeted sales Schedule of Cash Receipts Current cash sales Plus: Collections from accounts receivable $ July 70,000 $ 97,000 $ 167,000 $ $ August 70,000 $ + September 82,000 $ 116,000 198,000 82,000 78,000 132,600 $ 210,600 $ 78,000
No hand written solution please
2.1