Q.2 A Rodriques Mountain Climbing, Inc. (RMC) has the following informatic Previous Sales: November 2007 130,000 December 2007 125,000 Forecast sales for: January 2008 120,000 February 2008 260,000 March 2008 140,000 April 2008 140,000 Collections : 30% of customers pay cash 50% pay in month after sale 20% pay 2 months after sale Other information for RMC Cash Budget: Purchases of inventory are 75% of sales and are made 2 months before sale and are paid for 1 month after delivery Other expenses $14,000 per month Taxes $10,000 due in March Cash Balance (Dec. 31, 2007) $28,000 Minimum balance required by bank $25,000 (ST borrowing rate 6% annually) Prepare a cash budget for the month of January, Feb and March.

Q.2 A Rodriques Mountain Climbing, Inc. (RMC) has the following informatic Previous Sales: November 2007 130,000 December 2007 125,000 Forecast sales for: January 2008 120,000 February 2008 260,000 March 2008 140,000 April 2008 140,000 Collections : 30% of customers pay cash 50% pay in month after sale 20% pay 2 months after sale Other information for RMC Cash Budget: Purchases of inventory are 75% of sales and are made 2 months before sale and are paid for 1 month after delivery Other expenses $14,000 per month Taxes $10,000 due in March Cash Balance (Dec. 31, 2007) $28,000 Minimum balance required by bank $25,000 (ST borrowing rate 6% annually) Prepare a cash budget for the month of January, Feb and March.

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

A2
The BRS Corporation makes collections on sales according to the following schedule: 45% in month of sale 53% in month following sale 2% in second month following sale The following sales have been budgeted: Sales April $220, 000 $150,000 May June $140, 000 Budgeted cash collections in June would be: Multiple Cholce $140,000 $142,500 $146,900 $140,440
Consider the following information for a given company: Month Cash Sales Credit Sales Jan $80.000 $350,000 Feb $60,000 $200,000 Mar $50.000 $145,000 Apr $45,000 $130,000 May $55,000 $170,000 Jun $50,000 $150,000 The firm's collection pattern is as follows: 60% in the month of sale 30% one month following sale 10% two months following sale The accounts receivable balance on 1 Jan is $70,000. Of this amount, $60,000 represents uncollected Dec sales and $10,000 represents uncollected Nov sales. Required: Determine the total cash collected during Jan. (INPUT YOUR ANSWER IN THOUSANDS USING A COMMA SEPARATOR. NO ROUNDING REQUIRED. FOR EXAMPLE: 100,000)
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
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
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 $117,000 February $152,000 March $132,000 Cash collections in March should be budgeted to be: Multiple Choice $130,800. $133.200. $140.160. $132,000.
subject - accounting
Cash Flow Budget Assumptions: Beginning balance is $20,000 Cost of goods sold is 80% of sales Building rent is $3,000 a month Accounts payable turnover ratio is 12 Accounts receivable ratio is 6 Inventory turnover ratio is 6 A quarter of sales are paid in cash Minimum cash balance is never less than $5,000
Expected cash collections in December are: P54,400 P256,000 P320,000 P310,400
Help me please
COVID 19 Co has forecast purchases on account to be $312.000 in March, $377.000 in April, $421,000 in May, and $499,000 in June. Sixty percent of purchases are paid for in the month of purchase, the remaining 40% are paid in the following month. What are budgeted cash payments for May? Select one Oa $351.000 b. S403.400 C $125.000 Od $384.000
Joyner Company has the following historical collection pattern for its credit sales: 60% collected in month of sale 20% collected in the first month after sale 15% collected in the second month after sale 4% collected in the third month after sale 1% uncollectible Budgeted credit sales for the last six months of the year follow. July $49,000 August 54,000 September 59,000 October 64,000 November 69,000 December 61,500 Required: -A. Calculate the estimated total cash collections during October. B. Calculate the estimated total cash collections during the year's fourth quarter. A. Total cash collections during October B. Total cash collections during the year's fourth quarter