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Question 2 Langly Company has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 60,000 65,000 May 45,000 55,000 June 70,000 55,000 All units are sold at $16 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $520,000 ($100,000 from February's sales and the remainder from March). Prepare a schedule for each month showing budgeted cash receipts for Langly Company.

Question 2 Langly Company has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 60,000 65,000 May 45,000 55,000 June 70,000 55,000 All units are sold at $16 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $520,000 ($100,000 from February's sales and the remainder from March). Prepare a schedule for each month showing budgeted cash receipts for Langly Company.

FINANCIAL ACCOUNTING
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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Question 2 Langly Company has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 60,000 65,000 May 45,000 55,000 June 70,000 55,000 All units are sold at $16 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $520,000 ($100,000 from February's sales and the remainder from March). Burt's Prepare a schedule for each month showing budgeted cash receipts for Langly Company.
Transcribed Image Text:Question 2 Langly Company has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 60,000 65,000 May 45,000 55,000 June 70,000 55,000 All units are sold at $16 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $520,000 ($100,000 from February's sales and the remainder from March). Burt's Prepare a schedule for each month showing budgeted cash receipts for Langly Company.
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