QUESTION 34 Leaning Tower of Pizza, Inc. is preparing its master budget for its first quarter of business. It expects to sell 1,000 pizzas at $8 per pizza per month. It expects to collect 90% of the sales in the month of the sale and 10% in the following month. Calculate its accounts receivable balance at the end of its first quarter.

QUESTION 34 Leaning Tower of Pizza, Inc. is preparing its master budget for its first quarter of business. It expects to sell 1,000 pizzas at $8 per pizza per month. It expects to collect 90% of the sales in the month of the sale and 10% in the following month. Calculate its accounts receivable balance at the end of its first quarter.

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 8.1 Sun Company manufacturers beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 30,000 August 70,000 September 50,000 October 20,000 November 10,000 December 10,000 The selling price of the umbrellas is $12 each. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern: 30% In the month of sale 65% In the month following sale 5% uncollectable Sales for June were $300,000 The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June. Each beach umbrella…
Question 10 Cash Budget Daybook Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale. If sales on account are budgeted to be $105,000 for September and $116,000 for October, what are the budgeted cash receipts from sales on account for October?
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esc QUESTION 36 Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It expects to sell 8,000 pizzas per month. It will purchase enough pizzas so that 100 pizzas are in inventory at all times by purchasing 8,100 pizzas in the first month and 8,000 pizzas in the second and third months. The pizza is expected to cost $5 per pizza. It expects to pay 70% in the month of purchase and the remainder in the following month. Calculate the amount of cash paid for inventory for its first quarter. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Q A I N 2 W S #3 X E H $ 4 D. R C 07 dº % 5 F MacBook Pro D T ^ 6 V G of Y 7 H B * 00 8 U J N 9 Save к O O M
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