Answered: Required: 1. Prepare a schedule of…

Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming…

A: ACCOUNTS RECEIVABLE An account receivable is produced when a business offers goods or services on…

Q: For the months of January and February, Crane Ltd. recorded cash deposits in its books of $5,100 and…

A: Given that there are no deposits in transit at the beginning of January. Cash deposit in January and…

Q: Silver Company makes a product with peak sales in May of each year. Its sales budget for the second…

A: The account receivables represent the amount due from the customers. The cash collection schedule is…

Q: Cash budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: The IM Broke Co., has the following collection pattern for its accounts receivable: 40% in the month…

A: Entities often prepare for its expected collections from total sales made, where it can able to get…

Q: Harrah Company provided the following information for the month of October: Beginning cash balance $…

A: Cash equivalents are high-credit-quality, high-liquidity financial vehicles suited for short-term…

Q: The following information is available for Birch Company at December 31: Cash in registers…

A: Cash and cash equivalents: These are the current assets presented on the balance-sheet that reflects…

Q: Use the following information to answer questions 1-3: January Cash Sales $40,000 Credit Sales…

A: To determine the balance on March 31, we need to calculate the total collections from January to…

Q: Sales taxes collected from customers are sent to the state at the end of each month. What journal…

A: Sales tax is that amount which is charge by the seller from his customer. It is charge on every…

Q: The following table gives the average monthly balances for one bank customer for April through June.…

A: Step 2: Step 3: Step 4:

Q: Using the Information below, compute the cash conversion cycle: 42 days 59 days 52 days Days' sales…

A: Cash conversion cycle is the number of days it takes for an inventory to convert into cash.

Q: Madison Company's cash ledger reports the following for the month ending March 31. Deposits: Cash…

A: A bank reconciliation statement is a financial document that reconciles the bank statement balance…

Q: Need Help

A: Step 1:The ending cash balance for a period should be equal to the sum of the beginning cash balance…

Q: b. Prepare a schedule of monthly cash payments for June through September. Note: Input all amounts…

A: A cash budget is prepared by the companies where they estimate the cash inflows and cash outflows…

Q: The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming…

A: Accounts receivable refer to the amounts owed to a company by its customers or clients for goods or…

Q: 1. HIRO Company provided you its June bank statement for its PNB demand account. The beginning…

A: The bank reconciliation statement is prepared to equate the balance of cash book and pass book with…

Q: A company's Cash account shows a balance of $5,630 at the end of the month. Comparing the company's…

A: Bank Reco Statement :-…

Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…

A: Companies making sales on account must have a sound collection policy. The company making sales on…

Q: b. Prepare a schedule of monthly cash payments for January, February, and March. Note: Input all…

A: Cash payment schedule is a financial budget that shows the outflow or payments of all accounts…

Q: Choose the letter of the correct answer: Sassy Company provided the following data for the month of…

A: The bank reconciliation statement is prepared to equate the cash book and passbook balance with…

Q: Davis and Davis have expected sales of $490, $465, $450, and $570 for the months of January through…

A: Accounts receivable (AR) refers to the money owed to a business by customers for goods or services…

Q: g cash balance 410,925 in March?

A: Mary and Kay Inc maintain a minimum of $80,000 cash balance at the end of each month in the quarter.…

Q: Cash Receipts for September = PHP 305,450; October = PHP 85,405; and November =PHP 375,195. Cash…

A: Cash budget is that which is prepared in every organization. It helps in future cash maintance for…

Q: A customer in a bank has made a balance withdrawal transaction in the last 30 days. In the last 28…

A: Central tendency is the central value of the given frequency distribution, it is the representative…

Q: The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming…

A: Collection Period:Usually in a business sales are made on both cash and credit basis. The credit…

Q: OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25%…

A: Cash collection means the amount of money expected to be collected by the entity from the sales of…

Q: Assume that the custodian of a $450 petty cash fund has $57.10 in coins and curency plus $387.00 in…

A: The petty cash fund is established to maintain the cash for day-to-day transactions of the business.…

Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Exercise 8-1 (Algo) Schedule of Expected Cash Collections [LO8-2]
Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in
the company's sales budget for the second quarter given below:
Required 1
April
$ 380,000
Complete this question by entering your answers in the tabs below.
Required 2
Budgeted sales (all on account)
From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 60% are
collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are
negligible and can be ignored. February sales totaled $310,000, and March sales totaled $340,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
2. What is the accounts receivable balance on June 30th?
What is the accounts receivable balance on June 30th?
Total accounts receivable at June 30
May
$ 580,000
< Required 1
June
$ 200,000
Required 2 >
Total
$ 1,160,000

Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in
the company's sales budget for the second quarter given below:
April
$ 380,000
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
May
$ 580,000
Budgeted sales (all on account)
From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 60% are
collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are
negligible and can be ignored. February sales totaled $310,000, and March sales totaled $340,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
2. What is the accounts receivable balance on June 30th?
February sales
March sales
April sales
May sales
June sales
Total cash collections
Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
Schedule of Expected Cash Collections
April
May
June
June
$ 200,000
Total
Total
$ 1,160,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Definition of cash collection

VIEW

Step 2: Requirement 1 Schedule of expected cash collections

VIEW

Step 3: Requirement 2 Accounts receivable on June 30

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Directions: Read each senterce carefully and determine whether the statement is TRUE or FALS E. Write your answers on the space provided before each number. 1. At the beginning of the day, you have P200 cash in your pocket. At the end of the day, you have P50 left. If you make a horizontal analysis of your cash, you would conclude that your cash has decreased by 80% during the day. 2. In 2019, Entity A reported sales of P100 and profit of P20. In a vertical analysis, a financial statement user would conclude that Entity A was able to generate 20% profit from every peso of its sales during the period. 3. Entity A reported irventory balances of P100 and P50 in 2019 and 2018, respectively. In a horizontal analysis, a financial statement user would conclude that Entity A's inventory has increased by 50% from2018 to 2019. 4. An analysis of the intenelationships of infomation in a single period, expressed as parcentages of a common denomirator, is called horizortal analysis. 5. A comparison…
Sparks Corporation has a cash balance of $24,100 on April 1. The company must maintain a minimum cash balance of $6,500. During April, expected cash receipts are $49,000. Cash disbursements during the month are expected to total $68,500. Ignoring interest payments, during April the company will need to borrow:
Preparing a Schedule of Cash Collections on Accounts Receivable Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing, and 25% will be paid in the second month following billing. For the next 5 months, the following sales billings are expected: May $84,000 June 100,800 July 77,000 August 86,700 September 92,000 Required: Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers. Kailua and Company Schedule August September June: 2$ % July: 2$ % 24 % August: 2$
Please help me. Thankyou.
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year: QI $ 210 Sales 02 $ 270 Beginning receivables Sales Cash collections Ending receivables Q3 $ 330 a. Accounts receivable at the beginning of the year are $480. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Beginning receivables Sales Cash collections Ending receivables Q1 210 Q1 04 $480 210 Q2 Q2 270 b. Accounts receivable at the beginning of the year are $480. The company has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. 270 Q3 Q3 330 330 Drair Q4 Q4 480 480 21.10 H
Part 1: 1. Identify and list the deposits in transit at the end of December. 2. Identify and list the outstanding checks at the end of December. Part 2: Prepare a bank reconciliation for December. Part 3: 1. Record the interest of $60 received from the bank. 2. Record the service charges of $130 deducted by the bank. 3. Record the return of the J. Left check of $280 due to insufficient funds 4. Record the checks outstanding at the end of the month. 5. Record the deposit in transit at the end of the month. Part 4: After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? If the company also has $280, of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the December 31 balance sheet?
c. Accounts receivable at the beginning of the year are $335. The company has a 30-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Beginning receivables Sales Cash collections Ending receivables $ Q1 335 750 Q2 810 I Q3 890 Q4 980
1. The treasurer of Yoda Inc. needs to estimate cash collections from accounts receivable for September, October, and November 2022. Forty percent of the company's customer's pay in cash the rest are credit customers. The collection pattern for the credit customers is 20% in the month of the sale and 80% in the following month. They have zero uncollectible accounts. Estimated total sales are as follows: August $70,000 September $80,000 October $85,000 November $100,000 a. What is Yoda's cash collections for September, October, and November? - September cash collections: - October cash collections: - November cash collections: b. The accounts receivable balance at the end of November will be:
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year 01 02 04 Sales # 330 $390 a. Accounts receivable at the beginning of the year are $360. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Beginning receivables Sales Cash collections Ending receivables 03 $450 Beginning receivables Sales Cash collections Ending receivables S Beginning receivables Sales Cash collections Ending receivables 01 01 300 330 01 330 b. Accounts receivable at the beginning of the year are $360. The company has a 60-day collection period Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e-g.. 32. 02 330 02 390 Q² 390 03 350 03 450 03 c. Accounts…
i need the answer quickly
Consider the following information: Suppliers’ payment period 40 days Receivables’ collection period 40 days Finished goods holding period 15 days Work – in progress holding period 10 days Raw materials inventory holding period 20 days b)What is the cash cycle? Select one: A. 35 days B. 45 days C. 30 days D. None of the above