Resco, a local retail establishment, expects to make inventory purchases as follows for the first quarter of 2016: January, $8,500; February,$10,200; and March, $12, 100. Prior experience shows that 25 of a given month's purchases are paid in the month of purchase with thebalance paid in the following month. No purchase discounts apply.What is the total expected cash disbursement for February? For March?

To calculate the total expected cash disbursements for February and March, we consider that 25% of a…

Answered: Resco, a local retail establishment,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9PA: Fitbands estimated sales are: What are the balances in accounts receivable for January, February,...

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Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?
Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May, and June if 60% of sales are collected in the month of sale, 30% are collected the month after the sale, and 10% are collected the second month after the sale?
Resco, a local retail establishment, expects to make inventory purchases as follows for the firstquarter of the year: January, $5,500; February, $6,500; and March, $8,000. Prior experience showsthat 25% of a given month’s purchases are paid in the month of purchase with the balance paid inthe following month. No purchase discounts apply. What is the total expected cash disbursement forFebruary? For March?
The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 2014 to be as follows: Sales Purchases August $25,000 $17,000 September 15,000 19,500 October 25,000 29,000 November 30,000 20,000 December 26,000 24,000 65% of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale. Purchases are paid 30 days after they are incurred. The firm had a cash balance of $5,000 as of September 30th, and its minimum required cash balance is $4,000. It had no beginning loan balance. Prepare a cash budget for October, November and December.
Assume Laksko's has credit sales of $462,400 in March, $507,500 in April, and $550,200 in May. Also assume that 64 percent of sales are collected in the month of sale, 35 percent are collected in the following month, and the remainder are never collected. Credit purchases are $224,600 in March, $236,700 in April, and $252,700 in May. Credit purchases are paid in 30 days. Interest is $12,400 a month, wages and other expenses are $64,400 a month. Fixed assets purchases of $119,500 are scheduled for April with additional purchases of $56,400 in May. The April 1 cash balance was $321,060 and taxes of $180,000 must be paid on April 15. What is the cash balance at the end of May?
10) The company recorded cash sales for an additional 12) 20 pairs of shoes for $65 each on the 24th of the month. 11) On the last day of the month, the company estimated sales returns for their sales. They estimate that 2% of sales will be returned. (Hint: use total sales from above) Prepare the appropriate journal entries for each transaction under a perpetual inventory system.
Consider the following details about a firm from the past year. Assume that this sample time period provides a good estimate for the firm's cycles. What is its Inventory Period? March 1 - Acquire Inventory March 20 - Pay $25,000 for Inventory April 22 - Sell Inventory on Credit May 23 - Collect $40,000 for Sale on Credit
Jabber Inc. wants ending inventory to be 30% of that next month’s cost of goods sold. In June, Jabber’s cost of goods sold is projected to be $460,000. July is projected to have $500,000 in cost of goods sold. Ending inventory in May was $130,000. Based on this information, required purchases for June would be:
not use ai please
Utley Co. prepares monthly income statements. Inventory is counted only at year end; thus, month-end inventories must be estimated. All sales are made on account. The rate of mark-up on cost is 20%. The following information relates to the month of May. Accounts receivable, May 1 Accounts receivable, May 31 Collections of accounts during May Inventory, May 1 Purchases during May $21,000 27,000 90,000 45,000 58,000 Answer the following Questions [DO NOT use commas (.) or dollar signs ($) when entering a number. For example, if you want to enter $1.000 simply write 1000]. 1. Sales revenue for the month of May = $ 2. Cost of goods sold for the month of May = $ 3. The gross profit for the month of May = $ 4. The cost of goods available for sale for the month of May = $ 5. The ending inventory to be reported on the balance sheet at the end of May=

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