**Rivers Company Purchasing Schedule**Rivers Company purchases merchandise on account. Generally, Rivers pays 50 percent in the month of purchase and 50 percent in the following month. All payments made in the month of purchase qualify for a 2 percent cash discount. The first quarter budgeted purchases are as follows:- **January:** $90,000- **February:** $80,000- **March:** $96,000**A. Cash Disbursements Expected in February**Calculate the total cash disbursements expected for February.**B. Cash Disbursements Expected in March**Calculate the total cash disbursements expected for March.**C. No Cash Discount Scenario**Assuming that there is no cash discount for purchases made in the month of purchase, determine the total cash disbursements expected in February and March.- **February Cash Disbursements:**- **March Cash Disbursements:**

Rivers Company purchases merchandise on account. In general, Rivers pays 50 percent in the month of purchase and 50 percent in the following month. All payments in the month of purchase qualify for a 2 percent cash discount. First quarter budgeted purchases are: January February March $90,000 80,000 96,000 A. What are the total cash disbursements expected in February? $ B. What are the total cash disbursements expected in March? C. Now suppose that there is no cash discount for purchases made in the month of purchase. What are the total cash disbursements expected in February and in March? February cash disbursements March cash disbursements

Rivers Company purchases merchandise on account. In general, Rivers pays 50 percent in the month of purchase and 50 percent in the following month. All payments in the month of purchase qualify for a 2 percent cash discount. First quarter budgeted purchases are: January February March $90,000 80,000 96,000 A. What are the total cash disbursements expected in February? $ B. What are the total cash disbursements expected in March? C. Now suppose that there is no cash discount for purchases made in the month of purchase. What are the total cash disbursements expected in February and in March? February cash disbursements March cash disbursements

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

I need correct solution
Evergreen Furniture, a retailing company, is preparing the cash budget for August. The following inventory information available: Estimated payments in August for purchases in August Estimated purchases for August Estimated cost of goods sold for August Estimated payments in August for purchases in July Estimated payments in August for purchases prior to July Inventories at beginning of August Required: What are the estimated cash disbursements in August? Estimated cash disbursements 70% $ 2,444,000 2,600,000 696,000 176,000 674,000
J. Lo's Clothiers has forecast credit sales for the fourth quarter of the year: Fourth Quarter September (actual) October November December Credit sales Collections: Experience has shown that 25 percent of sales are collected in the month of sale, 65 percent are collected in the following month, and 10 percent are never collected. Prepare a schedule of cash receipts for J. Lo's Clothiers covering the fourth quarter (October through December). In month of sales One month after sales $ 71,000 $ 61,000 56,000 81,000 Total cash receipts J.Lo's Clothiers September October November December
Assume receivables of $20,000 at the start of the January are all collected during the month; if sales for January and February are $400,000 and $300,000 respectively; the company typically receives payment from 20% of its customers within the same month, 60% the following month, and the remaining 20% by the end of the second following month, how much would accounts receivable be at the end of February?
Provide table
Julia's Candy Co. reports the following information from its sales account and sales budget: Sales Expected Sales: O $30,000 O $82,500 O $112,500 O $120,000 May June July O $202,500 August September Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. Based on the information from Julia's, the total amount of cash expected to be received from customers in September is: -O+ 14 B % F6 D $105,000 93,000 F7 $90,000 6 110,000 120,000 F8 & F9
Graham Company projects the following sales for the first three months of the year: $10,600 in January: $14,600 in February; and $16,300 in March. The company expects 80% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar. Read the requirements. Requirement 1. Prepare a schedule of cash receipts for Graham for January, February, and March. What is the balance in Accounts Receivable on March 31? (If an input field is not used, leave the input field empty. Do not enter a zero.) Cash Receipts from Customers Total sales Cash Receipts from Customers: Accounts Receivable balance, January 1 January-Cash sales January-Credit sales, collection of January sales in January January-Credit sales, collection of January sales in February February-Cash sales February-Credit sales, collection of February sales in…
How do you get the last addition loan and ending cash balance?
Evergreen Furniture, a retailing company, is preparing the cash budget for August. The following inventory information is available: Estimated payments in August for purchases in August Estimated purchases for August Estimated cost of goods sold for August Estimated payments in August for purchases in July Estimated payments in August for purchases prior to July Inventories at beginning of August Required: What are the estimated cash disbursements in August? Estimated cash disbursements 70% $ 2,428,000 2,560,000 672,000 160,000 658,000
Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows: August $100,000 September 185,000 October 225,000 The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating cash collections of accounts receivable for August, September, and October. For each month's sales on account, enter the collection months in chronological order. Trapp Co. Schedule of Collections of Accounts Receivable For Three Months Ending October 31, 20xX August September October August sales on account: Collected in August Collected in September September sales on account: Collected in September Collected in October October sales on account: Collected in October Totals
J. Lo's Clothiers has forecast credit sales for the fourth quarter of the year: Fourth Quarter September (actual) $ 73,000 October November December $ 63,000 58,000 83,000 Experience has shown that 35 percent of sales are collected in the month of sale, 60 percent are collected in the following month, and 5 percent are never collected. Prepare a schedule of cash receipts for J. Lo's Clothiers covering the fourth quarter (October through December). Credit sales Collections: In month of sales One month after sales Total cash receipts J. Lo's Clothiers September October November December $ 0 $ 0 $ 0
Garda purchased $690,000 of merchandise in August and budgets merchandise purchases of $670,000 in September. Merchandise purchases are paid as follows: 30% in the month of purchase and 70% in the month after the purchase. Prepare a schedule of cash payments for merchandise purchases for September. GARDA Schedule of Cash Payments for Merchandise Purchases September Merchandise purchases $ 670,000 Cash payments for: Current period purchases Prior period purchases Total cash payments for merchandise purchases