Rooney Ltd has recorded the following sales for the first three months of 2011: January £30,000 February £35,000 March £42, 000 70% of sales are paid for immediately in cash. Of the remaining 30% of sales, 60% are paid for 1 month later, 30% are paid for 2 months later, and 10% become bad debts. How much cash is expected to be received in March? £35, 700 £29, 400 £38, 400 £57,900

Rooney Ltd has recorded the following sales for the first three months of 2011: January £30,000 February £35,000 March £42, 000 70% of sales are paid for immediately in cash. Of the remaining 30% of sales, 60% are paid for 1 month later, 30% are paid for 2 months later, and 10% become bad debts. How much cash is expected to be received in March? £35, 700 £29, 400 £38, 400 £57,900

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

Please help me with show all Calculation thanku
H1.
Consider a company that has sales in May, June, and July of $11 million, $10 million, and $12 million, respectively. The firm is paid by 25% of its customers in the month of the sale, 50% in the following month, and 23% in the next month (2% are bad sales and never pay). What is the cash collected in July?
Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $170 $185 $200 $225 Sales for the first quarter of the year after this one are projected at $180 million. Accounts receivable at the beginning of the year were $71 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 25 percent of sales. Interest and dividends are $14 million per quarter. Wildcat plans a major capital outlay in the second quarter of $85 million. Finally, the company started the year with a $54 million cash balance and wishes to maintain a $30 million minimum balance. Assume that Wildcat can borrow any needed funds on a short-term basis at a rate of 3 percent per quarter and can Invest any excess funds in short-term marketable securities at a rate of 2 percent per…
4
XYZ sdn bhd estimating its cash requirement for the third quarter year 2011. The company's projected sales are as follows: month sales (rm) march 170,000 april 160,000 may 140,000 june 180,000 july 200,000 august 220,000 september 195,000 october 180,000 i) cash sales are 10% of the current month's sales, while 90% of them were sold on credit. 60% of the month's credit sales are paid in the month following the sale, while 30% of it are paid in the second month following the sales. another 10% is bad debt. ii) purchases are 50% of sales and were made one month before sales. iii) payments on accounts are on 30% of current month's purchases plus 70% of the previous month's purchases. iv) wages and salaries amounting to 10% of the preceeding month's sales. v) an 8% semi-annually interest payment on rm 100,000 notes payable is to the paid in July 2011. vi) the company plans to pay rm 6,500 in cash for a brand-new computer in august. vii) a quarterly dividend of rm 10,000 will be paid to ABC…
Whispering Company has the following sales projections for its second and third quarters: Аpril $300,000 Мay $320,000 June $340,000 July $360,000 August $350,000 September $330,000 Normal cash collection experience has been that 40% of sales are collected during the month of sale, 20% in the month following sale, and 35% in the second month following sale. The remaining 5% of sales is never collected.
Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Month Total sales Total cash receipts in Month 4 will be: Multiple Choice $27,230. $47,900. 1 2 3 $ 60,000 $ 70,000 $50,000 $30,000 £36 230
Vijay
You collect 75% of a month's sales in the month of the sale and 25% of sales in the following month. May sales June sales July sales O $105 O $35 $120 Compute cash inflows for June. $135 $140 $100 not enough information, because sales revenue differs
Pardee Company makes 30% of its sales for cash and 70% on account. 60% of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Month 1 2 3 4 Total sales $78,000 $80,000 $68,000 $48,000 Total cash receipts in Month 4 will be: A. 38,780 B.68,000 C.53,180 D.50,600
The cash balance at the beginning of September is £ 20,000. ii. Actual sales for July and August and expected sales for September are as follows: July August September Cash sales £ 19,000 £ 29,000 £ 39,000 Sales on account £ 6,000 £ 8,000 £ 9,000 iii. Sales on account are collected over a three-month period as follows: 10% collected in the month of sale, 80% collected in the following sale, and 7% collected in the second month following sale. The remaining 3% is uncollectible.iv. Purchases of inventory will total £ 24,000 for September. 20% of month’s inventory purchases are paid for during the month of purchase. The accounts payable remaining from Augusts’ inventory purchases total £ 15,000, all of which will be paid in September. v. Selling and administrative expenses are budgeted at £ 13,000 for September. Of this amount £ 4,000 is for depreciation. vi. Equipment costing £ 18,000 will be purchased for cash during September, and dividends totalled £3,000 will be paid during the…