Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale 20 Percent paid in the month after the sale 55 Percent paid in the second month after the sale 23 To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April $237,500 May 310,000 June 325,000 July 300,000 August 375,000 Required: 1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers. Roybal Inc. Schedule of Cash Receipts For July Payments on account: From May credit sales: $fill in the blank da1540f3fff5feb_1 × fill in the blank da1540f3fff5feb_2 % $fill in the blank da1540f3fff5feb_3 From June credit sales: $fill in the blank da1540f3fff5feb_4 × fill in the blank da1540f3fff5feb_5 % fill in the blank da1540f3fff5feb_6 From July credit sales: $fill in the blank da1540f3fff5feb_7 × fill in the blank da1540f3fff5feb_8 % fill in the blank da1540f3fff5feb_9 Less: July cash discount $fill in the blank da1540f3fff5feb_10 × fill in the blank da1540f3fff5feb_11 % fill in the blank da1540f3fff5feb_12 Cash receipts $fill in the blank da1540f3fff5feb_13 2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers. Roybal Inc. Schedule of Cash Receipts For August Payments on account: From June credit sales: $fill in the blank 83117702100e003_1 × fill in the blank 83117702100e003_2 % $fill in the blank 83117702100e003_3 From July credit sales: $fill in the blank 83117702100e003_4 × fill in the blank 83117702100e003_5 % fill in the blank 83117702100e003_6 From August credit sales: $fill in the blank 83117702100e003_7 × fill in the blank 83117702100e003_8 % fill in the blank 83117702100e003_9 Less: August cash discount $fill in the blank 83117702100e003_10 × fill in the blank 83117702100e003_11 % fill in the blank 83117702100e003_12 Cash receipts $fill in the blank 83117702100e003
Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale 20 Percent paid in the month after the sale 55 Percent paid in the second month after the sale 23 To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April $237,500 May 310,000 June 325,000 July 300,000 August 375,000 Required: 1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers. Roybal Inc. Schedule of Cash Receipts For July Payments on account: From May credit sales: $fill in the blank da1540f3fff5feb_1 × fill in the blank da1540f3fff5feb_2 % $fill in the blank da1540f3fff5feb_3 From June credit sales: $fill in the blank da1540f3fff5feb_4 × fill in the blank da1540f3fff5feb_5 % fill in the blank da1540f3fff5feb_6 From July credit sales: $fill in the blank da1540f3fff5feb_7 × fill in the blank da1540f3fff5feb_8 % fill in the blank da1540f3fff5feb_9 Less: July cash discount $fill in the blank da1540f3fff5feb_10 × fill in the blank da1540f3fff5feb_11 % fill in the blank da1540f3fff5feb_12 Cash receipts $fill in the blank da1540f3fff5feb_13 2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers. Roybal Inc. Schedule of Cash Receipts For August Payments on account: From June credit sales: $fill in the blank 83117702100e003_1 × fill in the blank 83117702100e003_2 % $fill in the blank 83117702100e003_3 From July credit sales: $fill in the blank 83117702100e003_4 × fill in the blank 83117702100e003_5 % fill in the blank 83117702100e003_6 From August credit sales: $fill in the blank 83117702100e003_7 × fill in the blank 83117702100e003_8 % fill in the blank 83117702100e003_9 Less: August cash discount $fill in the blank 83117702100e003_10 × fill in the blank 83117702100e003_11 % fill in the blank 83117702100e003_12 Cash receipts $fill in the blank 83117702100e003
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Schedule of Cash Collections on
Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience:
| Percent paid in the month of sale | 20 | ||
| Percent paid in the month after the sale | 55 | ||
| Percent paid in the second month after the sale | 23 |
To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows:
| April | $237,500 | |
| May | 310,000 | |
| June | 325,000 | |
| July | 300,000 | |
| August | 375,000 |
Required:
1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.
| Roybal Inc. Schedule of Cash Receipts For July |
||||
| Payments on account: | ||||
| From May credit sales: | ||||
| $fill in the blank da1540f3fff5feb_1 × fill in the blank da1540f3fff5feb_2 % | $fill in the blank da1540f3fff5feb_3 | |||
| From June credit sales: | ||||
| $fill in the blank da1540f3fff5feb_4 × fill in the blank da1540f3fff5feb_5 % | fill in the blank da1540f3fff5feb_6 | |||
| From July credit sales: | ||||
| $fill in the blank da1540f3fff5feb_7 × fill in the blank da1540f3fff5feb_8 % | fill in the blank da1540f3fff5feb_9 | |||
| Less: July cash discount | ||||
| $fill in the blank da1540f3fff5feb_10 × fill in the blank da1540f3fff5feb_11 % | fill in the blank da1540f3fff5feb_12 | |||
| Cash receipts | $fill in the blank da1540f3fff5feb_13 |
2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers.
| Roybal Inc. Schedule of Cash Receipts For August |
||||
| Payments on account: | ||||
| From June credit sales: | ||||
| $fill in the blank 83117702100e003_1 × fill in the blank 83117702100e003_2 % | $fill in the blank 83117702100e003_3 | |||
| From July credit sales: | ||||
| $fill in the blank 83117702100e003_4 × fill in the blank 83117702100e003_5 % | fill in the blank 83117702100e003_6 | |||
| From August credit sales: | ||||
| $fill in the blank 83117702100e003_7 × fill in the blank 83117702100e003_8 % | fill in the blank 83117702100e003_9 | |||
| Less: August cash discount | ||||
| $fill in the blank 83117702100e003_10 × fill in the blank 83117702100e003_11 % | fill in the blank 83117702100e003_12 | |||
| Cash receipts | $fill in the blank 83117702100e003_13 |
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