The problem involves calculating the total budgeted cash collections for Pitkin Corporation in April based on their sales collection pattern. The company collects 70% of sales in the month of sale, 20% in the month following the sale, and 10% in the second month following the sale. The budgeted sales data are as follows:- January: $200,000- February: $300,000- March: $350,000- April: $250,000### QuestionWhat would be the total budgeted cash collections in April?### Answer Choices- $175,000- $275,000- $70,000- $30,000### ExplanationTo calculate April's cash collections:- **March Sales:** 70% collected in April from March's $350,000 is $245,000.- **February Sales:** 20% collected in April from February's $300,000 is $60,000.- **January Sales:** 10% collected in April from January's $200,000 is $20,000.**Total Collections in April:**- $245,000 (from March)- $60,000 (from February)- $20,000 (from January)**Total:** $325,000 (This is not one of the given answer choices. Please verify if there is an error or if the options provided are incorrect.)

Estimated cash receipts means how much cash will be collected from cash sales and from credit sales…

Answered: Seventy percent of Pitkin Corporation's…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May June July Sales $128,000 $156,000 $218,000 Manufacturing costs 54,000 67,000 78,000 Selling and administrative expenses 37,000 42,000 48,000 Capital expenditures _ _ 52,000 The company expects to sell about 12% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $9,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of May 1…
C2
The BRS Corporation makes collections on sales according to the following schedule: 45% in month of sale 53% in month following sale 2% in second month following sale The following sales have been budgeted: Sales April $220, 000 $150,000 May June $140, 000 Budgeted cash collections in June would be: Multiple Cholce $140,000 $142,500 $146,900 $140,440
The BRS Corporation makes collections on sales according to the following schedule: 40% in month of sale 55% in month following sale 5% in second month following sale The following sales have been budgeted: April May June Sales $110,000 $120,000 $110,000 Budgeted cash collections in June would be: Multiple Choice $115,500 $110,000 $110,550 $112,000
Assume the following budgeted information for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $248,000, $218,000, and $209,000, respectively. • Cash collections related to credit sales are expected to be 70% in the month of sale, 30% in the month following the sale. • The cost of goods sold is 70% of sales. • Each month's ending inventory equals 20% of next month's cost of goods sold. • 30% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month. • Monthly selling and administrative expenses that are paid in cash in the month incurred total $25,000. • Monthly depreciation expense is $9.000. . The budgeted net operating income for December would be: Multiple Choice $40,400 $25,734 $16,734 $31,400
Meredith Company has budgeted sales for the upcoming months as follows: $ 452,000 $ 467,000 $ 498,000 $ 516,000 $ 503,000 $ April Мay June July August September $ 478,000 40% of the sales are credit sales, the remainder are made in cash. Credit sales are collected 50% in the month of sale, 35% in the month following the sale, and 8% in the second month following the sale. a. Compute Meredith Company's cash receipts for June. (Do not round intermediate calculations.) Cash Receipts b. Compute Meredith Company's cash receipts for July. (Do not round intermediate calculations.) Cash Receipts c. Compute Meredith Company's cash receipts for August. (Do not round intermediate calculations.) Cash Receipts
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Capstone Inc. collects 80% of its sales on account in the month of the sale and 20% in the month following the sale. If sales on account are budgeted to be $399,000 for September and $479,000 for October, what are the budgeted cash receipts from sales on account for October?
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A company makes collections on sales according to the following schedule: 50% in month of sale 45% in month following sale 5% in second month following sale The following sales have been budgeted: April May June Sales $180,000 $190,000 $180,000 Budgeted cash collections in June would be:

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