Sheffield Company's budgeted sales and direct materials purchases are as follows. Budgeted Budgeted D.M. Purchases Sales January $260,000 $39.000 February 286,000 46,800 March 325,000 49.400 Sheffield's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale: 4% are uncollectible. Sheffield's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March. SHEFFIELD COMPANY Schedule of Expected Collections from Customers March Total collections

Sheffield Company's budgeted sales and direct materials purchases are as follows. Budgeted Budgeted D.M. Purchases Sales January $260,000 $39.000 February 286,000 46,800 March 325,000 49.400 Sheffield's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale: 4% are uncollectible. Sheffield's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March. SHEFFIELD COMPANY Schedule of Expected Collections from Customers March Total collections

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

Fedor, Inc. has prepared the following direct materials purchases budget: Budgeted DM Purchases $69.000 77,000 78,700 77,800 76,200 All purchases are paid for as follows: 40% in the month of purchase, 50% in the following month, and 10% two months after purchase. Calculate total budgeted cash payments made in October for purchases. Month June July August September October OA. $77,250 OB. $46,770 OC. $38,350 O D. $69,380
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
iiii
am. 108.
General Electric Company had cash of $14,000 on hand on January 1. During the year, the company expected the following cash collections from customers by quarter: (06)First Second Third FourthCash collections 110,000 177,500 183,700 136,000Direct materials purchases in tons were budgeted as follows:First Second Third FourthDirect materials purchase 65,000 75,000 55,000 50,000The production budget showed the following unit production by quarter with an average labor rate of $40.00:First Second Third FourthUnits to be produced 1,500 2,000 1,700 1,500General Electric Company planned to pay dividends of $10,000 per quarter during the year. During July, new equipment costing $60,000 will be purchased. An additional $16,000 was planned to installation costs during the fourth quarter.The company was required to maintain a minimum cash balance of $15,000. A line of credit was available for short-term borrowings in increments of $1,000. All borrowings will be made at the beginning of a quarter…
Griffith Company has budgeted purchases of inventory for December of $105,000. Expected beginning inventory on December 1 and ending inventory on December 31 are $120,000 and $129,000, respectively. If the cost of goods sold averages 75% of sales, what are budgeted sales for December? A. $114,000 B. $152,000 C. $120,000 D. $128,000
Please do not give solution in image format thanku
XYZ Company produces and sells one product. The budgeted selling price per unit is $30. Budgeted unit sales for July, August, September, October and November are 1,400 units, 2, 100 units, 3,400 units. 2,700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month folowing sale. The expected total cash collections in September is closest to: Select one: O a. None of the given answers O b. $70,500 O c $94,000 O d. $96,300 O e. $82.250
Kuzma Foods, Inc. has budgeted sales for June and July at $680,000 and $765,000, respectively. Sales are 80% credit, of which 60% is collected in the month of sale and 40% is collected in the following month. What is the budgeted Accounts Receivable balance on July 31? OA. $306,000 OB. $217,600 OC. $612,000 OD. $244,800
Wells Company reports the following budgeted sales: September, $53,000; October, $72,000; and November, $87,000. All sales are on credit, and 5% of those credit sales are budgeted as uncollectible. Collection of the remaining 95% of credit sales are budgeted as follows: 60% in the first month after sale and 35% in the second month after sale. Prepare a schedule of cash receipts from sales for November.
Denger
Al Manufacturing is preparing its master budget. Budgeted sales and cash payments follow. July $63,400 Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead 12,480 10,400 18,720 August $80,600 9,900 8,250 14,850 September $48,600 10,140 8,450 15,210 Sales to customers are 20% cash and 80% on credit. Sales in June were $58,750. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $12,900 in cash and $2,600 in loans payable. A minimum cash balance of $12,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,600. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $12,600 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,600 per month), and rent ($7,100 per month). 1.…