Please do not give solution in image format thanku Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.MarchAprilMayJuneJulyAugust$ 50,00059,00041,00056,00067,00071,000Sales in January and February were $41,000 and $39,000, respectively. Experiernt has shown that of total sales receipts 5 percentare uncollectible, 50 percent are collected in the month of sale, 40 percent are collected in the following month, and 5 percent arecollected two months after sale.Prepare a monthly cash receipts schedule for the firm for March through AugustCredit salesCollectionsIn month of saleOne month after saleTwo months after saleTotal cash receiptsJanuaryFebruarySimpson Glove CompanyCash Receipts ScheduleAprilMarchMayJuneJulyAugust

Cash receipts is the part of cash budget prepared by the management for estimating the cash to be…

Answered: Simpson Glove Company has made the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9PA: Fitbands estimated sales are: What are the balances in accounts receivable for January, February,...

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Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.

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