Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May June July August $ 38,000 47,000 29,000 44,000 55,000 59,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 40 percent are collected in the month of sale, 30 percent are collected in the following month, and 20 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August. Credit sales Collections: In month of sale One month after sale Two months after sale January February $ 41,000 $ 39,000 Simpson Glove Company Cash Receipts Schedule March April $ 38,000 $ $ 16,920 × $ 13,680 S 10,260 x 6,840 x 30,780 $ 12,690 X 8,460 X Total cash receipts 38,070 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 47,000 $ $ May 29,000 $ 10,440 x $ 7,830 5,220 23,490 $ June 44,000 $ 15,840 × S 11,880 x 7,920 X 35,640 $ July 55,000 $ 19,800 $ 14,850 x 9,900 X 44,550 $ August 59,000✔ 21,240 x 15,930 X 10,620 X 47,790

Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May June July August $ 38,000 47,000 29,000 44,000 55,000 59,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 40 percent are collected in the month of sale, 30 percent are collected in the following month, and 20 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August. Credit sales Collections: In month of sale One month after sale Two months after sale January February $ 41,000 $ 39,000 Simpson Glove Company Cash Receipts Schedule March April $ 38,000 $ $ 16,920 × $ 13,680 S 10,260 x 6,840 x 30,780 $ 12,690 X 8,460 X Total cash receipts 38,070 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 47,000 $ $ May 29,000 $ 10,440 x $ 7,830 5,220 23,490 $ June 44,000 $ 15,840 × S 11,880 x 7,920 X 35,640 $ July 55,000 $ 19,800 $ 14,850 x 9,900 X 44,550 $ August 59,000✔ 21,240 x 15,930 X 10,620 X 47,790

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...

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