Spicer & Co has budgeted its credit sales as follows: June $ 600,000 July $ 600,000 August $ 800,000 September $ 1,200,000 October $ 1,400,000 November $ 1,600,000 Collections of credit sales are normally as follows: Collected within 30 days of the end of the month of sale: 50% Collected in 30-60 days: 30% Collected in 60-90 days: 15% Uncollectible: 5% The cash balance on 1st October is expected to be $200,000. Cash payments are expected to total $800,000 each month for July to November. The cash balance at the end of October is expected to be. Question 25 options: $ 330,000 $1,160, 000 $1,400,000 $960, 000 none of the options

Spicer & Co has budgeted its credit sales as follows: June $ 600,000 July $ 600,000 August $ 800,000 September $ 1,200,000 October $ 1,400,000 November $ 1,600,000 Collections of credit sales are normally as follows: Collected within 30 days of the end of the month of sale: 50% Collected in 30-60 days: 30% Collected in 60-90 days: 15% Uncollectible: 5% The cash balance on 1st October is expected to be $200,000. Cash payments are expected to total $800,000 each month for July to November. The cash balance at the end of October is expected to be. Question 25 options: $ 330,000 $1,160, 000 $1,400,000 $960, 000 none of the options

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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Elordi Engineers Corp. has the following budgeted sales data (in dollars): June July August September Credit Sales 290,000 300,000 260,000 310,000 Cash Sales 70,000 70,000 70,000 70,000 The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following sale, and the remainder in the second month following the month of sale. There are no bad debts. What would the budgeted cash receipts during September be? Round your answer to the nearest whole number.
The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: October September October November $125,000 $154,000 $201,000 53,000 66,000 72,000 76,000 48,000 44,000 46,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% 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 $6,000 of the estimated monthly manufacturing costs. The annual Insurance premium is paid in January, and the annual property taxes are paid in December. 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. Sales Manufacturing costs Selling and administrative expenses Capital expenditures Current assets as of September 1 include…
OBUTJX493 Corporation's operational data are below: Sales are budgeted at $ 260,000 for November, $327,000 for December, and $210,000 for January. All sales are credit sales Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible. The cost of goods sold is 65% of sales. The OBUTJX493 company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. December cash disbursements for OBUTJX493's merchandise purchases would be:
Hunt Company's sales, based on past experience, are 30% cash and 70% credit. Credit sales are typically collected as follows: 40% in the month of sale, 50% in the month after the sale, and 10% in the second month following month of sale. On December 31, the accounts receivable balance is $69,000, of which $24,000 is from November sales. Total sales for January and February are budgeted to be $110,000 and $130,000, respectively. What are Hunt Company's budgeted cash receipts for January? Multiple Choice $79,500. $92,500. $95,800. $112,500. $125,300.
Treasure Service anticipates the following sales revenue over a five-month period: Its collection history indicates that credit sales are collected as follows: E (Click the icon to view the sales data.) A (Click the icon to view the collections data.) The company's sales are 20% cash and 80% credit. How much cash will be collected in Janua More Info 25% in the month of the sale 50% in the month after the sale Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole do 20% two months after the sale Treasure Service 5% are never collected Cash Collections Budget For the Months of January through March January Data Table Print Done Cash sales Collection of credit sales: 25% Month of sale November December January February March 50% Month after Sales revenue....... 16,100 $ 10,000 $ 15,200 $ 12,000 $ 14,200 20% Two months after Total cash collections Print Done
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Cloudy Company had the following historical collection pattern for its credit sales: 75% collected in the month of sale 12% collected in the first month after month of sale 8% collected in the second month after month of sale 3% collected in the third month after month of sale 2% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below: $ 81,000 $ 93,000 $ 105,000 $ 117,000 $ 129,000 $ 111,000 July August September October November December The estimated total cash collections by Cloudy Company during November from collection of accounts receivable is:
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Joyner Company has the following historical collection pattern for its credit sales: 60% collected in month of sale 20% collected in the first month after sale 15% collected in the second month after sale 4% collected in the third month after sale 1% uncollectible Budgeted credit sales for the last six months of the year follow. July $49,000 August 54,000 September 59,000 October 64,000 November 69,000 December 61,500 Required: -A. Calculate the estimated total cash collections during October. B. Calculate the estimated total cash collections during the year's fourth quarter. A. Total cash collections during October B. Total cash collections during the year's fourth quarter
Thornton, Inc. has budgeted sales for the months of September and October at S304,000.00 and $288,000.00, respectively. Monthly sales are 20% credit and 80% cash. Of the credit sales, 50% are collected in the month of sale, and 50% are collected in the following month. Calculate cash collections for the month of October. O A. $289,600.00 O B. $302.400.00 OC. $259,200.00 O D. $273,600.00
The following assumptions are made by a company when preparing its cash budget Invoices paid in the month after sales. Invoices paid in the second month after sale Invoices paid in the third month after sale Bad debts 50% 30% 15% 5% Invoices are issued on the last day of each month. Customers paying in the month after sale are entitled to deduct a 4% settlement discount. Credit sales values for August to November are budgeted as follows: August September October November $100 000 $120 000 $80 000 $70 000 The amount budgeted to be received from credit sales in November is ABCD ] $89 400 ] $91000 [ ] ] $100 000 $92 000