stimated finished goods inventory balance at the end of July? 13. What is the estimated cost of goods sold and gross margin for July? 14. What is the estimated total selling and administrative expense for July? 15. What is the estimated net operating income for July? Connect EXERCISE 8-1 Schedule of Expected Cash Collections LO8-2 Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below- April May June Total Budgeted sales (all on account) $300,000 $500,000 $200,000 $1,000,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. Required: Using Schedule 1 as your guide, prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 1. spont 2. What is the accounts receivable balance on June 30th?
stimated finished goods inventory balance at the end of July? 13. What is the estimated cost of goods sold and gross margin for July? 14. What is the estimated total selling and administrative expense for July? 15. What is the estimated net operating income for July? Connect EXERCISE 8-1 Schedule of Expected Cash Collections LO8-2 Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below- April May June Total Budgeted sales (all on account) $300,000 $500,000 $200,000 $1,000,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. Required: Using Schedule 1 as your guide, prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 1. spont 2. What is the accounts receivable balance on June 30th?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:stimated finished goods inventory balance at the end of July?
13. What is the estimated cost of goods sold and gross margin for July?
14. What is the estimated total selling and administrative expense for July?
15. What is the estimated net operating income for July?
Connect
EXERCISE 8-1 Schedule of Expected Cash Collections LO8-2
Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur
in May of each year, as shown in the company's sales budget for the second quarter given below-
April
May
June
Total
Budgeted sales (all on account)
$300,000
$500,000 $200,000 $1,000,000
From past experience, the company has learned that 20% of a month's sales are collected in
the month of sale, another 70% are collected in the month following sale, and the remaining 10%
are collected in the second month following sale. Bad debts are negligible and can be ignored.
February sales totaled $230,000, and March sales totaled $260,000.
Required:
Using Schedule 1 as your guide, prepare a schedule of expected cash collections from sales,
by month and in total, for the second quarter.
1.
spont
2.
What is the accounts receivable balance on June 30th?
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