The beginning balance of Accounts Receivable amounted to P 10,000 which was fully paid in April. 80%of the monthly sales computed in the budgeted sales forecast are collected in the month of sale while 20%of sales are collected the following month.Using the table below, prepare a cash collection budget for the month of April, May and June.Cash Collection BudgetAprilMayJuneTotalAccountsReceivable,beg.Collection fromMarchCollection fromАprilCollection fromМayCollection fromJuneTotal MonthlyCash Collection Imagine you are an owner of a company. Listed below are your budgeted monthly unit sales sold at P1oper unit.MarchAprilMayJuneJulyBudgetedMonthly Unit2,000.003,000.004,000.005,000.004,500.00SalesUsing the table below, prepare a sales budget for the month of April, May and June.Budgeted Sales ForecastАprilМayJuneTotalBudgetedMonthly UnitSalesUnit SellingPriceSales Budget

The beginning balance of Accounts Receivable amounted to P 10,000 which was fully paid in April. 80% of the monthly sales computed in the budgeted sales forecast are collected in the month of sale while 20% of sales are collected the following month. Using the table below, prepare a cash collection budget for the month of April, May and June. Cash Collection Budget April Мay June Total Accounts Receivable, beg Collection from March Collection from April Collection from Маy Collection from June Total Monthly Cash Collection

The beginning balance of Accounts Receivable amounted to P 10,000 which was fully paid in April. 80% of the monthly sales computed in the budgeted sales forecast are collected in the month of sale while 20% of sales are collected the following month. Using the table below, prepare a cash collection budget for the month of April, May and June. Cash Collection Budget April Мay June Total Accounts Receivable, beg Collection from March Collection from April Collection from Маy Collection from June Total Monthly Cash Collection

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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Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for lo principal and interest payments) for the first three months of next year. January February March Cash Receipts Cash payments $518,000 $ 461,500 352,000 523,000 408,500 464,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for All items excluding…
Based on the following data, prepare a cash budget (in proper form with labels) for July and August. Forecast sales May $12,000 June 15,000 July $16,000 August $12,000 Cash sales are 30% of total sales. Credit sales are collected as follows: 60% one month after the sale and 40% 2 months after the sale Accounts payable are paid 100% 2 months after the purchase Expected A/P May $5,000 June $6,000 July $7,000 August $8,000 In addition to purchases, there are utility bills of $1,500 each month Beginning cash for July is $3,800
2 Papst Company is preparing its cash budget for the month of May. The following information is available concerning its accounts receivable (based on sales made to customers on open account): $155, 000 $195, 000 $270, 000 Actual credit sales for March Actual credit sales for April Estimated credit sales for May Estimated collections in the month of sale 25% Estimated collections in the first month after the month of sale 60% Estimated collections in the second month after the month of sale 10% 5% Estimated provision for bad debts (made in the month of sale) The firm writes off all uncollectible accounts at the end of the second month after the month of sale. Required: Determine for Papst Company for the month of May: 1. The estimated cash receipts from accounts receivable collections. 2. The gross amount of accounts receivable at the end of the month (after appropriate write-off of uncollectible accounts). 3. The net amount of accounts receivable at the end of the month. 4.…
The management of Palind Ltd decide to prepare a Cash Budget for November and December. The following information is available: Sales: Cash Credit Purchases Salaries & Wages Sundry Expenses WY Actual August September October R 194 500 287 300 510 000 72 600 17 800 R 235 700 350 000 490 000 72 600 18 400 R 275 000 410 000 495 000 72 600 22 000 Additional information: 1. Cash in respect of credit sales is collected as follows: • 50% within 30 days • 30% within 60 days • 15% within 90 days • The balance is written off as irrecoverable. 2. The following discounts are allowed on sales: Budgeted 7. The cash in the bank on 31 October was R44 500. November December R 250 500 400 400 520 000 72 600 22 600 R 368 000 697 000 680 000 72 600 25 700 • 10% on cash sales • 7.5% on credit sales if accounts are settled within 30 days. 3. All salaries, wages and sundry expenses are paid in cash. 4. Sundry expenses include depreciation of R4 200 per month. 5. Seventy-five (75%) of all purchases are on…
Emerald 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 ) The company's sales are 40% cash and 60% credit O (Click the icon to view the collections data) How much cash will be collected in January? In February? In March? For the quarter in total? 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 dollar) Emerald Service Cash Collections Budget For the Months of January through March January Cash sales 6,080 Collection of credit sales 25% Month of sale 2,280 50% Month after 15% Two months after Total cash collections
Evergreen Furniture, a retailing company, is preparing the cash budget for August. The following inventory information available: Estimated payments in August for purchases in August Estimated purchases for August Estimated cost of goods sold for August Estimated payments in August for purchases in July Estimated payments in August for purchases prior to July Inventories at beginning of August Required: What are the estimated cash disbursements in August? Estimated cash disbursements 70% $ 2,444,000 2,600,000 696,000 176,000 674,000
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Rivers Company purchases merchandise on account. In general, Rivers pays 50% in the month of purchase and 50% in the following month. All payments in the month of purchase qualify for a 2% cash discount. First quarter budgeted purchases are: January $90,000 February $80,000 March $96,000 A. What are the total cash disbursements expected in February? B. What are the total cash disbursements expected in March? C. Now suppose that there is no cash discount for purchases made in the month of purchase. Now what are the total cash disbursements expected in February? In March?
Julia's Candy Co. reports the following information from its sales account and sales budget: Sales Expected Sales: O $30,000 O $82,500 O $112,500 O $120,000 May June July O $202,500 August September Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. Based on the information from Julia's, the total amount of cash expected to be received from customers in September is: -O+ 14 B % F6 D $105,000 93,000 F7 $90,000 6 110,000 120,000 F8 & F9
Ewing Company is preparing a cash budget for September. The following information on accounts receivable collections is available from past collection experience. Percent of current month’s sales collected this month 20 % Percent of prior month’s sales collected this month 57 Percent of sales two months prior to current month collected this month 12 Percent of sales three months prior to current month collected this month 8 The remaining 3 percent is not collected and is written off as bad debts. Credit sales to date are as follows. September—estimated $ 280,000 August 252,000 July 240,000 June 286,000 Required: What are the estimated cash receipts from accounts receivable collections in September?
Spartan Industries has budgeted the following information for January Cash Receipts $ 43,400 Beginning Cash Balance $ 16,400 Cash Payments $ 61,400 Desired Ending Cash Balance $ 11,400 If there is not enough cash on hand to meet the desired ending balance, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,700 increments. Interest is paid monthly on the first day of the following month. The interest rate is 1 percent per month. The company had no debt before January 1 The shortage or surplus of cash before considering cash borrowed or interest payments in January would be a: Multiple Choice $1,600 shortage $9,800 shortage.
Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash payments January $ 524,000 $ 465,300 February 412,500 353,800 March 475,000 526,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March.