The Cash balance on Jan 01 of the Cowan Company is $ 5000. Sales and purchases for the first four months are expected as follows: Jan April $63,000 $14,000 Feb Mar Est Sales $65,000 $12,500 $54,000 $16,500 $66,000 $13,000 Est Purchases On Jan 01, uncollected accounts for months of Nov and Dec of the previous year are $13,500 and $39,150 respectively. Collection from customer follow this pattern: 55% in same month of sales, 35% in following month, 9% in next months and 1% becomes uncollectible. Materials purchased for December were $ 10,000. Purchases are usually paid 30% in same month and remaining by the 10th of the month following the month of purchases. Other cash expenditures of $35,000 are forecasted each month. Compute the Cash Collection during the months of February, Cash balance on Feb 01 te Window and on Feb 28. meet.google.com is sharing a window. Stop sharing Hide

The Cash balance on Jan 01 of the Cowan Company is $ 5000. Sales and purchases for the first four months are expected as follows: Jan April $63,000 $14,000 Feb Mar Est Sales $65,000 $12,500 $54,000 $16,500 $66,000 $13,000 Est Purchases On Jan 01, uncollected accounts for months of Nov and Dec of the previous year are $13,500 and $39,150 respectively. Collection from customer follow this pattern: 55% in same month of sales, 35% in following month, 9% in next months and 1% becomes uncollectible. Materials purchased for December were $ 10,000. Purchases are usually paid 30% in same month and remaining by the 10th of the month following the month of purchases. Other cash expenditures of $35,000 are forecasted each month. Compute the Cash Collection during the months of February, Cash balance on Feb 01 te Window and on Feb 28. meet.google.com is sharing a window. Stop sharing Hide

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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