The following budgeted information is collected for a merchandising company: • Budgeted sales (all on credit) for November, December, and January are $250,000, $220,000, and $200,000, respectively. Cash collections of sales are expected to be 75% in the month of sale and 23% in the month following the sale. • The remainder of the sales is expected to be uncollectible. · The cost of goods sold is always 65% of sales. · Each month's ending inventory equals 20% of next month's cost of goods sold. • 40% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month. • Monthly selling and administrative expenses that are paid in cash in the month incurred total $20,500. • Monthly depreciation expense is $20,000. • Dividends of $5,000 to be declared in December and paid in Janauary. Use the above information to answer the following FIVE questions. The expected cash collections from customers in December are:

The following budgeted information is collected for a merchandising company: • Budgeted sales (all on credit) for November, December, and January are $250,000, $220,000, and $200,000, respectively. Cash collections of sales are expected to be 75% in the month of sale and 23% in the month following the sale. • The remainder of the sales is expected to be uncollectible. · The cost of goods sold is always 65% of sales. · Each month's ending inventory equals 20% of next month's cost of goods sold. • 40% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month. • Monthly selling and administrative expenses that are paid in cash in the month incurred total $20,500. • Monthly depreciation expense is $20,000. • Dividends of $5,000 to be declared in December and paid in Janauary. Use the above information to answer the following FIVE questions. The expected cash collections from customers in December are:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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: Line Item Description Sales September October November $103,000 $122,000 $166,000 Manufacturing costs 43,000 52,000 60,000 Selling and administrative expenses Capital expenditures 36,000 37,000 63,000 40,000 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 $10,000 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. Current assets as of…
The selling and administrative expense budget of Garney Corporation is based on the number of units sold, which are budgeted to be 4,500 units in October. The variable selling and administrative expense is $6.50 per unit. The budgeted fixed selling and administrative expense is $28,080 per month, which includes depreciation of $11,520. The remainder of the fixed selling and administrative expense represents current cash flows. Required: Prepare the selling and administrative expense budget for October. Note: Do not round your intermediate calculations. Round your final answers to the nearest whole number. Fixed selling and administrative expense Total selling and administrative expense Cash disbursements for selling and administrative expenses October S 0 0
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:
Prepare a budgeted balance sheet at March 31 using the following information from Zimmer Company. a. The cash budget for March shows an ending loan balance of $20,000 and an ending cash balance of $75,000. b. The sales budget for March shows sales of $140,000. Accounts receivable at the end of March are budgeted to be 60% of March sales. c. The merchandise purchases budget shows that $91,000 in merchandise will be purchased on credit in March. Purchases on credit are paid 100% in the month following the purchase. d. Ending merchandise inventory for March is budgeted to be 800 units at a cost of $35 each. e. Income taxes payable of $28,000 are budgeted at the end of March. f. Accounting records at the end of March show budgeted equipment of $82,000 with accumulated depreciation of $35,000. g. Common stock of $35,000 and retained earnings of $60,000 are budgeted at the end of March. ZIMMER COMPANY Budgeted Balance Sheet As of March 31 $ 0 0 0
Wala Incorporated bases its selling and administrative expense budget on the number of units sold. The variable selling and administrative expense is $3.70 per unit. The budgeted fixed selling and administrative expense is $30,360 per month, which includes depreciation of $3,630. The remainder of the fixed selling and administrative expense represents current cash flows. The sales budget shows 3,100 units are planned to be sold in July. Required: Prepare the selling and administrative expense budget for July.
S ABC Company's raw materials purchases for June, July, and August are budgeted at $39,000, $29,000, and $54,000, respectively. Based on past experience, ABC expects that 70% of a month's raw material purchases will be paid in the month of purchase and 30% in the month following the purchase. Required: Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August. Budgeted raw material purchases August cash payments: Current month's purchases Prior month's purchases Total cash payments June July August $ 0
1. Prepare a budgeted income statement for the month ended July 31st. Use an absorption format. a. Calculate the estimated operating cycle for the month of July. (Hint: Use 30 days in the numerator to calculate the average collection period and the average sales period.)
a) $18,400 b) $101,600 c) $19,600 d) $16,800
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
XYZ Company is preparing its budgeted balance sheet. The budgeted selling price per unit is $45. Budgeted unit sales for July. August, September, October and November are 1,400 units, 2.100 units, 3,400 un 2.700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month following sale. The budgeted accounts receivable balance at the end of September is closest to: Select one: O a. $96,750 O b. None of the given answers O c $154,000 O d. $140,000 O e. $126.000
Capstone Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale. If sales on account are budgeted to be $399,000 for September and $319,000 for October, what are the budgeted cash receipts from sales on account for October?$fill in the blank 1