The following is the sales budget for Yellowhead Inc. for the first quarter of 2021:January February$212,000 $232,000March$255,000SalesCredit sales are collected as follows: 70% in the month of the sale, 15% In the month after the sale, and 15% in the second month afterthe sale.The accounts receivable balance at the end of the previous quarter was $96,000 ($66,000 of which was uncollected Decembersales),a. Calculate the sales for November. (Omit "$" sign in your response.)November sales$b. Calculate the sales for December. (Round the final answer to 2 decimal places. Omit "$" sign in your response.)$December salesc. Calculate the cash collections from sales for each month from January through March. (Do not round intermediate calculations.Round the final answers to 2 decimal places. Omit "$" sign in your response.)JanuaryFebruaryMarchCash collections$$$

Collections :in the month of sale = 70%after 1 month of sale = 15%after 2 month of sale = 15%Sales…

Answered: The following is the sales budget for…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

UIO Company makes all of its sales on account. UIOcollects its account as follows: 20% in the month of sale, 70% in the month following sale, and 10% in the second month following sale. UIO budget sales for the first quarter of the year as follows: January P176,000; February P168,000; and March P200,000. The accounts receivable balance on January 1 was P110,000 for sales made in November and December of the previous year. What is UIO's budgeted balance of accounts receivable at the end of March?
Bramble Company expects to have a cash balance of $43,200 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $81,600, February $144,000. Payments for direct materials: January $48,000, February $72,000. Direct labor: January $28,800, February $43,200. Wages are paid in the month they are incurred. Manufacturing overhead: January $20,160, February $24,000. These costs include depreciation of $1,440 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $14,400, February $19,200. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $11.520 in cash. Bramble Company has a line of credit at a local bank that enables it to borrow up to $24,000. The company wants to maintain a minimum monthly cash balance of $19,200. Prepare a cash budget for January and February.
WILDHORSE COMPANY Cash Budget $ S January $ Febru
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business-September, October, and November-are $241,000, $314,000, and $415,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in November from accounts receivable are projected to be: C a. $331,632 Ob. $232,400 O c. $188,440 Od. $276,360
Grit Company was formed on May 1, 2023. During May, 2023, the company reported sales on account of $750,000. During June, 2023, Grit Company reportes sales on account of $800,000. Anticipated collections patterns of accounts receivable indicate 40% will be collected in the month of sale, 10% in the next month, and the remainder in the following month. How much will appear on the cash receipts and disbursements budget prepared for June, 2023? $620,000 O $465,000 O $545,000 O $540,000
Woodpecker Co. has $293,000 in accounts receivable on January 1. Budgeted sales for January are $977,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are a. $644,760 Ob. $1,367,600 Oc. $859,680 Od. $1,074,600
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
The company pays for its purchases within 10 days of purchase, so assume that one-third of the purchases of any month are due and paid for in the following month. The cost of the merchandise purchased is $10 per case. At the end of each month, it is desired to have an inventory equal in units to 75% of the following month's sales in units. Exclusive of bad debts, total budgeted selling and general administrative expenses for the fiscal year are estimated at$80,600, of which $19,000 is fixed expense (which includes a $5,200 annual depreciation charge). this is incurred fixed expenses uniformly throughout the year. The balance of the selling and general administrative expenses varies with sales. Expenses are paid as incurredRequirementl.
A company requires a minimum $12,400 cash balance at each month-end. If necessary, a loan is taken to meet this requirement at a cost of 1% interest per month (paid at the end of each month). Any preliminary cash balance above $12,400 is used to repay loans at month-end. The cash balance on March 1 is $12,400, and the company has no outstanding loans. Budgeted cash receipts from sales are: March, $26,000; April, $32,400; and May, $41,000. Budgeted cash payments (excluding loan or interest payments) are: March, $30,000; April, $30,200; and May, $32,400. Required: Prepare a cash budget for March, April, and May. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar. Beginning cash balance Add: Cash receipts from sales Total cash available Add: Cash receipts from sales Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance,…
Graham Company projects the following sales for the first three months of the year: $10,600 in January: $14,600 in February; and $16,300 in March. The company expects 80% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar. Read the requirements. Requirement 1. Prepare a schedule of cash receipts for Graham for January, February, and March. What is the balance in Accounts Receivable on March 31? (If an input field is not used, leave the input field empty. Do not enter a zero.) Cash Receipts from Customers Total sales Cash Receipts from Customers: Accounts Receivable balance, January 1 January-Cash sales January-Credit sales, collection of January sales in January January-Credit sales, collection of January sales in February February-Cash sales February-Credit sales, collection of February sales in…
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. January February March Cash Receipts $ 521,000 410,500 480,000 Cash payments $ 467,800 357,300 528,000 Kayak requires a minimum cash balance of $30,000 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 $30,000 is used to repay loans at month-end. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for January, February, and March. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Beginning cash balance Add: Cash receipts Total cash available KAYAK COMPANY Cash Budget January $ 30,000…

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS