The following various elements relate to Whitfield, Inc.'s cash budget for April of the current year. For each item, determine the amount of cash tham a. At $28 each, unit sales are 5,000 and 6,000 for March and April, respectively. Total sales are typically 40% for cash and 60% on credit ; 30% of credi sale, with the balance collected in the following month. Uncollectible accounts are negligible. Marchsales Aprilcash sales Aprilcredit sales Cash collected in April $ $ Marchpurchases $ Aprilpurchases Cash paid in April $ . b. Merchandise purchases were $45,000 and $78,000 for March and April, respectively. Typically, 20% of total purchases are paid for in the month of balance of purchases is paid for (without discount) in the following month.

The following various elements relate to Whitfield, Inc.'s cash budget for April of the current year. For each item, determine the amount of cash tham a. At $28 each, unit sales are 5,000 and 6,000 for March and April, respectively. Total sales are typically 40% for cash and 60% on credit ; 30% of credi sale, with the balance collected in the following month. Uncollectible accounts are negligible. Marchsales Aprilcash sales Aprilcredit sales Cash collected in April $ $ Marchpurchases $ Aprilpurchases Cash paid in April $ . b. Merchandise purchases were $45,000 and $78,000 for March and April, respectively. Typically, 20% of total purchases are paid for in the month of balance of purchases is paid for (without discount) in the following month.

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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