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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The Overland Company is preparing its cash budget for the month of June. The following information is available concerning its accounts receivable: $304,000 229,000 Estimated credit sales for June Actual credit sales for May Estimated collections in June for credit sales in June Estimated collections in June for credit sales in May Estimated collections in June for credit sales prior to May 25% 65% $ 22,000 16,000 14,000 Estimated write-offs in June for uncollectible credit sales Estimated provision for bad debts in June for credit sales in June What are the estimated cash receipts from accounts receivable collections in June?
Justin Company's budget includes the following credit sales for the current year: September, $41,000; October, $52,000; November, $46,000; December, $48,000. Credit sales are collected as follows: 20% in the month of sale, 55% in the first month after sale, 22% in the second month after sale, and 3% is uncollectible. How much cash can Justin expect to collect in November as a result of current and past credit sales? Multiple Choice $35,420. $46,820. $49,620. $44,220. $46,000.
The following data are from the budget of Ritewell Publishers. Half the company's sales are transacted on a cash basis. The other half are paid for with a 1-month delay. The company pays all of its credit purchases with a 1-month delay. Credit purchases in January were $140, and total sales in January were $290. TT February March $ 420 April Total sales $ 440 $ 400 125 135 115 Cash purchases Credit purchases Labor and administrative purchases Taxes, interest, and dividends Capital expenditures 95 85 95 85 85 85 65 65 65 210 Complete the following cash budget. (Leave no cells blank. Enter '0' when necessary. Negative amounts should be indicated by a minus sign.) February March Aprit Sources of cash Collections on current sales Collections on amounts receivable Total sources of cash 0 $ Uses of cash Payments of accounts payable Cash purchases o search
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Markham Company has completed its sales budget for the first quarter of Year 2. Projected credit sales for the first four months of the year are shown below: January February March April $ 20,000 $ 26,000 $ 35,000 $ 38,000 The company's past records show collection of credit sales as follows: 40% in the month of sale and the balance in the following month. The total cash collection from receivables in March is expected to be: Multiple Choice $29,600. $22,100. $31,850. $35,000.
Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $34,000 and $50,000, respectively. It also expects credit sales of $60,000 and $70,000, respectively. The companyvexpects to collect 60% of its credit sales in the month of the sale, 35% in the following month, and 5% is deemed uncollectible. What amount of cash collections would appear in the company's cash budget for the first month
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Kingbird needs to calculate the company’s expected cash receipts for the upcoming month to determine whether additional financing is needed. Typically, the company’s sales consist of 40% cash sales and 60% credit sales. Of the credit sales, 55% are collected in the same month, and 42% are collected in the following month. The remainder is generally uncollected. Total budgeted sales in June are $136,000 and in July are $186,000. What amount of total cash receipts would Kingbird expect to collect in July? Total cash receipts $enter the total cash receipts in dollars