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 that Whitfield should receive or pay in April. a. At $31 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 credit sales are collected in the month of sale, with the balance collected in the following month. Uncollectible accounts are negligible. Marchsales Answer   Aprilcash sales Answer   Aprilcredit sales Answer   Cash collected in April Answer     b. Merchandise purchases were $48,000 and $81,000 for March and April, respectively. Typically, 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month. Marchpurchases Answer   Aprilpurchases Answer   Cash paid in April Answer     c. Fixed administrative expenses, which total $14,000 per month, are paid in the month incurred. Variable administrative expenses amount to 20% of total monthly sales revenue, one-half of which is paid in the month incurred, with the balance paid in the following month. April fixed expenses Answer   March variable expenses Answer   April variable expenses Answer   Cash paid in April Answer

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 that Whitfield should receive or pay in April.

a. At $31 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 credit sales are collected in the month of sale, with the balance collected in the following month. Uncollectible accounts are negligible.

Marchsales Answer
 
Aprilcash sales Answer
 
Aprilcredit sales Answer
 
Cash collected in April Answer
 

 

b. Merchandise purchases were $48,000 and $81,000 for March and April, respectively. Typically, 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month.

Marchpurchases Answer
 
Aprilpurchases Answer
 
Cash paid in April Answer
 

 

c. Fixed administrative expenses, which total $14,000 per month, are paid in the month incurred. Variable administrative expenses amount to 20% of total monthly sales revenue, one-half of which is paid in the month incurred, with the balance paid in the following month.

April fixed expenses Answer
 
March variable expenses Answer
 
April variable expenses Answer
 
Cash paid in April Answer
 
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