The Gingham Company's budgeted income statement reflects the following amounts:SalesPurchases$ 120,000$ 78,000110,00066,000125,00081,25084,500JanuaryFebruaryMarchApril130,000Sales are collected 50% in the month of sale, 30% the month following sale, and 19% in the second month following.sale. 1 percent of sales is uncollectible and expensed at the end of the year.CashGingham pays for all purchases in the month following purchase and takes advantage of a 3% discount. The followingbalances are as of January 1:Expenses$ 24,00024,20027,00028,600Accounts receivable *Accounts payable$ 88,00058,00072,000*Of this balance, $35,000 will be collected in January and the remaining amount will be collected in February.The monthly expense figures include $5,000 of depreciation. The expenses are paid in the month incurred.1) Gingham's expected cash balance at the end of January is:2) Gingham's budgeted cash receipts in February are:

A cash budget is prepared after preparing a schedule for cash receipts and cash payments. It…

Answered: The Gingham Company's budgeted income…

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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All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted sales data for the company: Total sales January $50,000 O $24,000 O $37,000 O $41,000 O $51,000 February $60,000 March $40,000 What is the amount of cash that should be collected in March? April $30,000
Meredith Company has budgeted sales for the upcoming months as follows: $ 452,000 $ 467,000 $ 498,000 $ 516,000 $ 503,000 $ April Мay June July August September $ 478,000 40% of the sales are credit sales, the remainder are made in cash. Credit sales are collected 50% in the month of sale, 35% in the month following the sale, and 8% in the second month following the sale. a. Compute Meredith Company's cash receipts for June. (Do not round intermediate calculations.) Cash Receipts b. Compute Meredith Company's cash receipts for July. (Do not round intermediate calculations.) Cash Receipts c. Compute Meredith Company's cash receipts for August. (Do not round intermediate calculations.) Cash Receipts
Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $245,000, $302,000, and $402,000, respectively, for September, October, and November. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the The cash collections expected in October are O & $267,120 O & $218120 Oc $278,520 O d. $289.175
Ivanhoe Design provided the following budgeted information for April through July: April May June July Projected sales $112320 $132840 $124200 $142560 Projected merchandise purchases $88560 $99360 $84240 $71280 The cash balance on June 1 is $12960. The company pays 40% of merchandise purchases in the month purchased and 60% in the following month. General operating expenses are budgeted to be $33480 per month of which depreciation is $3240 of this amount. Management pays operating expenses in the month incurred. The company makes loan payments of $4320 per month of which $648 is interest and the remainder is principal. How much are budgeted cash disbursements for June? $111024. $127872. $93312. $68256.
Riverbed Inc. provided the following information: April Projected merchandise purchases $92,500 Calculate budgeted cash disbursements for May. May $82,000 Total budgeted cash disbursements $ June Riverbed pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month. General operating expenses are budgeted to be $34,500 per month of which depreciation is $3,400 of this amount. Riverbed pays operating expenses in the month incurred. Riverbed makes loan payments of $5,000 per month of which $550 is interest and the remainder is principal. $69,000
The following information is available to assist you in preparing a company's cash budget. a. The cash balance on July 1 is $41,000. b. Actual sales for May and June and expected sales for July are as follows: May $ 68,400 $ 87,400 $ 95,800 $ 415,000 $ 614,000 $ 692,000 June July Cash sales Sales on account Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected In the second month following sale. The remaining 2% is uncollectible. C. Purchases of inventory will total $376,000 for July. Thirty percent of a month's Inventory purchases are paid during the month of purchase. The accounts payable remaining from June's inventory purchases total $174,500, all of which will be paid in July. d. Selling and administrative expenses are budgeted at $452,000 for July. Of this amount, $63,500 is for depreciation. e. A new web server for the Marketing Department costing $86,500 will be…
Woodpecker Co. has $292,000 in accounts receivable on January 1. Budgeted sales for January are $979,000. 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 Oa. $1,367,200 Ob. $1,075,200 Oc. $645,120 Od. $860,160
A company makes collections on sales according to the following schedule: 50% in month of sale 45% in month following sale 5% in second month following sale The following sales have been budgeted: April May June Sales $180,000 $190,000 $180,000 Budgeted cash collections in June would be:
Hess Company has $15,000 in cash on hand on January 1 and has collected the following budget data: January February Sales $1,360,000 $640,000 Cash receipts from customers 851,850 871,300 Cash payments for merchandise inventory 561,700 532,416 Assume Hess has cash payments for selling and administrative expenses including salaries of $30,000 plus commissions of 11% of sales, all paid in the month of sale. The company requires a minimum cash balance of $12,500. Prepare a cash budget for January. Hess Company Cash Budget Two Months Ended January 31 and February 28 January Beginning cash balance Cash receipts Cash available Cash payments: Purchases of merchandise inventory Selling and administrative expenses Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess…

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