The information in the following table is from a company's sales budget Expected sales April May June $ 96,000 116,000 126,000 Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be recerved from customers in June OAS118,500 O $31,500 OC5213,000 005126,000 O $87,000

The information in the following table is from a company's sales budget Expected sales April May June $ 96,000 116,000 126,000 Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be recerved from customers in June OAS118,500 O $31,500 OC5213,000 005126,000 O $87,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
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Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?
Subject: accounting
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Pacific Place has developed the following sales forecast for the following months. Month Sales May $500,000 June $650,000 July $380,000 August $300,000 The collection policy for customers is: 40 percent in the month of sale 60 percent in the following month after sale How much is the expected total cash collections from customers in June? Multiple Choice $610,000 $260,000 $590,000 $560,000 $300,000
A company’s sales on account for the coming months are as follows: May $120,000 June $126,000 July $132,300 The company finds that typically 70 percent of a month’s credit sales are paid in the month of sale, 20 percent are paid the next month, and 10 percent are paid in the second month after sales. Expected cash receipts in July are budgeted at what amount?
The following are the total sales of Top Class Ltd for the past three months of 2021Month April May JuneTotal Sales R900 000 R700 000 R500 000The budgeted sales figures for the next three months are expected as followsMonth July August SeptemberTotal Sales R825 000 R760 000 R920 000Additional information1) 40% of all sales are made in cash.2) Credit sales for October 2021 are expected to be R450 000.3) Debtors are collected as follows.• 15% of outstanding amounts are collected during the month following the month of sale(i.e.: 30 days). A discount of 4,5% is offered for early settlement of accounts.• 60% is collected in the subsequent month (i.e.: 60 days).• 20% is collected in the subsequent month (i.e.: 90 days).• The balance is irrecoverable and needs to be written off.REQUIRED:Prepare a schedule of forecasted receipts from customers (cash and credit) for the period 1 July 2021to 31 October 2021.Show all workingsRound to the nearest Rand