The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales $ 30,000 $ 130,000 $ 35,000 $ 150,000 $ 38,000 $ 110,000 $ 33,000 $ 118,000. $ 43,000 $ 180,000 $ 60,000 $ 120,000 January February March April May June The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following i information has been assembled: Collections on sales: 50% in month of sale 30% in month following sale 20% in second month following sale The accounts receivable balance on January 1 of the current year was $76,000, of which $58.000 represents uncollected December sales and $18,000 represents uncollected November sales. What is the budgeted accounts receivable balance on May 31?
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales $ 30,000 $ 130,000 $ 35,000 $ 150,000 $ 38,000 $ 110,000 $ 33,000 $ 118,000. $ 43,000 $ 180,000 $ 60,000 $ 120,000 January February March April May June The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following i information has been assembled: Collections on sales: 50% in month of sale 30% in month following sale 20% in second month following sale The accounts receivable balance on January 1 of the current year was $76,000, of which $58.000 represents uncollected December sales and $18,000 represents uncollected November sales. What is the budgeted accounts receivable balance on May 31?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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H1.
Account
Transcribed Image Text:The LaGrange Corporation had the following budgeted sales for the first half of the current year:
Cash Sales Credit Sales
$ 30,000
$ 130,000
$ 35,000
$ 150,000
$ 110,000
$ 38,000
33,000
$ 118,000.
$
$ 43,000
$ 180,000
$ 60,000
$ 120,000
January
February
March
April
May
June
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following i
information has been assembled:
Collections on sales:
50% in month of sale
30% in month following sale
20% in second month following sale
The accounts receivable balance on January 1 of the current year was $76,000, of which $58.000 represents uncollected December sales and $18,000
represents uncollected November sales.
What is the budgeted accounts receivable balance on May 31?
Transcribed Image Text:What is the budgeted accounts receivable balance on May 31?
Multiple Choice
$209,200
$113,600
$90,000
$95,600
✔
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