Required:(a) Prepare a schedule of budgeted cash collections for sales for each of themonths July to September.(b) Prepare a schedule of expected cash disbursements for purchases for thequarter to September 30, 2010. The management accountant at Fuller Manufacturing Company, Dean Witter, is inthe process of preparing the cash budget for the business for the quarter endingSeptember 30, 2010. Extracts from the sales and purchases budgets are as follows:CashSales onPurchases onMonthSales$45,000$60,000$38,000$47,000$51,000AccountАccount$390,000$360,000$450,000$400,000$500,000MayJune$480,000$600,000July|August|September$720,000$640,000$800,000i) An analysis of the records shows that trade receivables (accounts receivable) aresettled according to the following credit pattern, in accordance with the creditterms 5/30, n90:60% in the month of sale20% in the first month following the sale15% in the second month following the saleThe remaining 5% is expected to be uncollectible.ii) Accounts payable are settled as follows:70% in the month in which the inventory is purchased30% in the following monthThe credit terms of the suppliers - 10/30, n60.

Cash collection schedule represents the amount of cash collected by making sales.

The management accountant at Fuller Manufacturing Company, Dean Witter, is in the process of preparing the cash budget for the business for the quarter ending September 30, 2010. Extracts from the sales and purchases budgets are as follows: Cash Sales on Purchases on |Month Мay June Sales Account Account July August September $45,000 $60,000 $38,000 $47,000 $51,000 $480,000 $600,000 $720,000 $640,000 $800,000 $390,000 $360,000 $450,000 $400,000 $500,000 i) An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 5/30, n90: 60% in the month of sale 20% in the first month following the sale 15% in the second month following the sale The remaining 5% is expected to be uncollectible. ii) Accounts payable are settled as follows: 70% in the month in which the inventory is purchased 30% in the following month The credit terms of the suppliers - 10/30, ná0.

The management accountant at Fuller Manufacturing Company, Dean Witter, is in the process of preparing the cash budget for the business for the quarter ending September 30, 2010. Extracts from the sales and purchases budgets are as follows: Cash Sales on Purchases on |Month Мay June Sales Account Account July August September $45,000 $60,000 $38,000 $47,000 $51,000 $480,000 $600,000 $720,000 $640,000 $800,000 $390,000 $360,000 $450,000 $400,000 $500,000 i) An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 5/30, n90: 60% in the month of sale 20% in the first month following the sale 15% in the second month following the sale The remaining 5% is expected to be uncollectible. ii) Accounts payable are settled as follows: 70% in the month in which the inventory is purchased 30% in the following month The credit terms of the suppliers - 10/30, ná0.

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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