# 2The table below highlights Deluna Company's expected salesMonthRMJanuary100,000February120,000March110,000The collection on sales for Deluna Company is structured in the following manner:• In the month of sale - 30 percent• One-month after-sale - 60 percent• Two months after-sale - 8 percent• Uncollectible bad debt - 2 percentCompute the total cash receipts in March:

Jan sale = 100,000 Feb sale = 120000 March sale = 110000 Receipt in the month of sale = 30% One…

Answered: The table below highlights Deluna…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $127,000 November 159,000 December 232,000 The Accounts Receivable balance on September 30 was $85,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar. OfficeMart Inc.Schedule of Cash Collections from SalesFor the Three Months Ending December 31 October November December Receipts from cash sales: Cash sales $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 September sales on account:…
A company is preparing its cash buget for the month of May. Below is A/R information: Actual credit sale for March $130,000 Actual credit sale for April $160,000 Estimated credit sales for May $210,000 Estimated collections in the month of sale 25% Estimated collections in the first month after the month of sale 60% Estimated collections in the second month after the month of sale 10% Estimated provision of bad debts (made in month of sale) 5% ** Firm writes off all UNCOLLECTIBLE account receievables at the end of second month after the month of sale. Required: For the month of May, calculate the following: 1. Estimated cash receipts from account recievable collections. 2. The gross amount of A/R at the end of the month (after appropriate write off of uncollectiable amounts). 3. The net amount of A/R at the end of the month 4. Recalculate the requirement 1 & 2 under the assumption that estimated collections in the month of sale equal 60% and in the first…
Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Month Total sales Total cash receipts in Month 4 will be: Multiple Choice $27,230. $47,900. 1 2 3 $ 60,000 $ 70,000 $50,000 $30,000 £36 230
Question The following information is from Teas Window’s financial records. The company buys its raw material on account and pays: 50% of accounts payable during the month of purchase 40% in the first month after purchase 10% in the second month after purchase Month Purchases april 80,000 may 92,000 june 93,000 july 97,000 Compute the estimated total cash disbursements during July. Show your calculations
Forecasted cash receipts and expenditure for the period August to October are as follows: Cash Receipts Expenditure $ $ 60,000 58,000 July August September October 54000 68,000 90,000 30,000 44,000 Additional information provided: ✓ Expenditure for the period July to October includes monthly depreciation of $5,000. ✓ Payment for the cash related expenditure would be 40% in the month of purchase, the balance being paid the following month. The company intends to sell equipment valued at $25,000 in September. Insurance of $25,000 is payable in December. Opening cash balance as at August 1, $18,800. Required: Prepare a monthly Cash Budget for the period August to October 2021.
Star Company was organized on August 1 of the current year. Projected sales for the next three months are as follows: August $250,000 September 200,000 October 275,000 The company expects to sell 50% of its merchandise for cash. Of the sales on credit, 30% are expected to be collected in the month of the sale and the remainder in the following month. What is Star Company expected cash collection for September?
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customer while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remainim 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October November December $109,000 136,000 199,000 The Accounts Receivable balance on September 30 was $73,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dolla OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 November Receipts from cash sales: Cash sales September sales on account: Collected in October October sales on account: Collected in October Collected in November November sales on account: October…
The management of Vuti has supplied the following sales amounts for the next five months: January February March April May R60 000 R75 000 R55 000 R65 000 R50 000 Additional information: • Off all sales 35% are cash sales based in value. • Of credit sales 50% is collected within the month of sales. Two-thirds of the credit sales collected within the month of sales receives 2% discount. A further 30% of credit sales is collected in the following month; and the remaining credit sales is collected in the month thereafter. Bad debts amounts to 3% of the credit sales. Required: Prepare a debtor's collection schedule that clearly shows how credit sales for the five months will be collected. NB: Round off calculations to two decimal places and the final amount to the nearest value.
Top Sdn Bhd had cash of RM13,000 on hand together with trade debtors outstanding balance of RM55,000 as at January 1. During the year, the company expected the following sales to customers by quarter, with collection terms of 50% in cash and 50% in credit receivable in the next quarter: First Second Third Fourth Sales (RM) 110,000 245,000 122,400 149,600 Direct materials purchases in metric tons (MT) costing RM 50.00 per MT payable in the same quarter are as follows: First Second Third Fourth Direct Materials Purchases (MT) 1,300 1,500 1,100 1,000 The production budget showed the following unit production by quarter with an average labour wage rate of RM40.00 payable in the same quarter: First Second Third Fourth Units to be produced 1,500 2,000 1,700 1,500 Top Sdu Bhd planned to pay dividends of RM10,000 per quarter during the year. In July, a new equipment costing RM60,000 will be purchased. An additional cost of RM16,000 was planned for its installation during the fourth quarter.…
You collect 75% of a month's sales in the month of the sale and 25% of sales in the following month. May sales June sales July sales O $105 O $35 $120 Compute cash inflows for June. $135 $140 $100 not enough information, because sales revenue differs
Pardee Company makes 30% of its sales for cash and 70% on account. 60% of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Month 1 2 3 4 Total sales $78,000 $80,000 $68,000 $48,000 Total cash receipts in Month 4 will be: A. 38,780 B.68,000 C.53,180 D.50,600
The table contains the Sales estimates for the next year. The Purchases are 55% of Sales. Purchases are paid in the following month. The administrative expenses of $11,550 are paid each month Tax expenses of $16,458 are paid in March, June, September, and December each year. Rent expenses of $47,735 are paid in June and December. What is the cash outflow for March? Month Sales $ Month Sales $ Jan 87,400 July 21,931 Feb 89,751 Aug 78,038 Mar 78,038 Sep 87,400 Apr 21,931 Oct 78,038 May 87,400 Nov 89,751 June 89,751 Dec 21,931

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