Thornton Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty salescompany that sells laser pointers over the Internet. Thornton expects sales in January year 1 to total $300,000 and toIncrease 15 percent per month in February and March. All sales are on account. Thornton expects to collect 66percent of accounts receivable in the month of sale, 24 percent in the month following the sale, and 10 percent in thesecond month following the sale.Requireda. Prepare a sales budget for the first quarter of year 1.b. Determine the amount of sales revenue Thornton will report on the year 1 first quarterly pro forma Incomestatement.c. Prepare a cash receipts schedule for the first quarter of year 1.d. Determine the amount of accounts receivable as of March 31, year 1.Complete this question by entering your answers in the tabs below.Required A Required B Required C Required DPrepare a sales budget for the first quarter of year 1.Sales BudgetSales on accountJanuaryFebruaryMarch< Required ARequired B >

Detailed explanation:a. Sales budget :sales budget shows the sales expected to be generated during…

Answered: Thornton Pointers Corporation expects…

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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On July 1 Wiggins Associates enters into a contract to provide consulting services to Pennsylvania University (PU). The contract is anticipated to last four months and is intended to achieve significant cost savings at the university. The contract stipulates that PU will pay Wiggins $30.000 at the end of each month, and, if total cost savings reach a specific target. PU will pay an additional $25,000 to Wiggins at the end of the contract Wiggins estimates a 80% chance that cost savings will reach the target Assume that Wiggins estimates uncertain consideration as the most likely amount. Required: Do the following for Wiggins a. Prepare the journal entry on July 31 to record the first month of revenue under the contract b. Assuming total cost savings exceed the target, prepare the journal entry, if any, on October 31 to record receipt of the $25,000 bonus ignore the normal October payment of $30.0001 c. Assuming total cost savings do not reach the target, prepare the journal entry, if…
Bha
Neat Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,009,000 in September, $2,250,000 in October, $2,378,000 in November, and $2,560,000 in December. Neat Logos sets its prices to earn an average 30% gross profit on sales revenue. The company does not want inventory to fall below $440,000 plus 10% of the next month's cost of goods sold. Prepare a cost of goods sold, inventory, and purchases budget for the months of October and November.
In the coming year, Urayse, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $11.25 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows Budgeted sales units 1st Quarter: 25,000 2nd Quarter: 40,000 Prepare Urayse, Inc.'s, cash receipts budget for the coming year. 3rd Quarter:50,000 4th Quarter: 80,000
Belvedere Bricks manufactures bricks for the construction industry. It estimates that in June, it will sell 70,000 bricks at a retail price of $6.40 per brick. All sales are cash sales. Each brick costs $4.40 to produce. In addition, Belvedere Bricks estimates it will pay in cash $19,000 of general and administrative expenses. The opening cash balance on 1 June is $48,000.Calculate the ending cash balance for Belvedere Brick's cash budget for the month of June. Group of answer choices $121,000 $73,000 $140,000 $169,000 None of the other options
Alpesh
Shadee Corporation expects to sell 630 sun shades in May and 420 in June. Each shades sells for $18. Shadee's beginning and ending finished goods inventories for May are 85 and 60 shades, respectively. Ending finished goods inventory for June will be 55 shades. It expects the following unit sales for the third quarter. July August September 530 480 440 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 38 percent is collected during the following month, and 10 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. Total Cash Receipts August September
Benson Company, which sells electric razors, had $300,000 of cost of goods sold during the month of June. The company projects a 6 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $19,000, and the desired ending inventory balance for July is $20,000. Benson pays cash to settle 75 percent of its purchases on account during the month of purchase and pays the remaining 25 percent in the month following the purchase. The accounts payable balance as of June 30 was $34,000. Required a. Determine the amount of purchases budgeted for July. b. Determine the amount of cash payments budgeted for inventory purchases in July. a. Budgeted purchases b. Cash payments
Accounting Question
In the coming year, Concord, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive- motion injuries. The brace will be sold for $13.00 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30% in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales units 29,000 41,000 57,000 77,000 Prepare Concord, Inc's cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Round "Budgeted sale price" and "Cash Receipts Budgets" answers to 2 decimal places, eg. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)
Dick's Draperies has gross sales $15,000 per month, half of which are on credit (paid with 30 days). Monthly expenses are as follows: wages, $3,000; utilities and rent, $2,000; advertising, $300; and miscellaneous, $500, inventory is purchased every three months and totals $30,000 for each order. Yearly expenses paid for in advance are insurance of $1,000 and a rent deposit of $700. Prepare a six-month cash flow statement for Dick's Draperies. What advice would you give this business based on the cash flow statement?
69) Western Company expects the following credit sales for the first five months of the year: January, $43,000; February, $58,000; March, $48,000; April, $54,000, May $58,000. Experience has shown that payment for the credit sales is received as follows: 60% in the month of sale, 25% in the first month after sale, 10% in the second month after sale, and the remainder is uncollectible. How much cash can Western Company expect to collect in March as a result of credit sales (current and past)? A) $28,800. B) $42,600. C) $48,000. D) $47,600. E) $41,100.

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