Sales in July was US$50,000. The company's collection policy is like this, 30% in the month of sales, 60% one month after the sales, and theremaining two months after the sale. What is the amount of collection in August?Time left 0:O a. US$50,000O b. US$5000O c. US$30,000O d. US$10,000Next pageNEXT ACTIVITY>>US ACTIVITY1: Introduction to Management AccountingChapter 2: Variance analysisJump to.:.

Sales represents the revenue that a company is able to generate by selling the core business…

Time le Sales in July was US$50,000. The company's collection policy is like this, 30% in the month of sales, 60% one month after the sales, and the remaining two months after the sale. What is the amount of collection in August? O a. US$50,000 O b. US$5000 O c. US$30,000 O d. US$10,000

Time le Sales in July was US$50,000. The company's collection policy is like this, 30% in the month of sales, 60% one month after the sales, and the remaining two months after the sale. What is the amount of collection in August? O a. US$50,000 O b. US$5000 O c. US$30,000 O d. US$10,000

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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Consider the following information for a given company: Month Cash Sales Credit Sales Jan $80.000 $350,000 Feb $60,000 $200,000 Mar $50.000 $145,000 Apr $45,000 $130,000 May $55,000 $170,000 Jun $50,000 $150,000 The firm's collection pattern is as follows: 60% in the month of sale 30% one month following sale 10% two months following sale The accounts receivable balance on 1 Jan is $70,000. Of this amount, $60,000 represents uncollected Dec sales and $10,000 represents uncollected Nov sales. Required: Determine the total cash collected during Jan. (INPUT YOUR ANSWER IN THOUSANDS USING A COMMA SEPARATOR. NO ROUNDING REQUIRED. FOR EXAMPLE: 100,000)
Watt's Lighting Stores made the following sales projection for the next six months. All sales are credit sales. March April May June July August $ 42,000 48,000 37,000 46,000 54,000 56,000 Sales in January and February were $45,000 and $44,000, respectively. Experience has shown that of total sales, 10 percent are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August. Credit sales Collections: In month of sale One month after sale Watt's Lighting Stores Cash Receipts Schedule January February March April May June July August Two months after sale $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Total cash receipts
Beta Company collects 80% of a month's sales in the month of sale and 20% of sales in the following month. What are the cash collections for October? August sales: $850 September sales: $900 October sales: $1,000 $890 $860 $980 $920
Graham Potato Company has projected sales of $12,000 in September, $15,000 in October, $22,000 in November, and $18,000 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $18,500 and $11,000, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. Graham Potato Company Cash Receipts Schedule Sales Credit sales Cash sales One month after sale Two months after sale Total cash receipts September October November December
Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March $ 12,000 June $ 14,000 April 16,000 July 17,000 May 10,000 August 18,000 Sales in January and February were $13, 500 and $13,000 respectively. Experience has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August. Ed's Waterbeds Cash Receipts Schedule January February March April May June July August Sales $ $ $ $ $ $ $ $ Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts $ $ $ $ $$b. Of the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of August? How much of this is expected to be collected later? Amount…
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
Miggy Co. projects the following monthly revenues for next year: 250,000 January February March 100,000 500,000 July August September October 275,000 300,000 350,000 452,000 450,000 Аpril May 557,000 300,000 November 400,000 525,000 June December Miggy's terms are net 30 days. The company typically receives payment on 80% of sales the month following the sale and 17% is collected two months after the sale. Approximately 3% of sales are deemed bad debt. What amount represents the expected cash collection in the second calendar quarter of next year? a. 1,405,540 b. 1,293,630 c. 1,320,540 d. 1,234,250
The following sales and purchases are expected over the Four-month period from December to March Purchases Sales December OMR 30000 OMR 26000 January OMR 25000 OMR 30000 February OMR 24000 OMR 24000 March OMR 26000 OMR 28000 Additional Information: 1. Wages are paid each month of OMR 2000, which are paid in month that they are incurred 2. 30% of the Sales are on credit - and we allow one-month credit period - and 70% of the sales for immediate settlement 3. 40% of the Purchases are on credit - and 1 month credit period - and 60% of the purchases are for immediate settlement 4. The balance of cash as at 1 January was OMR 9000 If the company is preparing a budget from January to March, what will be the Closing balance of cash on March ? Select one: a. OMR 7800 b. OMR 7200 c. OMR 5800
The cash balance at the beginning of September is £ 20,000. ii. Actual sales for July and August and expected sales for September are as follows: July August September Cash sales £ 19,000 £ 29,000 £ 39,000 Sales on account £ 6,000 £ 8,000 £ 9,000 iii. Sales on account are collected over a three-month period as follows: 10% collected in the month of sale, 80% collected in the following sale, and 7% collected in the second month following sale. The remaining 3% is uncollectible.iv. Purchases of inventory will total £ 24,000 for September. 20% of month’s inventory purchases are paid for during the month of purchase. The accounts payable remaining from Augusts’ inventory purchases total £ 15,000, all of which will be paid in September. v. Selling and administrative expenses are budgeted at £ 13,000 for September. Of this amount £ 4,000 is for depreciation. vi. Equipment costing £ 18,000 will be purchased for cash during September, and dividends totalled £3,000 will be paid during the…
Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August? NOTE: Enter amounts rounded to the nearest whole dollar. Cash sales Cash for collections the month of sale Cash for collections the month after sale Cash for collections two months after sale TOTAL cash receipts S S LA
Monthly sales for the Garden Centre are shown in the table below. Garden CentreSales Forecast Month Sales January $20,000 February $22,000 March $26,000 April $30,000 May $35,000 June $40,000 The Garden Centre purchases inventory two months in advance. They pay for 50% of the merchandise the month after the purchase, and the other 50% two months after the purchase. The Garden Centre’s gross margin is 40%. What are the Garden Centre’s payments to suppliers in March? Please avoid image based solutions thank you
eBook Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $71,000 in June, $63,000 in July, and $93,000 in August? Cash collected ( Previous Next Check My Work

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