Tough Tillers Inc. makes tillers for small farms. Their inventory purchases budget is shown below:Sep purchases $240,000Oct purchases $196,000Nov purchases $229,00025% of purchases are paid in the month of the purchase. The remainder are paid in the next month.Operating expenses were $222,000 of which $50,000 was depreciation. Tough Tillers will declareand pay a dividend of $24,000.What should they budget for cash payments in November?Enter as a whole number, no commas and no dollar signs.Your Answer:Answer

The objective of the question is to calculate the budget for cash payments in November for Tough…

Answered: Tough Tillers Inc. makes tillers for…

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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Sound Investments, Ic., is a large retailer of stereo equipment. The controller is about to prepare the budget for the first quarter of 20x2. Past experience has indicated that 70 percent of the store's sales are cash sales. The collection experience for the sales on account is as follows: 85 percent during month of sale 10 percent during month following sale 5 percent uncollectible The total sales for December 20x1 are expected to be $203,000. The controller feels that sales in January 20x2 could range from $113,000 to $173,000. Required: 1. Demonstrate how financial planning can be used to project cash receipts in January of 20x2 for three different levels of January sales. Use the following columnar format. Total Sales in January, 20x2 113,000 2$ 143,000 %2$ 173,000 Cash receipts in January 20x2: From December sales on account From January cash sales From January sales on account Total cash receipts 8 T G K C N
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Sound Investments, Inc., is a large retailer of stereo equipment. The controller is about to prepare the budget for the first quarter of 20x2. Past experience has indicated that 70 percent of the store's sales are cash sales. The collection experience for the sales on account is as follows: 85 percent during month of sale 10 percent during month following sale 5 percent uncollectible The total sales for December 20x1 are expected to be $203,000. The controller feels that sales in January 20x2 could range from $113,000 to $173,000. Required: 1. Demonstrate how financial planning can be used to project cash receipts in January of 20x2 for three different levels of January sales. Use the following columnar format. Cash receipts in January 20x2: From December sales on account From January cash sales From January sales on account Total cash receipts Total Sales in January, 20x2 113,000 $ 143,000 $ 173,000 $ 0 $ 0 $ 0
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