Triumph Company budgeted sales on account of P120,000 for July; P211,000 for August; and P198,000 for September. Collection experience indicates that 60% of the budgeted sales will be collected the month after the sale, 36% will be collected the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be budgeted for September would be 1. P 169,800 2. P 147,960 3. P 197,880 4. P 194,760 O 2 4. 3,

Triumph Company budgeted sales on account of P120,000 for July; P211,000 for August; and P198,000 for September. Collection experience indicates that 60% of the budgeted sales will be collected the month after the sale, 36% will be collected the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be budgeted for September would be 1. P 169,800 2. P 147,960 3. P 197,880 4. P 194,760 O 2 4. 3,

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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Miller Corporation has the following sales budget for the third quarter of 2021: Month Sales July $400,000 August $320,000 September $500,000 Historically, the following trend has been established regarding cash collection of sales: 60 percent of sales are paid in month of sale 35 percent of sales are paid in month following the sale 5 percent of sales are uncollectible and are written off in the month following the sale The expected total cash receipts for the month of September is: A. $300,000. B. $25,000. C. $112,000. D. $412,000.
The Lowville Company has budgeted the following data for November: • Sales of $1,728,300, all in cash. • A cash balance on November 1 of $72,000. • Cash disbursements (other than interest) during November of $1,740,000. • A minimum cash balance of $90,000 at the end of each month. The company has 2% open line of credit for $100,000. All borrowing will take place at the beginning of the month. The November interest will be paid in cash when repayment is made. The excess (deficiency) of cash available over disbursements for November will be: A. $(11,700) B. $ (29,700) C. $60,300 D. $72,000 1. 2. The amount of cash needed to be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance is: A. $11,700 B. $18,000 C. $29,700 D. $30,000 The minimum cash balance the Lowville Company should have in order to make both repayment and interest payment in December should be closest to: A. $18,060 B. $29,800 C. $90,600 D. $119,800
Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,800 units are planned to be sold in March. The variable selling and administrative expense is $4.30 per unit. The budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2.700 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: Multple Choice $32,920 $7740 $40.660 $43.360 4:32 PM 92°F AQI 61 9/30/2021 21 - here to search DELL PgUp PgDn Home F10 F11 F12 PrtScr Insert Delete F7 F8 F9 F3 F4 F5 F6 Num
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