ty Company expects sales for the first three months of next year to be $205,000, $240,000 and $280,000, respectively. Getty ects 30 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent he month of the sale and 90 percent in the following month. mpute a schedule of Getty's cash receipts for the months of February and March. dgeted cash receipts February March

ty Company expects sales for the first three months of next year to be $205,000, $240,000 and $280,000, respectively. Getty ects 30 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent he month of the sale and 90 percent in the following month. mpute a schedule of Getty's cash receipts for the months of February and March. dgeted cash receipts February March

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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Management wants to know if there will be a need for short-term financing in February. Essential information is as follows: Estimated sales for January and February are $1.1 million and $750,000, respectively. Sixty percent of sales are for cash and 40 percent are credit sales that are collected the next month. Cash disbursements that vary with sales are 35 percent of sales. Fixed operating disbursements are $400,000 a month. Depreciation expense is $50,000 a month. A tax payment of $70,000 is due in January. A bond payment of $250,000 is owed and will be due in February. The cash balance at the beginning of January is $12,000. Management seeks a minimum cash balance of $9,000. December credit sales were $110,000. Round your answers to the nearest dollar. Use a minus sign to enter shortage of cash, if any. January February Excess (shortage) of cash $ $ The firm need short-term funds in February.
Here is a forecast of sales by National Bromide for the first four months of 2019 (figures in $ thousands): Month 1 Month 2 Month 3 Month 4 Cash sales 17 26 20 16 Sales on credit 120 140 110 90 On the average 52% of credit sales are paid for in the current month, 32% are paid in the next month, and the remainder are paid in the month after that. What is the expected cash inflow from operations in months 3 and 4? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number.)
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 $73,000 in June, $63,000 in July, and $95,000 in August?
chedule 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 $115,000 November 144,000 December 210,000 The Accounts Receivable balance on September 30 was $77,000. 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 Sales For the Three Months Ending December 31 October November December Receipts from cash sales: Cash sales $ $ $ September sales on account: Collected in October October sales on account:…
Assume receivables of $20,000 at the start of the January are all collected during the month; if sales for January and February are $400,000 and $300,000 respectively; the company typically receives payment from 20% of its customers within the same month, 60% the following month, and the remaining 20% by the end of the second following month, how much would accounts receivable be at the end of February?
Millen’s managers have made the following additional assumptions and estimates Estimated sales for July and August are $310,000 and $330,000, respectively. Each month’s sales are 20% cash sales and 80% credit sales. Each month’s credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. Each month’s ending inventory must equal 20% of the cost of next month’s sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred. The company does not plan to buy or sell any plant and equipment…
Office World Inc. has “cash and carry” customers and credit customers. Office World estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 40% pay their accounts in the month of sale, while the remaining 60% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $700,000 November 650,000 December 500,000 The Accounts Receivable balance on September 30 was $290,000. Prepare a schedule of cash collections from sales for October, November, and December. Enter all amounts as positive numbers. Office World Inc.Schedule of 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: Collected in October fill in the blank 4 October sales on…
Halifax Shoes has 33% 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 $85,447 in June, $65,772 in July, and $85,928 in August? Round to the nearest penny, two decimal places
Valley's managers have made the following additional assumptions and estimates: Estimated sales for July and August are $345,000 and $315,000 respectively Each month's sales are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of the sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July Each month's ending inventory must equal 20% of the cost of the next month's sales. The Cost of Goods Sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July Monthly selling and administrative expenses are always $75,000. Each month $10,000 of this total amount is depreciation expense and the remaining $65,000 relates to expenses that are paid in the month they are incurred The company does not plan to buy or…
Your projected sales for the first 3 months of next year are as follows:January, $15,000; February, $20,000; and March, $25,000. Based on lastyear’s data, cash sales are 20 percent of total sales for each month. Of theaccounts receivable, 60 percent are collected in the month after the sale and40 percent are collected in the second month following the sale. Sales forNovember of the current year are $15,000 and for December are $17,000.You have the following estimated payments: January, $4,500; February,$5,500; and March, $5,200.a. Using the format from the pro forma cash budget in Table 6–8, what is yourmonthly cash budget for January, February, and March?b. What will your accounts receivable be for the beginning of April?c. Will your company have any borrowing requirements for any month duringthis 3-month period?
Vertical Ladder Company (VLC) forecasts its sales for January through April will be $40,000, $60,000, $100,000, and $90,000, respectively. All sales are made on credit, and it is expected that 40 percent of sales will be collected in the month of the sale and the remainder will be collected the month following the sale. Customers who pay in the month of the sale will take the 2 percent cash discount VLC offers for paying early. VLC normally purchases and pays for raw materials, which cost 45 percent of sales, one month prior to selling the finished products. Employees' wages represent 20 percent of sales and rent is $6,000 per month. At the beginning of February, VLC expects to have $4,000 in cash, which is $1,000 greater than its target cash balance. Using the information provided, construct VLC's cash budget for February and March. Round your answers to the nearest dollar. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". February March…