Tyler Corp has the following budgeted sales for the first 4 months of next year: January $80,000 $350,000 February $60,000 $200,000 March April $45,000 $130,000 Cash sales $50,000 Credit sales $145,000 Total sales $430,000 $260,000 $195,000 $175,000 The Company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the following information has been assembled: Collections on credit sales: Month of sale 60% Month after sale 30% 2nd month after sale 10% The accounts receivable balance on January 1 is: Of this amount, $132,000 represents uncollected December sales and $23,000 represents uncollected November $155,000 sales. 12 The total cash collected in January would be: $412,000 А. В. $445,000 с. $389,000 $346,000 E. None of the above D.

Tyler Corp has the following budgeted sales for the first 4 months of next year: January $80,000 $350,000 February $60,000 $200,000 March April $45,000 $130,000 Cash sales $50,000 Credit sales $145,000 Total sales $430,000 $260,000 $195,000 $175,000 The Company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the following information has been assembled: Collections on credit sales: Month of sale 60% Month after sale 30% 2nd month after sale 10% The accounts receivable balance on January 1 is: Of this amount, $132,000 represents uncollected December sales and $23,000 represents uncollected November $155,000 sales. 12 The total cash collected in January would be: $412,000 А. В. $445,000 с. $389,000 $346,000 E. None of the above D.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: Sales Sales/Costs Manufacturing costs Selling and admin. expenses Capital expenses April $150,000 66,000 40,000 0 May $175,000 87,000 46,000 0 June $195,000 115,000 51,000 120,000 The company expects to sell about 15% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent $12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in December, and the annual property taxes are paid in September. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of April 1 include cash of $42,000, marketable…
A company is preparing its cash budget for the upcoming quarter. The company's sales are expected to be $500,000 in January, $600,000 in February, and $700,000 in March. The company's cost of goods sold is 60% of sales. The company's beginning cash balance is $50,000, and the company desires to maintain a minimum cash balance of $25,000. What is the company's budgeted cost of goods sold for February? $360,000 $540,000 $450,000 $350,000
Becker Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $70,000. Budgeted cash disbursements are $254,000, while budgeted cash receipts are $252,000. Becker Company wants to have an ending cash balance of $100,000. How much would Becker Company need to borrow to achieve its desired ending cash balance? $98,000 $168,000 $32,000 $84,000
The following information is provided to assist in the preparation of the Cash Budget for Ding Ltd. for May 2020. The cash balance at 1 May 2020 is $30,000. Budgeted Sales ($) Budgeted Purchases ($) April 170,000 64,000 May 140,000 68,000 All sales are on cash basis and will be collected in the same month the sale is made. All purchases are made on credit and payments are made as follows: 60% of purchases are paid for in the month of purchase. 40% of purchases are paid for in the month following the purchase. The business plans to take out a small business loan of $50,000 at the end of May 2020 and will be repaying it back in July 2020. Selling and administrative expenses each month are $45,000. The selling and administrative expenses include monthly depreciation expense of $6,000. Sales commission is 15% of the total monthly sales, and paid to the staff at the end of every month. Equipment costing $35,000 is expected to be bought in May and paid in…
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $ 280,000 $ 430,000 $ 310,000 $ 330,000 Total cash disbursements $ 330,000 $ 300,000 $ 290,000 $ 310,000 The company’s beginning cash balance for the upcoming fiscal year will be $40,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company’s cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.)
Vishnu
Folkes, Inc has prepared a sales budget for the second quarter as shown below: Budgeted Sales April $ 400,000 May 500,000 June 600,000 The company is in the process of preparing a cash budget for the second quarter. To this end, the following information has been assembled: Collections on Sales In month of sale 70 % In month following sale 25 % In second month following sale 5 % The company gives a 1% cash discount to customers paying in the month of the sale. Records show past sales to be: January $300,000, February $340,000, and March $360,000. Required: Prepare a schedule of cash receipts for the second quarter.
Search Engine Corp. has provided the following details concerning budgeted sales. Budgeted Sales Jan $75,000 Feb 69,000 March 80,000 April 82,000 May 80,500 June 92,000 The collection policy of the company is to collect 20% in the month of sale, 40% in the following month, and remaining 40% in the second month after the month of sale. All sales are made on account. Calculate the cash receipts from customers for the first six months. Jan Feb March April May June Budgeted Sales Cash Receipts Customers: Total Collection from Customers
Mitchell Company had the following budgeted sales for the first half of next year: The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Assume that the accounts recelvable balance on January 1 was $76,000. Of this amount, $60,000 represented uncollected December sales and $16,000 represented uncollected November sales. Glven these data, the total cash collected during January would be: Multiple Choice $138.000 $100,000 $196,000 $197,000
Laurey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $45,100. Budgeted cash receipts total $129,000, and budgeted cash disbursements total $134,000. The desired ending cash balance is $60,000. To attain its desired ending cash balance for June, the company needs to borrow:
Brady, Inc. is in the process of budgeting cash inflows for the next three months. Cash sales are 10 percent of total sales each month. Historically, sales on account have been collected as follows: 70 percent in the month of sale, 25 percent in the month after the sale, and the remaining 5 percent two months after the sale. Sales for the next three months are projected as follows: April, $192,000; May, $210,000; and June, $220,000. Accounts receivable on March 31 was $54,000.
The budgeted sales of Kelley, SA for the given months are as follows: Cash Sales Credit Sales April $38,000 $256,000 May $54,000 $250,000 June $36,000 $192,000 July $33,000 $190,000 August $35,000 $287,000 To prepare a cash budget, the company needs to determine the expected cash collections each month, and has provided the following additional information: The Accounts Receivable balance on April 1 was $82,015. Of this amount, $57,015 represented uncollected March sales and $25,000 represented uncollected February sales. Collections on Credit sales: 65% in month of sale 30% in month following sale 5% in second month following sale Part 1: What should the April cash collected be? $BLANK Part 2: For August 1, what is budgeted Accounts Receivable? (76,100, 100,300, 109,950, 144950, OR 79,700)