Wildhorse State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the information below for the months of January. February, and March Balances at January 1 are expected to be as follows: Cash $6,160 Inventories $346,500 Accounts receivable 466,000 Accounts payable 149,000 The budget is to be based on the following assumptions: 1. Each month's sales are billed on the last day of the month. 2. Customers are allowed a 3% discount if their payment is made within 10 days after the billing date. Receivables are booked at gross. 3. The company collects 60% of the billings within the discount period, 25% by the end of the month after the date of sale, and 9% by the end of the second month after the date of sale: 6% prove uncollectible. 4. It pays 54% of all materials purchases and the selling general, and administrative expenses in the month purchased and the remainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units of sales 5. The cost of each unit of inventory is $20. 6. Selling general, and administrative expenses, of which $2,200 is for depreciation, are equal to 15% of the current month's sales 7. Actual and projected sales are as follows: Month Sales Units November $396.000 13.200 December 408.000 13,600 January 399,000 13.300 February 384,000 12.800 March 402.000 13,400 April 411000 13.700 (a) Your answer is incorrect. Calculate the budgeted cash disbursements during the month of February Total cash disbursements for February $ 313600 (b) eTextbook and Media Your answer is incorrect Calculate the budgeted cash collections during the month of January Total cash receipts S (c) eTextbook and Media Calculate the budgeted number of units of inventory to be purchased during the month of March. Units to be purchased Attempts: 2 of 2 used Attempts: 2 of 2 used

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
Answer in text form with explanation computation for each steps for all parts correctly
Wildhorse State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the
information below for the months of January February, and March
Balances at January 1 are expected to be as follows:
Cash
$6,160 Inventories
$346,500
Accounts receivable 466,000 Accounts payable
149,000
The budget is to be based on the following assumptions:
Each month's sales are billed on the last day of the month.
2. Customers are allowed a 3% discount if their payment is made within 10 days after the billing date. Receivables are booked at
grass.
The company collects 60% of the billings within the discount period, 25% by the end of the month after the date of sale, and
9% by the end of the second month after the date of sale; 6% prove uncollectible.
It pays 54% of all materials purchases and the selling general, and administrative expenses in the month purchased and the
remainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units of
sales.
5. The cost of each unit of inventory is $20.
6. Selling general, and administrative experses, of which $2,200 is for depreciation, are equal to 15% of the current month's
sales
7. Actual and projected sales are as follows:
Month
Sales
Units
November $396.000 13.200
December 408.000 13,600
January
399,000 13.300
February
384,000 12.800
March
402.000 13,400
April
411000
13.700
(a)
*Your answer is incorrect
Calculate the budgeted cash disbursements during the month of February
Total cash disbursements for February $
313600
(b)
eTextbook and Media
*Your answer is incorrect.
Calculate the budgeted cash collections during the month of January
Total cash receipts $
368688
(c)
eTextbook and Media
Calculate the budgeted number of units of inventory to be purchased during the month of March.
Units to be purchased
Attempts: 2 of 2 used
Attempts: 2 of 2 used
Transcribed Image Text:Wildhorse State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the information below for the months of January February, and March Balances at January 1 are expected to be as follows: Cash $6,160 Inventories $346,500 Accounts receivable 466,000 Accounts payable 149,000 The budget is to be based on the following assumptions: Each month's sales are billed on the last day of the month. 2. Customers are allowed a 3% discount if their payment is made within 10 days after the billing date. Receivables are booked at grass. The company collects 60% of the billings within the discount period, 25% by the end of the month after the date of sale, and 9% by the end of the second month after the date of sale; 6% prove uncollectible. It pays 54% of all materials purchases and the selling general, and administrative expenses in the month purchased and the remainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units of sales. 5. The cost of each unit of inventory is $20. 6. Selling general, and administrative experses, of which $2,200 is for depreciation, are equal to 15% of the current month's sales 7. Actual and projected sales are as follows: Month Sales Units November $396.000 13.200 December 408.000 13,600 January 399,000 13.300 February 384,000 12.800 March 402.000 13,400 April 411000 13.700 (a) *Your answer is incorrect Calculate the budgeted cash disbursements during the month of February Total cash disbursements for February $ 313600 (b) eTextbook and Media *Your answer is incorrect. Calculate the budgeted cash collections during the month of January Total cash receipts $ 368688 (c) eTextbook and Media Calculate the budgeted number of units of inventory to be purchased during the month of March. Units to be purchased Attempts: 2 of 2 used Attempts: 2 of 2 used
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education