X-Tel budgets sales of $80,000 for April, $116,000 for May, and $56,000 for June.Sales are 60% cash and 40% on credit. All credit sales are collected in the month following the sale. Total sales for March were$12,000. Prepare a schedule of cash receipts from sales for April, May, and JuneSalesCash receipts from:Total cash receiptsX-TELSchedule of Cash Receipts from SalesAprilMayJune$80,000$116,000 $56,000

The objective of the question is to prepare a schedule of cash receipts from sales for the months of…

Answered: X-Tel budgets sales of $80,000 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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Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given here and the following information in its preparation. Sales: February $493,000; March $517,000; April $539,000; May $627,000; June $660,000; July $651,000 Purchases: Purchases are calculated as 65% of the next month's sales, 12% of purchases are made in cash, 55% of purchases are paid for 1 month after purchase, and the remaining 33% of purchases are paid for 2 months after purchase. Rent: The firm pays rent of $8,020 per month. Wages and salaries: Base wage and salary costs are fixed at $5,700 per month plus a variable cost of 7.3% of the current month's sales. Taxes: A tax payment of $54,700 is due in June. Fixed asset outlays: New equipment costing $74,900 will be bought and paid for in April. Interest payments: An interest payment of $30,100 is due in June. Cash dividends: Dividends of $13,000 will be paid in April. Principal repayments…
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