Budget: It is forward looking exercise which the company takes by preparing estimated revenues, costs and resources needed by company for a period. It can be prepared for single period or for multiple periods Cash Budget : The amount of budgeted cash inflows and cash outflows are calculated in preparing the Cash budget The estimated cash receipts of sales for the month of September, October and November The estimated cash receipts of sales for the month of September, October and Novemberis given below The following information is required to calculate cash receipts of sales for the month of September, October and November The sales amount for the month of July, august, September, October, November and December is $98,000, $105,000, $114,000, $94,000, $122,000 and $107,000 The cash collection of sales are 30% of sales amount on the month of sales, the following month 55% will be collected and 10% the following month means the sales amount of July of $98,000 will be collected as follows 30% of $98,000 will be collected in July 55% of $98,000 will be collected in August 10% of $98,000 will be collected in September The cash receipt of sales amount from July, August, September, October and November is calculated as under The total cash receipts for the month of September, October and November is $101,750, $101,400 and $99,700 respectively The total cash receipts for the month of September, October and November is $101,750, $101,400 and $99,700 respectively

Question

Want to see the full answer?

Answer 1

Question

Chapter 14, Problem 14.12E

To determine

Budget: It is forward looking exercise which the company takes by preparing estimated revenues, costs and resources needed by company for a period. It can be prepared for single period or for multiple periods

Cash Budget: The amount of budgeted cash inflows and cash outflows are calculated in preparing the Cash budget

The estimated cash receipts of sales for the month of September, October and November

The estimated cash receipts of sales for the month of September, October and Novemberis given below

The following information is required to calculate cash receipts of sales for the month of September, October and November

The sales amount for the month of July, august, September, October, November and December is $98,000, $105,000, $114,000, $94,000, $122,000 and $107,000

The cash collection of sales are 30% of sales amount on the month of sales, the following month 55% will be collected and 10% the following month means the sales amount of July of $98,000 will be collected as follows

30% of $98,000 will be collected in July
55% of $98,000 will be collected in August
10% of $98,000 will be collected in September

The cash receipt of sales amount from July, August, September, October and November is calculated as under

The total cash receipts for the month of September, October and November is $101,750, $101,400 and $99,700 respectively

The total cash receipts for the month of September, October and November is $101,750, $101,400 and $99,700 respectively

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Viacom Company uses a standard cost system and has established the following standards for one unit of its product: 3 direct labor hours at $24 per hour and 4 pounds of materials at $8 per pound. During April, the company produced 5,000 units using 14,800 direct labor hours at a cost of $25 per hour and 19,800 pounds of materials at a cost of $7.75 per pound. What is the total direct labor variance for April? No AI answer

I am looking for the correct answer to this financial accounting problem using valid accounting standards.

I need help solving this financial accounting question with the proper methodology.