13ភE8-11 (Algo) Calculating Cash Receipts [LO 8-4]Shadee Corp. expects to sell 540 sun visors in May and 400 in June. Each visor sells for $17. Shadee's beginning and ending finishedgoods inventories for May are 85 and 55 units, respectively. Ending finished goods inventory for June will be 55 units.It expects the following unit sales for the third quarter:JulyAugustSeptember500490420Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 36 percent is collectedduring the following month, and 14 percent is never collected.Required:Calculate Shadee's total cash receipts for August and September. (Do not round your intermediate calculations. Round your answersto the nearest whole dollar.)Answer is complete but not entirely correct.Total Cash Receipts$AugustSeptember7,863 $6,740

Step 1: Calculation of total cash receipts. JulyAugustSeptemberActual sales$8,500$8,330$7,140…

Answered: 13 ភ E8-11 (Algo) Calculating Cash…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...

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Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
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 $75,000 in June, $65,000 in July, and $90,000 in August?
Ballentine Company expects sales for June, July, and August of $65,000, $71,000, and $61,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 55% of its credit sales in the month following sale, 40% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales? Multiple Choice $39,030. $63,430. $81,600. $89,450. $118,200.
5. Missy Inc. is planning to purchase inventory for resale costing P90,000 in October, P70,000 in November, and P40,000 in December. The company pays 40% of its purchases in the month of purchase and 60% in the month following purchase. What would be budgeted cash disbursements for purchases of inventory in December? P40,000 P70,000 P58,000 P20,000
Sioux Corporation is estimating the following sales for the first four months of next year: January........ $260,000 February...... $230,000 March.......... $270,000 April............. $320,000 Sales are normally collected 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?
The Professional Service Company expects 80% of sales for cash and 20% on credit. The company collects 70% of its credit sales in the month following sale, 25% in the second month following sale, and 5% are not collected (that is, they are "bad debts"). Expected sales for June, July, and August are $64,000, $70,000, and $60,000, respectively. What are the company's expected total cash receipts in August? Multiple Choice $61,000. $77,000. $121,200. $65,000. $13,000.
Archer Electronics Company’s actual sales and purchases for April and May are shown here, along with forecast sales and purchases for June through September. Sales Purchases April (actual) $370,000 $155,000 May (actual) 350,000 145,000 June (forecast) 325,000 145,000 July (forecast) 325,000 205,000 August (forecast) 340,000 225,000 September (forecast) 380,000 220,000 The company makes 20 percent of its sales for cash and 80 percent on credit. Of the credit sales, 50 percent are collected in the month after the sale, and 50 percent are collected two months later. Archer pays for 20 percent of its purchases in the month after purchase and 80 percent two months after. Labor expense equals 15 percent of the current month’s sales. Overhead expense equals $12,500 per month. Interest payments of $32,500 are due in June and September. A cash dividend of $52,500 is scheduled to be paid in June. Tax payments of $25,500 are due in…
Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September P850,000; October P900,000; November P810,000; December P780,000. At Acmal, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. How much cash should Acmal expect to pay out for raw material purchases during the month of November? A. 202,500 B. 832,500 C. 852,500 D. 877,500
Pardee Company makes 30% of its sales for cash and 70% on account. 60% of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Month 1 2 3 4 Total sales $78,000 $80,000 $68,000 $48,000 Total cash receipts in Month 4 will be: A. 38,780 B.68,000 C.53,180 D.50,600
Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September P850,000; October P900,000; November P810,000; December P780,000. At Acmal, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. How much cash should Acmal expect to pay out for raw material purchases during the month of November? 202,500 832,500 852,500 877,500
1. Selerum Company has P299,000 in accounts receivable on January 1, 2006. Budgeted sales for January are P860,000. Selerum expects to sell 20% of its merchandise for cash. Of the remaining sales, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are: P815,000 P691,000 P471,000 P987,000 2. If there were 30,000 pounds of raw materials on hand on January 1, 60,000 pounds are desired for inventory on December 31, and 180,000 pounds are required for annual production, how many pounds of raw materials should be purchased during the year? 150,000 pounds 240,000 pounds 120,000 pounds 210,000 pounds Please help me answer these two with a comprehensive solution. Thanks a lot!
The Palos Company expects sales for June, July, and August of $48,000, $54,000, and $44,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 50% of its credit sales in the month following sale, 45% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales?

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