Alpha CD Inc. began operations on January 1 of the current year with a P12,000 cash balance. Forty percent of sales are collected in the month of sale; 60% are collected in the month following sale. Similarly, 20% of purchases are paid in the month of purchase, and 80% are paid in the month following purchase. The following data apply to January and February: January P35,000 30,000 7,000 February P55,000 40,000 9,000 Sales Purchases Operating expenses

Q: Jasper Company has 62% of its sales on credit and 38% for cash. All credit sales are collected in…

A: April May June  Cash sales 38%  $196,460  $200,260 $209,760   Sales on…

Q: Equarter by month. Cash sales are 10% of total sales each month. Historically, sales on ccount lave…

A: The cash collection schedule is prepared to estimate the cadh collection during the period.

Q: Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that…

A: A cash budget is an estimation of expected cash receipts and disbursements on the basis of past…

Q: the following are forecasts of sales and purchases for a company.                     Sales…

A: Formula: Cash collections = Sales value x Amount collection percentage

Q: Sequoia Furniture Company's sales over the past three months, half of which are for cash, were as…

A: A. Collection period is 60 days. Half of the sales of each month are credit Thus credit sales of…

Q: The Dilly Company (DC) began operations on December 1, 2021. All sales are credit sales with 50%…

A: cash collection is calculated by multiplying the collection % with the respective month sales.

Q: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is…

A: In this case of Halifax shoes, it is given that there are  a certain fixed proportion of credit…

Q: Wolverine, Inc. began operations on January 1 of the current year with a $12,000 cash balance. Forty…

A: The cash budget shows the position of cash inflow and outflow during a period of time. Budgets are…

Q: A company has the following collection pattern: month of sale 40%; month following sale, 60%. If…

A: Note : Sales of Feb Corrected : $200000 Statement of Computation of Cash Collection In February…

Q: Eastern Auto Parts Inc. has 30 percent of its sales paid for in cash and 70 percent on credit. All…

A: Cash budget means expected cash receipts and expected cash payment with opening and closing cash…

Q: A company's sales for the coming months are as follows: April, P175,000 June, P140,000 August,…

A: The Cash Budget is the total estimation of the total cash receipts and the total cash to be disburse…

Q: Required: 2. Anticipated total cash available from all sources in August. 3. August cash payments…

A: 2. Total Cash Available from all Sources in August Particulars     Amount Opening Cash Balance…

Q: Month Sales Purchases July P25,000 P10,000 August 10,000 2,500 September 15,000 5,000…

A: In the month of September amount collected from customers includes 20% of September sales , 50% of…

Q: OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25%…

A: October November December Total sales 58,000 65,000 72,000 Less: Cash sales (Total sales x…

Q: Dolittle and Dalley has $4,000 in purchases for January and $6,000 in purchases for February. It…

A: Total Cash payments for inventory  in February  = (Purchases for February ×70%) + (Purchases of…

Q: UIO Company makes all of its sales on account. UIOcollects its account as follows: 20% in the month…

A: The account receivables are the assets of the business which would be converted into cash within one…

Q: The Danser Corporation expects to generate sales equal to $30,000 in January, $33,000 in February,…

A: Total cash collection for March is 20% of March sales, 50% of February Sales and 30% of January…

Q: Alpha CD Inc. began operations on January 1 of the current year with a P12,000 cash balance. Forty…

A: Cash Budget: A cash budget is a forecast of a company's cash flow over a given time period. This…

Q: Trapp Co. was organized on August 1 of the current year.  Projected sales for the first three months…

A: Cash sales means the sales which are done by the seller against cash receipts. So, cash sales are…

Q: Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that…

A: October November December Total Sales $110,000 $138,000 $201,000 Cash sales (25%) $27,500…

Q: Cash Collections for Belcher Motors found that 35% of its sales were cash and the remaining 65% are…

A: The cash collection during the quarter depends on the percentage of cash sales and credit sales and…

Q: Use the following information for questions (29 to 32). The following information pertains to Adel…

A: 1)         November October purchases paid 2,400 4,000* 60%   November purchases paid…

Q: Halifax Shoes has 39% of its sales in cash and the remainder on credit. Of the credit sales, 65% is…

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: NUBD Company makes all of its sales on account. NUBD collects its account as follows: 20% in the…

A: Ending Balance = Beginning Balance + Credit Sales - Payments received from Customers

Q: Trapp Co. was organized on August 1 of the current year.  Projected sales for the next  three months…

A: A cash budget is an estimation of expected cash receipts and disbursements on the basis of past…

Q: The management of Marigold Industries estimates that credit sales for August, September, October,…

A: The cash collection is done as per the collection schedule.  Collection for October include 25% of…

Q: d.                                                             Cash Receipts…

A: Jan Feb Mar   Total Sales Value         90,000        1,10,000        1,20,000   Sale in…

Q: J&P Corp., has been accumulating operating data in order to prepare an annual profit plan. Details…

A: Under the management accounting, the forecast of sales, purchases, expenses, etc. are made for…

Q: The company’s sales manager prepared the following sales forecast for the first half of the year.…

A: Schedule of the cash collection of Accounts Receivable shall be prepared for each month of second…

Q: Eddie's Bar and Restaurant Supplies expects its revenues and payments for the first part of the year…

A: The cash budget is an estimation of the cash receipts and cash payments for each month or a period…

Q: The cash balance, May 31, 20X4, is $15,000. Sales proceeds are collected as follows: 80% the month…

A: Cash budget: A cash budget is a budget which records the expected cash inflows and outflows of a…

Q: Eastern Auto Parts Inc. has 15 percent of its sales paid for in cash and 85 percent on credit. All…

A: The cash receipts schedule presents the pattern in which the business entity expects to collect cash…

Q: Eastern Auto Parts Inc. has 20 percent of its sales paid for in cash and 80 percent on credit. All…

A: Solution:- Cash receipt budget is the budget prepared to forecast the upcoming cash receipts by the…

Q: from the following data of nature’s herbs company, prepare a sales forecast and schedule of cash…

A: The sales which were on credit would receive the amount as per the time specified in the credit…

Q: XYZ has forecast its sales revenues and purchases for the last 5 months of 2015 to be as follows:…

A: The cash budget is prepared to record cash receipts and cash disbursements made during the period.…

Q: Galaxy Lighting Company manufactures and sells lighting fixtures. Estimated sales for     the next…

A: Cash budget refers to the complete estimation of business cash flow for a particular period of time.

Q: Eastern Auto Parts Inc. has 20 percent of its sales paid for in cash and 80 percent on credit. All…

A: This question said that cash sales are 20% and credit sales are 80%. The credit sales are recovered…

Q: Sherman Company provides services in the retail flooring industry. The following information is…

A: January Revenue    =            $ 2,50,000 + increment @ 5%   =            $    12,500 ($ 2,50,000 x…

Q: ABC Company manufactures and sells lighting fixtures. Estimated sales for the next three months are;…

A: Here in this question we will required to prepare budgets. Budget is a estimation of management…

Q: Pardee Company makes 30% of its sales for cash and 70% on account. 60% of the account sales are…

A: Cash sales 30% + 70% credit sales = 100% sales out of the 70 % the collection is made as follows:…

Q: Al Bahr Corporation, a wholesaler, provided the following information Month Sales January 64000…

A: The budget is prepared to estimate the cash collection in the future.

Q: Required: 1. Anticipated cash receipts from accounts receivable in August.

A: Accounts Receivables are as follows: Credit Sales for August = P300000 Credit Sales for July =…

Q: Sherman Company provides services in the retail flooring industry. The following information is…

A: Solving 3 sub parts A)

Q: Trapp Co. was organized on August 1 of the current year.  Projected sales for the next three months…

A: Cash collections schedule represents the cash collected by an entity during a specific period by…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.