and sales. . $3,000,000.00 $2.500,000.00 $2.000,000.00 $1,500.000.00 $1.000.000.00 $500,000.00 Cash Receipt Sales $0.00 March May November December REQUIRED What does this chart tell you about potential risks of misstatement in accounts receivable? Explain which assertions are at risk and the potential over/understatement in accounts receiv- September October Sum of Absolute amount Apri June July August

and sales. . $3,000,000.00 $2.500,000.00 $2.000,000.00 $1,500.000.00 $1.000.000.00 $500,000.00 Cash Receipt Sales $0.00 March May November December REQUIRED What does this chart tell you about potential risks of misstatement in accounts receivable? Explain which assertions are at risk and the potential over/understatement in accounts receiv- September October Sum of Absolute amount Apri June July August

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
20 - In the cash count made on 10.05.202, a cash balance of 25.000 TL was determined. As of the same date, the total debit of the cash account is TL 45,000, and the total receivable is TL 15,000. Which of the following calculations is correct in this situation? a) 397 Count and Receipt Surplus Hs. 5.000 TL (Creditor) B) 760 Marketing Sales and Distribution Expenses Hs. 5,000 (Borrower) NS) 770 General Administrative Expenses Hs. 5,000 (Borrower) D) 100 Case Hs. 5,000 TL (Borrower) TO) 197 Lack of Counting and Receipt Hs. 5,000 TL (Borrower)
9. Bane Company reported P210,000 in sales. Its opening accounts receivable balance was P45,000 and its ending accounts receivable balance was P50,000. The company also reported P20,000 unearned revenues at the end of the year. What was the amount of cash collected from customers for the year? Group of answer choices 210,000 205,000 215,000 225,000
25. For the month of October, a company predicts total cash collections to be P1 million. Alsofor October, it estimates that its beginning cash balance will be P50,000 and that it willborrow cash in the amount of P70,000. If the company estimates an ending cash balanceof P30,000 for October, what must its projected cash disbursements be?a. P1.090.000b. P1,120,000c. P1,070,000d. P1,020,000
Transformers, Inc. prepared cash estimates for the 3rd quarter of 2022 (3-months). The following estimates were developed for certain items: July August September Cash sales P 60,000 P 80,000 P 150,000 Credit sales 30,000 60,000 90,000 Purchases 60,000 55,000 75,000 Payroll 40,000 50,000 60,000 Other expenses 20,000 25,000 30,000 In June, credit sales totaled P50,000 and purchases totaled P60,000. May credit sales were P70,000. Accounts receivable collections amount to 50% in the month after the sale and 40% in the second month after the sale; 10% of the receivables are never collected. Payroll and other expenses are paid in the month incurred. Sixty percent of the purchases are paid in the month incurred and the remainder is paid in the following month. A P20,000 tax payment is due on August 30. The cash balance was P60,000 on July 1 and the company maintain a minimum cash balance of P50,000. Any deficiency in cash can be withdrawn in a multiples of P10,000 from…
5.The Hamada Company sales for 2021 totaled $150,000 and purchases totaled $92,000. Selected January 1, 2021,balances were: accounts receivable, $18,400;inventory, $15,200;accounts payable, $11,700. December 31, 2021, balances were:accounts receivable, $15,800;inventory, $18,400;accounts payable, $14,900. Net cash flows from these activities were: Group of answer choices $57,400 $58,000 $76,400 $60,600
37. At year-end, Kyo Company reported cash and cash equivalents which comprised the following: Cash on hand PhP 600,000 Demand deposit 3,000,000 Certificate of deposit 2,500,000 Postdated customer check 250,000 Petty cash fund 100,000 Traveler’s check 250,000 Manager’s check 150,000 Money order…
Serven Corporation has estimated its accrual-basis revenue and expenses for June 20X1 and would like your help in estimating cash disbursements. Selected data from these estimated amounts are as follows: Sales $ 700,000 Gross profit (as a percent of sales) 30 % Increase in trade accounts receivable for the month $ 20,000 Change in accounts payable during month 0 Increase in inventory during month $ 10,000 Variable selling, general, and administrative expenses include a charge for uncollectible accounts of 1% of sales. Total selling, general, and administrative expenses are $71,000 per month plus 15% of sales. Depreciation expense of $40,000 per month is included in fixed selling, general, and administrative expense. Required: On the basis of the preceding data, what are the estimated cash disbursements from operations for June 20X1?
Yosko expects total sales of $368,000 in January and $400,000 in February. Assume that Yosko's sales are collected as follows: 1(Click the icon to view the collections.) November sales totaled $330,000, and December sales were $350,000. Prepare a schedule of cash receipts from customers for January and February, including the calculation for the Net Accounts Receivable balance on February 28. Round answers to the nearest dollar. (If an input field is not used in the table leave the input field empty; do not enter a zero.) Prepare a schedule of cash receipts from customers for January and February. (If an input field is not used in the table leave the input field empty; do not enter a zero.) Cash Receipts from Customers January February Total sales $368,000 $400,000 January February Cash Receipts from Customers: Nov.—Credit sales, collection of Nov. sales in Jan. $19,800 Dec.—Credit…
Cash Management. A firm maintains a separateaccount for cash disbursements. Total disbursementsare $100,000 per month, spread evenly over the month.Administrative and transaction costs of transferringcash to the disbursement account are $10 per transfer.Marketable securities yield 1% per month. Determinethe size and number of transfers that will minimizethe cost of maintaining the special account. (LO4)
What is the amount of cash disbursements per book in September? A. 10,050,000 B. 9,825,000 C. 10,275,000 D. 10,950,000
45. Last year Lawsby Company reported sales of 120,000 on its income statement. During the year, accounts receivable increased by 10,000 and accounts payable increased by 15,000. The company uses the direct method to determine the net cash provided by the operating activities on the statement of cash flows. The sales revenue adjusted to a cash basis for the year would be: