Archer Electronics Company's actual sales and purchases for April and May are shown here along with forecast sales and purchasesfor June through September:April (actual)May (actual)June (forecast)July (forecast)August (forecast)September (forecast)Sales$ 370,000350,000325,000325,000340,000380,000Purchases$ 155,000145,000145,000205,000225,000220,000The company makes 20 percent of its sales for cash and 80 percent on credit. Of the credit sales, 50 percent are collected in themonth after the sale and 50 percent are collected two months later. Archer pays for 20 percent of its purchases in the month afterpurchase 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 aredue in June and September. There is a scheduled capital outlay of $350,000 in September.Archer Electronics' ending cash balance in May is $22,500. The minimum desired cash balance is $10,500. b. Prepare a schedule of monthly cash payments for June through September.Note: Input all amounts as positive. Leave no cells blank be certain to enter O wherever required.Materials purchasesMaterials: One month after purchaseMaterials: Two months after purchaseLabor expenseOverhead expenseInterest paymentsDividend paymentsTax paymentsCapital outlayTotal paymentsAprilArcher ElectronicsCash Payments ScheduleMayJuneJuly0 $August0September$

A cash budget is prepared by the companies where they estimate the cash inflows and cash outflows…

Answered: b. Prepare a schedule of monthly cash…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9PB: Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May,...

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Fitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
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…
Data regarding a company's monthly sales for the last six months of the year and its projected collection patterns are shown below:Forecasated sales:July = P775,000August = P750,000September = P825,000October = P800,000November = P850,000December = P900,000Types of sales:Cash sales = 20%Credit sales = 80%Collection pattern for credit sales:In the month of sale = 40%In the first month following the sale = 57%Uncollectible = 3% The cost of merchandise averages 40% of its selling price. The company's policy is to maintain an inventory equal to 25% of the next month's forecasted sales. The inventory balance at cost is P80,000 as of June 30. How much is the total cash receipts that would be budgeted for the month of September?
The following are forecasts of sales and purchases for KWANGYA Company: Sales Purchases April P80,000 P30,000 May P90,000 P40,000 June P85,000 P30,000 Purchases are all paid the following month at a 2 percent discount. Cash disbursements for operating expenses in June were P5,000. How much is the total cash payment for purchases and operating expenses for the month of June? A P35,000 P86,500 P85,500 P44,200
f) The Cathy Specialist Corporation approached you to compile a cash disbursement schedule for the month of March, April and May. Use the following information. Sales: January-RMS20,000; February-RM540,000; March-RM550,000; April=RM600,000; May-RM660,000; June-RM670,000. Purchases: Purchases are calculated as 70% of the following month's sales, 50% of purchase are made in cash, 30% of purchases are settled one month after purchase, and the remaining 20% of purchase are settled two months after purchase. c) d) e) g) h) the firm's expected cash receipts for a) b) Rent: The firm pays rent of RM9,500 per month. Wages & salaries: the fixed wage and salary costs are RM7,500 per month plus a variable cost of 6.5% of the current month's sales. Taxes: the tax bill to be paid in May amount to RM57,500. Fixed asset outlay: new equipment will be acquired during March at a cost of RM85,000. Interest payment: an amount of RM32,000 for interest is due in March. Cash Dividend: Dividends of RM15,000…
Carson Ltd. has prepared the following 2021 projections for its beverage company: Sales Month Cash Sales Credit Sales May $ 16,000 $ 68,000 June 20,000 80,000 July 18,000 74,000 August 24,000 92,000 September 22,000 76,000 Receivables have been historically collected at the following rates: 40% in the month of sale 45% in the month following sale 15% two months after sale Inventory Purchases Month Purchase Amounts May $ 70,000 June 72,000 July 74,000 August 78,000 September 80,000 40% of purchases are paid for in cash in the month of sale, and the balance is paid the following month. General Costs In addition to purchases, Carson has the following monthly costs: Salaries and wages: $ 8,000 Rent: $4,000 General costs are paid in the month incurred. Other Information Carson plans on declaring and issuing $5,000 in dividends in July, and to purchase new equipment valued…
Aston Company reported the following balances at September 30, 2020:Sales Revenue $280,000Sales Returns and Allowances 13,000Sales Discounts 5,000Cost of Goods Sold 160,500Calculate the Net sales for the month.
Actual and projected sales of an entity for September and October are as follows September (actual) Cash sales= 20000 Credit sales= 50000 October (projected) Cash sales =30000 Credit sales =55000 All credit sales are collected in the month following the month in which the sales is made the September 30 cash balance is 23000 cash disbursement in October are projected to be 94000to maintain a minimum cash balance of 15000 on October 31 the entity will need to borrow A. 0 B. 6000 C. 11000 D. 16000
Roque Company has been accumulating operating data in order to prepare an annual profit plan. Details regarding Roque’s sales for the first 6 months of the coming year are as follows: Forecasted sales January P600,000; February P650,000; March P700,000; April P625,000; May P720,000; June P800,000 Types of sales Cash sales 20% Credit sales 80% Collection Pattern for Credit Sales Month of sale 30% One month following sale 40% Second month following sales 25% Roque’s cost of goods sold averages 40% of the sales value. Roque’s objective is to maintain a target inventory equal to 30% of the next month’s sales in units. Purchases of merchandise for resale are paid for in the month following the sale. The variable operating expenses (other tan cost of goods sold) for Roque are 10% of sales and are paid for in the month following the sale. The annual fixed operating expenses are presented below. All of these are incurred uniformly throughout the year and paid monthly except for…
Roque Company has been accumulating operating data in order to prepare an annual profit plan. Details regarding Roque’s sales for the first 6 months of the coming year are as follows: Forecasted sales January P600,000; February P650,000; March P700,000; April P625,000; May P720,000; June P800,000 Types of sales Cash sales 20% Credit sales 80% Collection Pattern for Credit Sales Month of sale 30% One month following sale 40% Second month following sales 25% Roque’s cost of goods sold averages 40% of the sales value. Roque’s objective is to maintain a target inventory equal to 30% of the next month’s sales in units. Purchases of merchandise for resale are paid for in the month following the sale. The variable operating expenses (other tan cost of goods sold) for Roque are 10% of sales and are paid for in the month following the sale. The annual fixed operating expenses are presented below. All of these are incurred uniformly throughout the year and paid monthly except for insurance and…
Fernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:1. Anticipated cash receipts from accounts receivable in August.
Fernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:2. Anticipated total cash available from all sources in August.3. August cash payments for purchases made in July and August.

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