Beta Company collects 80% of a month's sales in the month of sale and 20% of sales in the following month. What are the cash collections for October? August sales:     $850 September sales:  $900 October sales:    $1,000   $890   $860   $980   $920

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: The ABC Company expects to have sales of $30,000 in January, $33,000 in February, and $38,000 in…

A: Cash receipts will only cover sales from January and no other month

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

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

Q: Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25%…

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

Q: Data regarding a company's monthly sales for the last six months of the year and its projected…

A: Budgeted Cash receipts for September = (Budgeted credit Sales for August X 57%) + (Budgeted Sales…

Q: March, April, and May sales are $100,000, $120,000, and $125,000, respectively. Atotal of 80% of all…

A: Cash Budget:   Cash budget is a budget that is prepared to estimate the cash inflows and cash…

Q: NUBD Co. has the following sales forecasts for the selected three month period in 2021: Month April…

A: 75% of sales of June will be collected in June. 25 of sales of May will be collected in June.

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: Magenta Corporation has the following sales forecasts for the selected three-month period for the…

A: Cash Budget: Cash Budget is a schedule to record cash inflows and outflows over a period with a view…

Q: A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000…

A: Credit sales refer to the sales in which the customer is given some time to pay for the goods…

Q: AXE Co. expects to have sales of P30,000 in January, P33,000 in February, and P38,000 in March. If…

A: Credit sales are the sales in which the corporation does not get the receipts from the sales of…

Q: Earthie’s Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70%…

A: Formula: Credit sale amount = Total sales x credit sale % Multiplying total sales with credit sale…

Q: Dai Hing Bookshop Ltd. has a beginning cash balance of $44,000 on November 1. The firm has projected…

A: November collection = 15/30 x 61000 + 68000 x15/30 = $64500 December collection = 15/30 x 68000 +…

Q: Homer Company expects credit sales for January to be $50,000. Cash sales are expected to be $30,000.…

A: Given,  Credit sales for January = $50,000 Cash sales for January = $30,000 Increase in sales = 10%…

Q: Dolittle and Dalley has $4,000 in purchases for January and $5,000 in purchases for February. It…

A: January month accounts receivable =   January sales ×  ( 100 % - percentage collected in the month…

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: Simpson Glove Company has made the following sales projections for the next six months. All sales…

A: Answer -    The Cash Receipts Schedule -  A cash receipts schedule/ budget shows the pattern and…

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: AXE Co. expects to have sales of P30,000 in January, P33,000 in February, and P38,000 in March. If…

A: Credit sales are purchases made by customers for which payment is delayed. Delayed payments allow…

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: The Palos Company expects sales for June, July, and August of $48,000, $54,000, and $44,000,…

A: Credit sales: Sales are made to customer but payment will be delayed to a future date. Formulas:

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: Planet Company purchased goods worth $50,000 in July and expects to purchase goods worth $70,000 in…

A: Solution:- Computation of total expected cash disbursement for the month of August as follows…

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

A: Cash Receipts from Customers is based on budgeted cash receipts that is estimated on specific…

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: 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: Calculate the net accounting profit for December. Calculate the net cash flow for December. Comment…

A: net accounting profit for the month of December = sales - purchases…

Q: d.                                                             Cash Receipts…

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

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: Beryllium Company had $330,000 sales in December 20X1 and expects total sales of $360,000 in January…

A: Cash receipts is the amount of sales which is received. It shows the amount of sales which is…

Q: Jasper Company has 61% of its sales on credit and 39% for cash. All credit sales are collected in…

A: Budgets are the estimates or forecasts for future period and expressed in quantitative form of…

Q: Jasper Company has 61% of its sales on credit and 39% for cash. All credit sales are collected in…

A: The cash budget is prepared to record the cash receipts and cash payments during the period.

Q: The following are forecasts of sales and purchases for KWANGYA Company: Sales Purchases April…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

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: Steve’s total cash collections in the month o

A: Total cash collections in June = 20% * sales of June + 65% * sales of May + 15% * sales of April

Q: Sioux Corporation is estimating the following sales for the first four months of next year:…

A:

Q: . Alona company expects its June sales to be P300,000, which is 25% higher than its May sales.…

A: Solution: Introduction: A budget is an estimation or a financial plan for a defined period, usually…

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

A: The cash budget is prepared by the management to estimate the expected cash receipt and cash…

Q: Reed Merchandising Company expects to purchase P90,000 of materials in July and P105,000 of…

A: The cash budget is prepared to record the cash receipts and payment 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: 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: Dominic's, Inc. had actual sales for January and February and forecasted sales for March, April, May…

A: Formula: Cash collections = Month sales value x cash collected percentage. Multiplication of month…

Q: Earthie's Shoes has 55% of its sales in cash and the remaining 45% are credit sales. Of the credit…

A: Collection in June will be: Cash sales of June. 70% of credit sales of June. 15% of credit sales of…

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…

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

A: Cash sales for August = Total sales x 30% = $93,000 x 30% = $27,900

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

A: Formula: Cash received amount = Total sales x collectible percentage of sales amount for the month.…

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.