• Budgeted sales (all on credit) for November, December, and January are $250,000, $210,000, and $200,000, respectively. • Cash collections of sales are expected to be 75% in the month of sale and 23% in the month following the sale. • The remainder of the sales is expected to be uncollectible. • The cost of goods sold is always 65% of sales. • Each month's ending inventory equals 20% of next month's cost of goods sold. • 40% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month • Monthly selling and administrative expenses that are paid in cash in the month incurred total $21,500. • Monthly depreciation expense is $20,000. • Dividends of $5,000 to be declared in December and paid in Janauary. e the above information to answer the following FIVE questions. e expected cash collections from customers in December are: O $210,000 $250,000 O $220,000 O $215,000 e ending balance of Accounts Payable for December is:

• Budgeted sales (all on credit) for November, December, and January are $250,000, $210,000, and $200,000, respectively. • Cash collections of sales are expected to be 75% in the month of sale and 23% in the month following the sale. • The remainder of the sales is expected to be uncollectible. • The cost of goods sold is always 65% of sales. • Each month's ending inventory equals 20% of next month's cost of goods sold. • 40% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month • Monthly selling and administrative expenses that are paid in cash in the month incurred total $21,500. • Monthly depreciation expense is $20,000. • Dividends of $5,000 to be declared in December and paid in Janauary. e the above information to answer the following FIVE questions. e expected cash collections from customers in December are: O $210,000 $250,000 O $220,000 O $215,000 e ending balance of Accounts Payable for December is:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 23E: Historically, Ragman Company has had no significant bad debt experience with its customers. Cash...

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Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received as follows: 40 percent of credit sales in the month of the sale 35 percent of credit sales in the first subsequent month 20 percent of credit sales in the second subsequent month 5 percent of credit sales in the third subsequent month The forecast for both cash and credit sales is as follows. Required: 1. What is the forecasted cash inflow for Ragman Company for May? 2. Due to deteriorating economic conditions, Ragman Company has now decided that its cash forecast should include a bad debt adjustment of 2 percent of credit sales, beginning with sales for the month of April. Because of this policy change, what will happen to the total expected cash inflow related to sales made in April? (CMA adapted)
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.
Mountaineers expects total sales of $702,500 for January and $351,000 for February. Assume that Mountaineers's sales are collected as follows: November sales totaled $398,000, and December sales were $407,000. Prepare a schedule of cash receipts from customers for January and February. Round answers to the nearest dollar. (If an input field is not used in the table leave the input field empty, do nothing enter a zero.)
O'Connor Corporation had December Sales of $30,000; Anticipated Sales during January are $40,000; February Sales are projected at $37,500; 40% of Sales are Cash Sales; The remainder are on account; Sales on account are expected to be collected 50% in the month of Sale; 45% in the month following the month of Sale; 5% ultimately prove uncollectible. Required: How much are anticipated Cash collections during the month of February?
Calculate February Net Cash Flow (Labeled Z Below): January February March Sales $10,000 $15,000 $20,000 Current Month Collection (40%) $4,000 $6,000 $8,000 Previous Month Collection (60%) $0 $6,000 $9,000 Total Cash Receipts X $12,000 $17,000 Estimated Cash Payments (100%) $3,000 $15,000 $12,000 Net Cash Flow Y Z $5,000 Group of answer choices $54,000 $27,000 $15,000 $3,000 ($3,000)
Tox ltd management expect the next three months from January to March 2018 to demand some unusual cash flows. A cash balance of R106 764 is currently on hand.1. Sales for December 2017: R1 339 200 2. Total sales forecasts are: • January 2018 R 669 600 • February 2018 R 892 800 • March 2018 R 781 200 •April 2018 R 892 800 3. 40% of all sales are on credit, while cash sales amount to 60% of total sales. 4. Cost of goods sold average 75% of sales. Inventory purchased during each month averages the cost of sales for the following month. The creditor payment period averages 15 days and goods are purchased consistently over the month. 5. Operating expenses are projected as follows: • Salaries and wages at 12% of sales paid in the month of the sale. • Other expenses at an average of 10%of sales paid in the month of the sale. • Cash receipts expected from repayment of a loan to an employee of R 22 320 due in March 2018. • Repayment of short-term loan of R11 160 is due in March 2018. •…
Splitterfield Foods forecasts the following sales and expenses: June July August Sales ($ millions) 120 150 160 Purchases of raw materials ($ millions) 70 80 85 Other expenses ($ millions) 30 38 40 Seventy percent of sales are paid for in the same month and the remainder with a delay of one month. All raw materials are paid for with a delay of one month, other expenses are paid with no delay. What is the expected cash flow from operations in July? Select one: a. $32 million b. $20 million c. $29.5 million d. $33 million
Cash receipts A firm reported actual sales of $65,000 in the month of June and $70,000 in July. The sales forecasts indicate that sales are expected to be $85,000, $92,000, and $95,750 for the months of August, September, and October, respec tively. Sales are 60% cash and 40% credit, and credit sales are collected evenly over the following 2 months. No other cash receipts are received. What are the firm's expected cash receipts for the months of August, September, and October?
A. The following information is extracted from Merry Hotel’s management report for themonth of January 2022. USD Beginning cash balance 8,200 Budgeted revenue 13,000 Purchase of inventory by cash 4,500 Cash repayment of bank loan 5,800 Additional information, 70% of Sosana Hotel’s revenue is received in cash and theremaining 30% on credit. All credit sales are expected to be collected in the followingmonth. Assume that there were no credit sales and credit purchases in December 2021.Based on the given information, prepare a cash budget for the month ended 31st January2022 to calculate ending cash balance.
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?
5. Pacific Place has developed the following sales forecast for the following months. Month Sales May $500,000 June $650,000 July $380,000 August $300,000 The collection policy for customers is: 40 percent in the month of sale 60 percent in the following month after sale How much is the expected total cash collections from customers in June? a)$260,000 b)$590,000 c)$610,000 d)$300,000 e)$560,000
Firm sales for July are projected as $100,000. The sales in May and June were $60,000 and $75,000 respectively. The firm's collection during month of sales id 15%, during month after sales is 65% and during two months after sales is 20%. The firm offers a 3% incentive to pay during month of sales. Further, firm applies a bad debt loss of 10% two months after sale (June Sales). What is the expected cash collection for the month of July a. $75,750 b. 74100 c. $100,000 d. $$97,000 e. None of the above