Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,680,000 Quarter 2 5,690,000 Quarter 3 6,780,000 Quarter 4 8,040,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $5,050,000 and for the fourth quarter of the current year are $6,950,000. Required: Question Content Area 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. Quarter Cash Sales Credit Sales 3, current year $fill in the blank 9cdb200a100707b_1 $fill in the blank 9cdb200a100707b_2 4, current year fill in the blank 9cdb200a100707b_3 fill in the blank 9cdb200a100707b_4 1, next year fill in the blank 9cdb200a100707b_5 fill in the blank 9cdb200a100707b_6 2, next year fill in the blank 9cdb200a100707b_7 fill in the blank 9cdb200a100707b_8 3, next year fill in the blank 9cdb200a100707b_9 fill in the blank 9cdb200a100707b_10 4, next year fill in the blank 9cdb200a100707b_11 fill in the blank 9cdb200a100707b_12   Question Content Area 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. If an amount is zero, enter "0". Shalimar CompanyCash Receipts BudgetFor the Coming Year   Quarter 1 Quarter 2 Quarter 3 Quarter 4           Cash sales $fill in the blank cea1fdf3903f011_1 $fill in the blank cea1fdf3903f011_2 $fill in the blank cea1fdf3903f011_3 $fill in the blank cea1fdf3903f011_4 Received on account from:         Quarter 3, current year fill in the blank cea1fdf3903f011_5       Quarter 4, current year fill in the blank cea1fdf3903f011_6 fill in the blank cea1fdf3903f011_7     Quarter 1, next year fill in the blank cea1fdf3903f011_8 fill in the blank cea1fdf3903f011_9 fill in the blank cea1fdf3903f011_10   Quarter 2, next year   fill in the blank cea1fdf3903f011_11 fill in the blank cea1fdf3903f011_12 fill in the blank cea1fdf3903f011_13 Quarter 3, next year     fill in the blank cea1fdf3903f011_14 fill in the blank cea1fdf3903f011_15 Quarter 4, next year fill in the blank cea1fdf3903f011_16 fill in the blank cea1fdf3903f011_17 fill in the blank cea1fdf3903f011_18 fill in the blank cea1fdf3903f011_19 Total cash receipts $fill in the blank cea1fdf3903f011_20 $fill in the blank cea1fdf3903f011_21 $fill in the blank cea1fdf3903f011_22 $fill in the blank cea1fdf3903f011_23   Question Content Area 3. What if the recession led Shalimar’s top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption. Shalimar CompanyCash Receipts BudgetFor the Coming Year   Quarter 1 Quarter 2 Quarter 3 Quarter 4           Cash sales $fill in the blank 32b912fd007404c_1 $fill in the blank 32b912fd007404c_2 $fill in the blank 32b912fd007404c_3 $fill in the blank 32b912fd007404c_4 Received on account from:         Quarter 4, current year fill in the blank 32b912fd007404c_5       Quarter 1, next year fill in the blank 32b912fd007404c_6 fill in the blank 32b912fd007404c_7     Quarter 2, next year   fill in the blank 32b912fd007404c_8 fill in the blank 32b912fd007404c_9   Quarter 3, next year     fill in the blank 32b912fd007404c_10 fill in the blank 32b912fd007404c_11 Quarter 4, next year       fill in the blank 32b912fd007404c_12 Total cash receipts $fill in the blank 32b912fd007404c_13 $fill in the blank 32b912fd007404c_14 $fill in the blank 32b912fd007404c_15 $fill in the blank 32b912fd007404c_16

Q: help me identify if this is an asset, expense, withdrawals, liability, revenues - a written promise…

A: Asset is the useful thing we have us like property, car, machines. These are valuable things that…

Q: Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Ormanreported…

A: Income statement is prepared with a view to ascertain the net income earned by the entity over a…

Q: The maturity value of a P100,000 , four-month, 9% note is

A: Note receivable is one of the current assets of the business, on which payment is expected to be…

Q: 3.A machine with a cost of? S20,000, a salvage value of? $8,000 and expected life of 15 years was…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: What are the ethical responsibilities of the tax practitioner in dealing with tax evasion?

A: Tax evasion is a criminal crime that occurs when a person or business willfully fails to pay a…

Q: Anne LLC purchased computer equipment (five-year property) on August 29, 2018 for $36,000. Anne LLC…

A: The half-year convention is used to calculate depreciation for tax purposes, and states that a fixed…

Q: The Bar Corporation applies the lower of cost or netrealizable value (NRV) inventory Data regarding…

A: Net Realizable Value (NRV) = Selling price - Estimated costs to complete            Therefore in…

Q: Pearson company owns 42% of Stadium corporation. Pearson has a basis in the stock of Stadium…

A: The basis in stock means the share of the partner in the company's stocks. The basis in the stock…

Q: At the end of the month, the schedule of accounts payable (a list of ending amounts

A: In schedule of accounts payable,  name of vendor, invoice number, date of sale, due date of bills ,…

Q: You are considering two job offers: Job 1 is a full-time position that pays $58,000 annually and Job…

A: Introduction: Pretax earnings are earnings after all operating expenses have been deducted from…

Q: On November 1, 2020, Skysong, Inc’s stockholders’ equity section is as follows:  Common stock, $10…

A: When a stock dividend is being issued, it will reduce retained earnings of the business and common…

Q: The following information is provided for Mario Company: Retained earnings, P350,000 Preference…

A: Total contributed capital =  Preference share capital + Premium on ordinary shares + Share Premium…

Q: The total depreciation for the year ended December 31, 2020 is 5. The carrying amount of production…

A: Carrying amount of the assets is the value of the assets which has been computed when the…

Q: Royal Lawncare Company produces and selts two packaged products-Weedban ond Greengrow. Revenue and…

A:

Q: On January 1, 2020, Glucose Company, a calendar-year firm, extended a loan to Gyoza Enterprises…

A: CARRYING VALUE IS AN ACCOUNTING MEASURE OF VALUE IN WHICH THE VALUE OF AN ASSET OR COMPANY IS BASED…

Q: Anne LLC purchased computer equipment (five-year property) on August 29, 2018 for S36,000. Anne LLC…

A: Introduction:- Depreciation is expense, which is charged on fixed assets over useful life of the…

Q: Cost Driver rate

A: Cost driver refers to the cost which is affected by some specific business activities and influenced…

Q: McCourt Inc. manufacturers a unique product. The company's controller has prepared the following…

A: Estimated direct labour cost for February = Standard direct labor hours required x Average direct…

Q: Calculate the machine's depreciation using the declining balance method: A company has purchases a…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Comment on the current and potential impact of creative accounting and discuss its management…

A: Bookkeeping is the process of recording financial transactions that affect a company. The accounting…

Q: a. What is the net present value of the project? (Negative amount should be indi factor to 3…

A: Net Present Value It is the difference between the present value of the cash inflows and present…

Q: 7. Question Content Area Schedule of Cash Receipts Del Spencer is the owner and founder of Del…

A: Cash budget:  It implies to a financial plan that gives an estimated figure of all the cash outflows…

Q: The following information is available for Marston Limited. The balance in the bank account of the…

A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…

Q: Vati-Vati CC produces and sells only one product. The following data is available: Net sales N$800…

A: Lets understand the basics. Cost of sales is a all cost required to manufacture product or providing…

Q: Auditing an attestation client's inventory accounts can vary widely in complexity and time required…

A: Inventory accounts are audited to report on the true and fair state of inventory balances on a…

Q: Sweet Company’s outstanding stock consists of 1,700 shares of noncumulative 4% preferred stock with…

A: Formula: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value…

Q: Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no…

A: Cash budget is that budget which shows expected cash receipts, expected cash payments along with…

Q: Atlas Foods produces three supplemental food products simultaneously through a refining process…

A: The joint cost is the cost incurred to produce two or more products and the cost incurred is not…

Q: Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible…

A: A personal retirement account (IRA) is a tax-advantageous savings account that an individual can…

Q: the property factor, leased property is generally valued at

A: A lease is an agreement to use an asset of another party for a fixed period of time in exchange for…

Q: Perdue Company purchased equipment on April 1 for $39,600. The equipment was expected to have a…

A:

Q: MVP Company has below ratios for the year 2021: ROA = 10% Current Ratio = 2:1 What is the effect of…

A: ROA is return on assets ratio, which is one of the profitability ratio which shows how much net…

Q: US company Mary's Fine Fashions manufactures and sells various types of women's clothing. At the end…

A: Standard unit cost = Direct material cost + Direct labor cost = (2.50 x $1.3) + (15 x $0.20) = $6.25

Q: 6. Question Content Area Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman…

A: A Cash Flow Forecast seems to be a tool used by organizations to assist them to anticipate where…

Q: Cash Budget Khloe Company imports gift items from overseas and sells them to gift shops and…

A: Cash Budget is a summary of Cash Receipts and disbursements made during the period. In cash budget…

Q: Consider a situation where you are trying to sell your car, but there are several other cars of poor…

A: This kind of situation occurs when asymmetric information (i.e., when the buyer does not have full…

Q: You are considering two job offers: Job 1 is a full-time position that pays $58,000 annually and Job…

A: Pretax earnings are the earnings of a corporation after subtracting all operating expenses,…

Q: Hudson Company reports the following contribution margin income statement. HUDSON COMPANY…

A: Solution 1: Degree of operating leverage = Contribution margin / Income Contribution margin =…

Q: Hathaway Inc. produces and sells golf umbrellas to local resorts. Hathaway anticipates April to be a…

A: Lets understand the basics. Management prepares flexible budget to know profit and loss at various…

Q: Does the if-converted assumption apply only to diluted earnings per share? O A. The if-converted…

A: If-converted assumption is used to calculate value of converted debenture or preference share,if…

Q: 10 Kingeade Corporation keeps careful track of the time required to fill orders. Data concerning a…

A: Formula used: Manufacturing cycle efficiency = Process Time / Throughput time.

Q: Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATION Balance…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: the following Assumptions: Tangible Asset Value = 16,200,000 Required Return on Tangible Assets =…

A: We can also utilize the surplus earnings method to appraise a corporation. We must first assess the…

Q: Fred is considering three job offers in advertising. • A full-time position as a coordinator that…

A: Gross income is the total earning a worker earns during a time period. However, there are certain…

Q: The condensed financial statements of Ivanhoe Company for the years 2016 and 2017 are presented as…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Nizam Company produces speaker cabinets. Recently, Nizam switched from a traditional departmental…

A: The process of attributing expenses to the activities or objects that caused the costs to be…

Q: Mr Johannes started business with Cash N$200000; purchased goods for cash N$60 000 and on credit…

A: The Goods can be sold for cash and can be on credit. The goods that are sold for cash are added to…

Q: As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased…

A: Journal entries shows the recording of transactions during an accounting year and every transaction…

Q: The following statement suits best the definition of EXPENSES a. Expenses are resources used,…

A: A Expenses is a recurring nature items to be paid. These are shown in the income statement by the…

Q: The following data are given on the sole product of Silva Corporation: Unit Selling Price P 800;…

A: Formulas: Break even sales (Units) = Fixed costs / Contribution Margin per unit  Break even sales…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.