from the following data of nature’s herbs company, prepare a sales forecast and schedule of cash receipts for the company covering the last quarter of the year. based on past experience, 20% of sales are collected in the month of sales, 70% in the following month, and 10% are never collected. nature’s herbs company has forecast credit sales for the fourth quarter of the year: september (actual) p 100,000 fourth quarter: october 80,000 november 70,000 december 120,000

Q: The Guitar Shoppe reports the following sales forecast: August, $150,000; and September, $170,000.…

A: Schedule of Cash receipts shows cash receipts from all the sources during a particular period.

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: Jane MacDonald, Carroll Financial Analyst, prepared the following sales and cash disbursement…

A: Cash budget is the forecasting of the cash revenues and expenditures that an entity might plan to…

Q: Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that…

A: WORKING NOTE : 1) The cash sales for any month will be: 0.20 * Sales of that month. 2) Cash…

Q: The company has the following expected pattern of collections on credit sales 70 percent collected…

A: Collection from june sales = june sales x 70% = 150000*70% = P105000

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: The Dilly Company (DC) began operations on December 1, 2021. All sales are credit sales with 50%…

A: cash collection is calculated by multiplying the collection % with the respective month sales.

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

A: In this case of Halifax shoes, it is given that there are  a certain fixed proportion of credit…

Q: How much cash would be collected in June from sales? * NUBD Co. has the following sales forecasts…

A: The question is related to the Budgetory Control. In the question it is given that  Cash Sales = 75%…

Q: The Professional Service Company expects 80% of sales for cash and 20% on credit. The company…

A: The budgets are prepared to estimate the requirements for the future period.

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: Eastern Auto Parts Inc. has 30 percent of its sales paid for in cash and 70 percent on credit. All…

A: Cash budget means expected cash receipts and expected cash payment with opening and closing cash…

Q: The Guitar Shoppe reports the following sales forecast: August, $120,000; September, $210,000. Cash…

A: Cash receipt budgets used by the entity to identify the amount of cash collected every month from…

Q: 1.A financial analyst for Carroll Company has prepared the following sales and cash disbursement…

A: Cash budget is a pre-planned record of expenditures and revenues. It is used to estimate the…

Q: All sales are made on credit terms of net 30 days and are collected the following month and no bad…

A: Income statement means a statement which shows the expenses and revenue of the organisation during a…

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

A: The cash receipts are different from the sales revenue because some part of sales are made in cash…

Q: The Professional Service Company expects 70% of sales for cash and 30% on credit. The company…

A: Credit Sales of June: 70% will be collected in June. 25% will be collected in July. 5% are not…

Q: How much cash will be collected in​ January? In​ February? In​ March? For the quarter in​ total?

A: WORKING NOTE   November December January Febuary March   Sales revenue              16,500…

Q: How to solve for the 3rd and 4th month.

A: It is given that cash collection in a month includes all cash sales in current month, 60% of credit…

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: Ballentine Company expects sales for June, July, and August of $65,000, $71,000, and $61,000,…

A: Cash sales for August (61,000 x 40%) = $24,400

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: In 2021, Chatsworth Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in…

A: July sales = $40,000 July Cash sales = 40% July Credit sales = 60% Uncollectble amount = 5% of…

Q: The management of Marigold Industries estimates that credit sales for August, September, October,…

A: The cash collection is done as per the collection schedule.  Collection for October include 25% of…

Q: Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about…

A: Accounts receivable refers to the balance amount to the firm for goods and services delivered but…

Q: Millen’s managers have made the following additional assumptions and estimates Estimated sales for…

A: ACCOUNT RECEIVABLE; An account receivable is defined as it is money that has not been paid by…

Q: Cash receipts A firm reported actual sales of $65,000 in the month of June and $70,000 in July. The…

A: Given information : Sales in June = $65,000 Sales in July = $70,000 Expected sales in August =…

Q: The company’s sales manager prepared the following sales forecast for the first half of the year.…

A: Schedule of the cash collection of Accounts Receivable shall be prepared for each month of second…

Q: Gilmore Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales…

A: Accounts receivable represents the income that has been earned but not yet received.

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: All sales are made on credit terms of net 30 days and are collected the following month and no bad…

A: The cash flows statement and cash budget show the inflows and outflows of cash during the year. Cash…

Q: Eastern Auto Parts Inc. has 20 percent of its sales paid for in cash and 80 percent on credit. All…

A: Solution:- Cash receipt budget is the budget prepared to forecast the upcoming cash receipts by the…

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: Gerry Jacobs, a financial analyst for Best Value Supermarkets, has prepared the following sales and…

A: Budgeting is a process of estimating the outcomes of the upcoming period. Cash budget is a part of…

Q: Trapp Co. was organized on August 1 of the current year.  Projected sales for the first three months…

A: Working notes: Excel workings:

Q: All sales are made on credit terms of net 30 days and are collected the following month and no bad…

A: Preparation of Monthly Proforma Income Statement for the Quarter ending December 31, 2020:-…

Q: Avery Company projects the following sales for the first three months of the​ year: $13,500 in…

A: Jan Feb Mar   Cash Sales 10800 12720 12640 Credit Sales 1350 2940 3170 Total Cash…

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: 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: Marcel Company projects the following sales for the first three months of the year: $11,200 in…

A: A cash budget is an estimation of expected cash receipts and disbursements on the basis of past…

Q: The company has received a large order and anticipates the need to go to the bank to increase its…

A:

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.