LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales $50,000 $55,000 nuary bruary rch pril ay une $34,000 $29,000 $39,000 $80,000 $150,000 $170,000 $130,000 $114,000 $200,000 $80,000 company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following rmation has been assembled: lections on sales: 6 in month of sale 6 in month following sale in second month following sale e accounts receivable balance on January 1 of the current year was $65,000, of which $54,000 represents uncollected December sales and $11,000 presents uncollected November sales. e total cash collected during January by LaGrange Corporation would be:
LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales $50,000 $55,000 nuary bruary rch pril ay une $34,000 $29,000 $39,000 $80,000 $150,000 $170,000 $130,000 $114,000 $200,000 $80,000 company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following rmation has been assembled: lections on sales: 6 in month of sale 6 in month following sale in second month following sale e accounts receivable balance on January 1 of the current year was $65,000, of which $54,000 represents uncollected December sales and $11,000 presents uncollected November sales. e total cash collected during January by LaGrange Corporation would be:
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 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:The LaGrange Corporation had the following budgeted sales for the first half of the current year:
Cash Sales Credit Sales
$50,000
$55,000
January
February
March
April
May
June
$34,000
$29,000
$39,000
$80,000
Collections on sales:
40% in month of sale
$150,000
$170,000
$130,000
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following
information has been assembled:
30% in month following sale
30% in second month following sale
$114,000
$200,000
$80,000
The accounts receivable balance on January 1 of the current year was $65,000, of which $54,000 represents uncollected December sales and $11,000
represents uncollected November sales.
The total cash collected during January by LaGrange Corporation would be:
Transcribed Image Text:Multiple Choice
$237,000
$196,000
$90,000
$148,000
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