Marthaler's Suits is looking for assistance with preparing a sales and cash receipts budget tor the upcoming year. Dan, the owner, provides you with the following intormation • The average suit sells for $575. 1.500 suits were sold in December. Expected sales 1.600 in January, 1.800 in February, and 1,700 in March. . Cash sales are expected to be 15% and the rest to be on credit. Of the credit sales, 40% are expected to be collected in the month of sale and the rest in the month following the sale. • Cash payments are expected to be paid all on credit, 55% are expected to be paid in the month of purchase and the rest in the month following the purchase. 1. Create a sales budget for Marthaler's Suits for Q1. Sales Budget January February March Quantity Price Total Sales 2. Create the cash receipts budget for Marthaler's Suits for Q1. Cash Receipts Budget March February January Cash Sales Credit Sales Cash Collection of Credit Sales of Current Month Sales of Prior Month Sales

Marthaler's Suits is looking for assistance with preparing a sales and cash receipts budget tor the upcoming year. Dan, the owner, provides you with the following intormation • The average suit sells for $575. 1.500 suits were sold in December. Expected sales 1.600 in January, 1.800 in February, and 1,700 in March. . Cash sales are expected to be 15% and the rest to be on credit. Of the credit sales, 40% are expected to be collected in the month of sale and the rest in the month following the sale. • Cash payments are expected to be paid all on credit, 55% are expected to be paid in the month of purchase and the rest in the month following the purchase. 1. Create a sales budget for Marthaler's Suits for Q1. Sales Budget January February March Quantity Price Total Sales 2. Create the cash receipts budget for Marthaler's Suits for Q1. Cash Receipts Budget March February January Cash Sales Credit Sales Cash Collection of Credit Sales of Current Month Sales of Prior Month Sales

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...

See similar textbooks

Similar questions

Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?
Cash collections for Wax On Candles found that 60% of sales were collected in the month of the sale, 30% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in January and February?
Treasure Service anticipates the following sales revenue over a five-month period: Its collection history indicates that credit sales are collected as follows: E (Click the icon to view the sales data.) A (Click the icon to view the collections data.) The company's sales are 20% cash and 80% credit. How much cash will be collected in Janua More Info 25% in the month of the sale 50% in the month after the sale Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole do 20% two months after the sale Treasure Service 5% are never collected Cash Collections Budget For the Months of January through March January Data Table Print Done Cash sales Collection of credit sales: 25% Month of sale November December January February March 50% Month after Sales revenue....... 16,100 $ 10,000 $ 15,200 $ 12,000 $ 14,200 20% Two months after Total cash collections Print Done
Your Mom is Proud of You (YMPY) is preparing their cash budget for the upcoming month of August. Based on historical trends, YMPY estimates that 20% of all sales are paid in cash, with the remaining 80% being paid on credit. Of the credit sales, 60% is collected in the month after the sale, and 40% two months after the sale. Sales information has been provided below: o July sales $346,000 o Expected August sales $220,000 YMPY pays for all operating expenses on credit. 70% of their expenses require cash payment in the month immediately following the expense, and the remaining 30% two months following the expense. Operating expense information has been provided below: o July expenses $98,000 o Expected August expenses $72,000 Using the information provided, answer the following questions. What is the budgeted August cash inflows?
Your Mom is Proud of You (YMPY) is preparing their cash budget for the upcoming month of August. Based on historical trends, YMPY estimates that 20% of all sales are paid in cash, with the remaining 80% being paid on credit. Of the credit sales, 60% is collected in the month after the sale, and 40% two months after the sale. Sales information has been provided below: o July sales $346,000 o Expected August sales $220,000 YMPY pays for all operating expenses on credit. 70% of their expenses require cash payment in the month immediately following the expense, and the remaining 30% two months following the expense. Operating expense information has been provided below: o July expenses $98,000 o Expected August expenses $72,000 Using the information provided, answer the following questions. What is the budgeted August cash outflows?
Your Mom is Proud of You (YMPY) is preparing their cash budget for the upcoming month of August. Based on historical trends, YMPY estimates that 20% of all sales are paid in cash, with the remaining 80% being paid on credit. Of the credit sales, 60% is collected in the month after the sale, and 40% two months after the sale. Sales information has been provided below: o July sales $346,000 o Expected August sales $220,000 YMPY pays for all operating expenses on credit. 70% of their expenses require cash payment in the month immediately following the expense, and the remaining 30% two months following the expense. Operating expense information has been provided below: o July expenses $98,000 o Expected August expenses $72,000 Using the information provided, answer the following questions. What is the total budgeted August cash inflow or outflow?
Emerald Service anticipates the following sales revenue over a five-month period Its collection history indicates that credit sales are collected as follows E (Click the icon to view the sales data ) The company's sales are 40% cash and 60% credit O (Click the icon to view the collections data) How much cash will be collected in January? In February? In March? For the quarter in total? Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole dollar) Emerald Service Cash Collections Budget For the Months of January through March January Cash sales 6,080 Collection of credit sales 25% Month of sale 2,280 50% Month after 15% Two months after Total cash collections
Artemis, Inc. has developed a specialized wholesale business selling archery equipment to sporting goods stores. The Artemis cost accountants are going through their quarterly budgeting process and have determined that • Sales (in dollars) are expected to be $260,000 for January, $270,000 for February, and $250,000 for March • The company expects to collect cash from credit sales according to this pattern: 60% in the month of sale and 40% in the month following the sale. Cost of goods sold is expected to be approximately 60% of sales. Artemis would like to have inventory at the end of each month equal to 40% of the cost of goods sold budgeted for the following month. When Artemis purchases archery equipment for its suppliers, they generally make payment in the month following the purchase. . . • At January 1, the beginning balance in the accounts receivable account is $61,000. At January 1, the beginning balance in the accounts payable account is $248,000. . Required: a. Prepare a…
Maraa Company's budget includes the following credit sales for the current year: August, $25,000; September, $36,000; October, $30,000; November, $32,000. Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% is uncollectible. How much cash can Marra expect to collect in October as a result of current and past credit sales? Group of answer choices 1)$19,700. 2)$30,000. 3)$31,100. 4)$28,500. 5)$33,900.
ABC Farm is preparing a collection budget for the year. Sales are expected to be P100,000 in January; P200,000 in February; and P300,000 in March. Approximately 60% of the sale is collected during the month of sale and the other 40% is collected in the following month. What is the beginning accounts receivable balance of March? 1. P 80,000 2. P120,000 3. P180,000 4. P200,000 01 O 2 O 3 0 4