Parlee Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data: March April January $60,000 February $70,000 Total sales $50,000 $30,00 What is the Sales Revenue number on the Income Statement for the Quarter Ending March 31 based on the information above
Q: S1: A company that produces salt will most likely use a job-order costing system to accumulate…
A: Job order costing : Job order costing method is applied when manufacturer receive the order for…
Q: Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a…
A: Total Cash Flow - It is the net amount of all cash flowing in and out of business from all over the…
Q: ABC Company has two departments and uses a job-order costing system. ABC applies overhead in…
A: Cost of goods manufactured: Cost of goods manufactured means total manufacturing costs; including…
Q: On April 01, 2022, Chito and Ernie pooled their resources to form a partnership, with the firm…
A: Sometimes, the partners revise their total capital requirements of the partnership firm and for that…
Q: Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to…
A: The administrative expense budget is prepared to record the administration expenses incurred during…
Q: The following information pertains to Christine Sousa Bags for the year ended December 31, 2019.…
A: Financial statement means the statement which include the income statement and the balance sheet.…
Q: ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The…
A: Solution: Under percentage of completion method of revenue recognition, revenue is recognized based…
Q: Molly and Kyle were discussing that Molly was ready to sell her Dell laptop computer. Molly said she…
A: Molly and Kyle had the conversation where they agreed that Molly is interested in selling the Dell…
Q: In a typical 5-day period, the operations team programs a machine to work for 94 hours. Changeovers…
A: Introduction:- The gold standard for assessing industrial productivity is OEE (Overall Equipment…
Q: Jo and Malone formed a partnership and have capital balances of P 100,000 and P 200,000,…
A: In the given question, Jo and Malone have capital balances of P 100,000 and P 200,000 respectively.…
Q: Using the Adjusted Trial Balance shown below, prepare an Income Statement Using the Adjusted Trial…
A: Retained earning means the amount left in business after paying all expenses and dividend to…
Q: On a statement of financial affairs, a company's liabilities should be valued at Select one: a.the…
A: Solution: Liabilities are present obligation of company as a result of past event that requires…
Q: edit sales, counts receivable, Dec. 31, 2018 counts receivable, Dec. 31, 2019 er of days' sales in…
A: Accounts receivable: Accounts receivable refers to the amount to be received within a short period…
Q: The following transactions by Africa Traders occurred during February 2021: The provisional total…
A: The journal which is used to record all the payments or disbursements made by a business entity is…
Q: wrtin Company issues $2,000,000, 6%, 5-year bonds on lanuary 1, Year 4. The bonds pay interest…
A: Solution: The issuer of bonds pays a periodic amount of interest to the bondholders. The Interest…
Q: AAA Co. merged into BBB Corporation on July 1, 2013. In exchange tor the net assets at fair market…
A:
Q: Carlberg Company has two manufacturing departments, Assembly and Painting. The Assembly department…
A: Solution: Equivalent units under weighted average method = Units completed and transferred out +…
Q: capital gains, and $1,592 in short term capital gains. What are Joey's taxes on this investment?
A: Capital gains tax is the tax which is applicable to those taxpayers only who has sold capital assets…
Q: Janet Wooster owns a retail store that sells new and used sporting equipment. Janet has requested a…
A: The cash budget is prepared to record the cash receipts and cash disbursements during the period.…
Q: Which of the following is an international organization that develops and encourages the use of…
A: GRI is an independent organization that has pioneered sustainability reporting since 1997. GRI helps…
Q: Assume the following production data taken from the records of CONEY Manufacturing Co: Transferred…
A: Solution: Equivalent units under weighted average is sum of units completed and transferred out and…
Q: ABC Company uses a backflush costing system with three trigger points: • Purchase of direct…
A: Backflush costing is the one in which cost are calculated when goods are finished. This costing is…
Q: 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming…
A: Production Budget refers to an Expected units to be produced for a period on the basis of Budgeted…
Q: Note: please dont use excel and show your solution. (NO NEED TO CONVERT INTO PERCENTAGE. TWO DECIMAL…
A: Introduction:- The debt ratio indicates that total debt liabilities of a company to the company’s…
Q: Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The…
A: Solution 1: Selling price of sofa 1950 Less: Variable cost per unit of Sofa 1350…
Q: Outrigger Leisure Products sells 2,000 kayaks per year at a price of $450 per unit. Outrigger sells…
A: A variable cost is one that varies according to the amount of production or the quantity of services…
Q: (a) Why is education and training rarely provided by firms? What government policies would encourage…
A: Educated employees earn more and have more opportunities than the person without a degree or…
Q: A young executive is going to purchase a vacation property for investment purposes. She needs to…
A: Introduction: Compound interest is the interest generated on the initial principle plus the interest…
Q: The following balance sheet accounts were taken from the partnership of MDL Co. on March 31, 2019:…
A: Liquidation means where the business of firm is closed down , assets are sold out and liabilities…
Q: Carpark Services began operations in 20X1 and mantans investments in avalate or sale debt securtes…
A: A journal entry is being used to record a business arrangement in a corporation's accounting…
Q: ABC Company has two departments and uses a job-order costing system. ABC applies overhead in…
A: Total manufacturing cost is the sum of direct materials , labor and applied overhead .Direct costs…
Q: ABC Company uses a job-order costing system and a predetermined overhead rate based on machine…
A: Any over or under applied overhead if insignificant is closed to cost of goods sold account. If the…
Q: Felix Inc. manufactures cameras and has monthly demand and capacity of 14,000 units and 16,000 units…
A: Felix Inc. has an excess capacity of 2,000 units. So to accept the special order of 3,000 units,…
Q: A company purchased a piece of equipment by paying $5,000 cash. A shipping cost of $400 to get the…
A: As per IAS 16 Property,plant and Equipment The cost of Property,plant and Equipment includes its…
Q: Raw and In Process account as of the end
A: Raw in a process is a term that is used to describe the goods partially completed and turned from…
Q: 1.Prepare the required adjusting entries in good form. Show your computation as the third line…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: ompounded annually with 9 annual paymen uppose the borrower paid off the loan after 5 ears.…
A: Loan Borrowed $ 90,000 Rate of Interest 4% Term 9 years
Q: Based on the following data, what is the quick ratio, rounded to one decimal point? Accounts…
A: Quick ratio is defined as the companies ability to meet its short term obligations which is most…
Q: Presented below is information related to Ivan Calderon Corp. for the year 2020. Net sales…
A: Multi-step Income Statement is a financial statement that helps to determine the net income of the…
Q: 1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by…
A: Market expenses means the expenses incurred to sell the product including advertising , sales…
Q: Bonita Industries had the following information in its financial statements for the years ended 2020…
A: The payout ratio is calculated by dividing the cash dividend by the net income and multiplying by…
Q: Bizarre Company acquired 6,000 shares with P1 par value at P36 per share. During 2012, the entity…
A: When cost method is used to measure treasury shares. Then treasury shares are to be measured…
Q: 36. If there were no intercompany transactions between the parent and its partially-owned…
A: A partially owned subsidiary company is a company in which another company holds less than 100% of…
Q: issuing at P15 per share one-half of the 950,000 ordinary On January 1, 2021, Penn Company began…
A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…
Q: general journal adjusting entry on December 31, 2021
A: Depreciation refers to the reduction in the value of the fixed asset recorded in the books in a…
Q: In 2022, ABC Company sold inventory costing P150,000 to its 80%-owned subsidiary for P210,000. A…
A: Consolidated Financial statements present assets, liabilities, equities , income , expenses etc of…
Q: Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present,…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: What is meant by "an individual dies intestate?" Select one: a.That person did create a will before…
A: There are certain unwanted situations in the life and there are sudden death of person and many time…
Q: On September 1, the board of directors of Colorado Outfitters, Incorporated, declares and issues a…
A: Journal entries should not be used to record routine transactions such as customer billings and…
Q: discuss some of the issues that some U.S. accountants have with IFRS. There are some fundamental…
A: IFRS stands for International Financial Reporting Standards. GAAP stands for Generally Accepted…
Step by step
Solved in 2 steps
- Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars 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 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 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. 3. What if the recession led Shalimars 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.The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. At the end of the year, actual sales revenue for Product R and Product S was 3,075,000 and 3,254,000, respectively. The actual price charged for Product R was 25 and for Product S was 20. Only 10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled 540,000 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?
- Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent 50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of 40,000, marketable securities of 75,000, and accounts receivable of 300,000 (60,000 from July sales and 240,000 from August sales). Sales on account for July and August were 200,000 and 240,000, respectively. Current liabilities as of September 1 include 40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 55,000 will be made in October. Bridgeports regular quarterly dividend of 25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 50,000. Instructions Prepare a monthly cash budget and supporting schedules for September, October, and November. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales.
- Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1 inventory is 35,000 units, and the desired January 31 inventory is 20,000 units. What is the budgeted production (in units) for January?Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
- Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of 15.9 million and cost of goods sold of 8.75 million. Advertising is a key part of Coral Seas business strategy, and total marketing expense for the year is budgeted at 2.8 million. Total administrative expenses are expected to be 675,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income. Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. 2. What if Coral Seas had interest payments of 500,000 during the year? What effect would that have on operating income? On income before taxes? On net income?Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for July. He plans to develop the budget from the following information: a. Of all sales, 40% are cash sales. b. Of credit sales, 45% are collected within the month of sale. Half of the credit sales collected within the month receive a 2% cash discount (for accounts paid within 10 days). Thirty percent of credit sales are collected in the following month; remaining credit sales are collected the month thereafter. There are virtually no bad debts. c. Sales for the second two quarters of the year follow. (Note: The first 3 months are actual sales, and the last 3 months are estimated sales.) d. The company sells all that it produces each month. The cost of raw materials equals 26% of each sales dollar. The company requires a monthly ending inventory of raw materials equal to the coming months production requirements. Of raw materials purchases, 50% is paid for in the month of purchase. The remaining 50% is paid for in the following month. e. Wages total 105,000 each month and are paid in the month incurred. f. Budgeted monthly operating expenses total 376,000, of which 45,000 is depreciation and 6,000 is expiration of prepaid insurance (the annual premium of 72,000 is paid on January 1). g. Dividends of 130,000, declared on June 30, will be paid on July 15. h. Old equipment will be sold for 25,200 on July 4. i. On July 13, new equipment will be purchased for 173,000. j. The company maintains a minimum cash balance of 20,000. k. The cash balance on July 1 is 27,000. Required: Prepare a cash budget for July. Give a supporting schedule that details the cash collections from sales.TIB makes custom guitars and prepared the following sales budget for the second quarter It also has this additional information related to its expenses: Direct material per unit $55, Direct labor per hour 20, Variable manufacturing overhead per hour 3.50, Fixed manufacturing overhead per month 3,000, Sales commissions per unit 20, Sales salaries per month 5,000, Delivery expense per unit 0.50, Utilities per month 4,000. Administrative salaries per month 20,000, Marketing expenses per month 8,000, Insurance expense per month 11,000, Depreciation expense per month 9,000. Prepare a sales and administrative expense budget for each month in the quarter ended June 30. 2018.