Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale 20 Percent paid in the month after the sale 55 Percent paid in the second month after the sale 23 To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April $237,500 May 310,000 June 325,000 July 300,000 August 375,000 Required: 1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers. Roybal Inc. Schedule of Cash Receipts For July Payments on account: From May credit sales: $fill in the blank da1540f3fff5feb_1 × fill in the blank da1540f3fff5feb_2 % $fill in the blank da1540f3fff5feb_3 From June credit sales: $fill in the blank da1540f3fff5feb_4 × fill in the blank da1540f3fff5feb_5 % fill in the blank da1540f3fff5feb_6 From July credit sales: $fill in the blank da1540f3fff5feb_7 × fill in the blank da1540f3fff5feb_8 % fill in the blank da1540f3fff5feb_9 Less: July cash discount $fill in the blank da1540f3fff5feb_10 × fill in the blank da1540f3fff5feb_11 % fill in the blank da1540f3fff5feb_12 Cash receipts $fill in the blank da1540f3fff5feb_13 2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers. Roybal Inc. Schedule of Cash Receipts For August Payments on account: From June credit sales: $fill in the blank 83117702100e003_1 × fill in the blank 83117702100e003_2 % $fill in the blank 83117702100e003_3 From July credit sales: $fill in the blank 83117702100e003_4 × fill in the blank 83117702100e003_5 % fill in the blank 83117702100e003_6 From August credit sales: $fill in the blank 83117702100e003_7 × fill in the blank 83117702100e003_8 % fill in the blank 83117702100e003_9 Less: August cash discount $fill in the blank 83117702100e003_10 × fill in the blank 83117702100e003_11 % fill in the blank 83117702100e003_12 Cash receipts $fill in the blank 83117702100e003

Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale 20 Percent paid in the month after the sale 55 Percent paid in the second month after the sale 23 To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April $237,500 May 310,000 June 325,000 July 300,000 August 375,000 Required: 1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers. Roybal Inc. Schedule of Cash Receipts For July Payments on account: From May credit sales: $fill in the blank da1540f3fff5feb_1 × fill in the blank da1540f3fff5feb_2 % $fill in the blank da1540f3fff5feb_3 From June credit sales: $fill in the blank da1540f3fff5feb_4 × fill in the blank da1540f3fff5feb_5 % fill in the blank da1540f3fff5feb_6 From July credit sales: $fill in the blank da1540f3fff5feb_7 × fill in the blank da1540f3fff5feb_8 % fill in the blank da1540f3fff5feb_9 Less: July cash discount $fill in the blank da1540f3fff5feb_10 × fill in the blank da1540f3fff5feb_11 % fill in the blank da1540f3fff5feb_12 Cash receipts $fill in the blank da1540f3fff5feb_13 2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers. Roybal Inc. Schedule of Cash Receipts For August Payments on account: From June credit sales: $fill in the blank 83117702100e003_1 × fill in the blank 83117702100e003_2 % $fill in the blank 83117702100e003_3 From July credit sales: $fill in the blank 83117702100e003_4 × fill in the blank 83117702100e003_5 % fill in the blank 83117702100e003_6 From August credit sales: $fill in the blank 83117702100e003_7 × fill in the blank 83117702100e003_8 % fill in the blank 83117702100e003_9 Less: August cash discount $fill in the blank 83117702100e003_10 × fill in the blank 83117702100e003_11 % fill in the blank 83117702100e003_12 Cash receipts $fill in the blank 83117702100e003

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 17E

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Question

Schedule of Cash Collections on Accounts Receivable and Cash Budget

Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience:

Percent paid in the month of sale	20
Percent paid in the month after the sale	55
Percent paid in the second month after the sale	23

To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows:

April	$237,500
May	310,000
June	325,000
July	300,000
August	375,000

Required:

1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.

Roybal Inc. Schedule of Cash Receipts For July
Payments on account:
From May credit sales:
$fill in the blank da1540f3fff5feb_1 × fill in the blank da1540f3fff5feb_2 %				$fill in the blank da1540f3fff5feb_3
From June credit sales:
$fill in the blank da1540f3fff5feb_4 × fill in the blank da1540f3fff5feb_5 %				fill in the blank da1540f3fff5feb_6
From July credit sales:
$fill in the blank da1540f3fff5feb_7 × fill in the blank da1540f3fff5feb_8 %				fill in the blank da1540f3fff5feb_9
Less: July cash discount
$fill in the blank da1540f3fff5feb_10 × fill in the blank da1540f3fff5feb_11 %				fill in the blank da1540f3fff5feb_12
Cash receipts				$fill in the blank da1540f3fff5feb_13

2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers.

Roybal Inc. Schedule of Cash Receipts For August
Payments on account:
From June credit sales:
$fill in the blank 83117702100e003_1 × fill in the blank 83117702100e003_2 %				$fill in the blank 83117702100e003_3
From July credit sales:
$fill in the blank 83117702100e003_4 × fill in the blank 83117702100e003_5 %				fill in the blank 83117702100e003_6
From August credit sales:
$fill in the blank 83117702100e003_7 × fill in the blank 83117702100e003_8 %				fill in the blank 83117702100e003_9
Less: August cash discount
$fill in the blank 83117702100e003_10 × fill in the blank 83117702100e003_11 %				fill in the blank 83117702100e003_12
Cash receipts				$fill in the blank 83117702100e003_13

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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