Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: April $ 380,000 May June Total $ 580,000 $ 200,000 $ 1,160,000 Budgeted sales (all on account) From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $310,000, and March sales totaled $340,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th?

Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: April $ 380,000 May June Total $ 580,000 $ 200,000 $ 1,160,000 Budgeted sales (all on account) From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $310,000, and March sales totaled $340,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 8-1 (Algo) Schedule of Expected Cash Collections [LO8-2] Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below: April May June Total Budgeted sales (all on account) $ 490,000 $ 690,000 $ 220,000 $ 1,400,000 From past experience, the company has learned that 25% of a month’s sales are collected in the month of
Exercise 8-1 (Algo) Schedule of Expected Cash Collections [LO8-2] Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below: April May June Total Budgeted sales (all on account) $ 430,000 $ 630,000 $ 200,000 $ 1,260,000 From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $360,000, and March sales totaled $390,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th?
P9-2A Monthly Cash Budget Grove, Inc. is a wholesaler for its only product, deluxe wireless electric drills, which sell for $90 each and cost Grove $54 each. On December 1, 2019, Grove's management requested a cash budget for December. The following selected account balances at November 30, 2019, were gathered by the accounting department: Cash $135,000 Marketable securities (at cost) 210,000 Accounts receivable (all trade) 1,710,000 Inventories (15,000 units) 810,000 Operating expenses payable 140,400 Accounts payable (all merchandise) 583,200 Note payable (due 12/31/2019 393,000 Actual sales for the months of October and November were 20,000 and 30,000 units, respectively. Projected unit sales for December and January are 50,000 and 40,000, respectively. Experience indicates that 50% of sales should be collected in the month of sale, 30% in the month…
1. For the month of October, a company predicts total cash collections to be P1 million. Also for October, it estimates that its beginning cash balance will be P50,000 and that it will borrow cash in the amount of P70,000. If the company estimates an ending cash balance of P30,000 for October, what must its projected cash disbursements be? 2. A hospital has provided you with the following budget information for April Cash collections P876,000 April 1 cash balance 23.000 Cash disbursements 978,600 The hospital has a policy of maintaining a minimum cash balance of P20,000 and borrows only in P1,000 increments. How much will the hospital borrow in April?
1. Selerum Company has P299,000 in accounts receivable on January 1, 2006. Budgeted sales for January are P860,000. Selerum expects to sell 20% of its merchandise for cash. Of the remaining sales, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are: P815,000 P691,000 P471,000 P987,000 2. If there were 30,000 pounds of raw materials on hand on January 1, 60,000 pounds are desired for inventory on December 31, and 180,000 pounds are required for annual production, how many pounds of raw materials should be purchased during the year? 150,000 pounds 240,000 pounds 120,000 pounds 210,000 pounds Please help me answer these two with a comprehensive solution. Thanks a lot!
Problem 8-23 Schedule of Expected Cash Collections; Cash Budget [LO8-2, LO8-8] The president of the retailer Prime Products has just approached the company’s bank with a request for a $51,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used: On April 1, the start of the loan period, the cash balance will be $24,400. Accounts receivable on April 1 will total $151,200, of which $129,600 will be collected during April and $17,280 will be collected during May. The remainder will be uncollectible. Past experience shows that 30% of a month’s sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2%…
5. Missy Inc. is planning to purchase inventory for resale costing P90,000 in October, P70,000 in November, and P40,000 in December. The company pays 40% of its purchases in the month of purchase and 60% in the month following purchase. What would be budgeted cash disbursements for purchases of inventory in December? P40,000 P70,000 P58,000 P20,000
Question 9 The Hothi Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: January February Sales $ 350,000 $ 400,000 Direct materials purchases 120,000 110,000 Selling and administrative expenses 220,000 267,000 Cash balances: The Hothi Company expects its cash balance on January 1, 2023, to be $50,000. It wants to maintain a cash balance of $40,000 by using its line of credit (ignore calculation and repayments of interest). Cash receipts: All sales are on account. The company expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. Credit sales: November 2022, $200,000; December 2022, $280,000 Cash disbursements: It pays 30% of direct materials purchases in cash in the month of…
Pine Co. budgeted credit sales for the coming year is P900,000. A proposed relaxation of credit standards increase the Accounts receivable balance by P25,000. The average collection period is expected to increase from 20 to 25 days. How much is the budgeted credit sales of Pine Co. if the increase in average collection period to 25 days push through? (360 day year)a. 1,080,000b. 2,520,000c. 620,000d. 1,660,000
There are only 3 parts to this question. Please answer according to the image posted below. Problem 8-21 (Algo) Schedules of Expected Cash Collections and Disbursements [LO8-2, LO8-4, LO8-8] You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company’s operations: The cash balance on December 1 is $56,600. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales $ 71,200 $ 73,400 $ 86,200 Sales on account $ 440,000 $ 576,000 $ 639,000 Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. Purchases of inventory will total $315,000 for December. Thirty percent of a month’s inventory purchases are paid…
Schedules of Expected Cash Collections and Disbursements; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-9, LO8-10] Skip to question [The following information applies to the questions displayed below.] Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash $ 86,000 Accounts receivable 138,000 Inventory 75,000 Plant and equipment, net of depreciation 229,000 Total assets $ 528,000 Liabilities and Stockholders’ Equity Accounts payable $ 90,000 Common stock 351,000 Retained earnings 87,000 Total liabilities and stockholders’ equity $ 528,000 Exercise 8-12 (Algo) Beech’s managers have made the following additional assumptions and estimates: Estimated sales for July, August, September, and October will be $400,000, $420,000, $410,000, and $430,000,…
Schedules of Expected Cash Collections and Disbursements; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-9, LO8-10] Skip to question [The following information applies to the questions displayed below.] Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash $ 76,000 Accounts receivable 137,000 Inventory 86,100 Plant and equipment, net of depreciation 230,000 Total assets $ 529,100 Liabilities and Stockholders’ Equity Accounts payable $ 91,000 Common stock 312,000 Retained earnings 126,100 Total liabilities and stockholders’ equity $ 529,100 Exercise 8-12 (Algo) Beech’s managers have made the following additional assumptions and estimates: Estimated sales for July, August, September, and October will be $410,000, $430,000, $420,000, and $440,000,…