Smith Company was organized on August 1 of the current year. Projected sales for the next three months are:   August $250,000 September  200,000 October  275,000   The company expects to sell 50% of its merchandise for cash and 50% for sales on account. Of the sales on account, 30% are expected to be collected in the month of the sale and the remainder in the following month.   Prepare a schedule indicating cash collections from cash and accounts receivable for the three months.

Q: Geaham Company projects the following sales for the first three months of the year: $12.600 in…

A: Cash receipts from customers: It refers to the amount to be received from the customers against cash…

Q: The Cash balance on Jan 01 of the Cowan Company is $ 5000. Sales and purchases for the first four…

A: Cash budget is the very important budget in the organisation by which expected cash receipts and…

Q: Jane MacDonald, Carroll Financial Analyst, prepared the following sales and cash disbursement…

A: Cash budget is the forecasting of the cash revenues and expenditures that an entity might plan to…

Q: Suppose that the Sales in December 2019 were 78,893. The sales are expected to grow by 15% in…

A: In the month of June. 56% (100%-22%-22%) of April sales cash is collected, 22% of May sales and 22%…

Q: How much cash would be collected in June from sales? * NUBD Co. has the following sales forecasts…

A: The question is related to the Budgetory Control. In the question it is given that  Cash Sales = 75%…

Q: The Professional Service Company expects 80% of sales for cash and 20% on credit. The company…

A: The budgets are prepared to estimate the requirements for the future period.

Q: Wolverine, Inc. began operations on January 1 of the current year with a $12,000 cash balance. Forty…

A: The cash budget shows the position of cash inflow and outflow during a period of time. Budgets are…

Q: Marlin Company projects the follwoing sales for the first thre months of the year: $11500 in…

A: Working Note Particulars  January   February   March  Total Budgeted Sales      11,500…

Q: NUBD Co. has the following sales forecasts for the selected three month period in 2021: Month April…

A: 75% of sales of June will be collected in June. 25 of sales of May will be collected in June.

Q: The following are forecasts of sales and purchases for KWANGYA Company: Sales Purchases April…

A: Cash payment is the amount of money paid in order to recompense the expenses.

Q: 1.A financial analyst for Carroll Company has prepared the following sales and cash disbursement…

A: Cash budget is a pre-planned record of expenditures and revenues. It is used to estimate the…

Q: All sales are made on credit terms of net 30 days and are collected the following month and no bad…

A: Income statement means a statement which shows the expenses and revenue of the organisation during a…

Q: Frontier Ltd., a leader in solar technology, makes all sales on credit, offering terms 2/10 net 40.…

A: Cash Budget budget is to be prepared for April may and june month. Jan, Feb and march sales are…

Q: Homer Company expects credit sales for January to be $50,000. Cash sales are expected to be $30,000.…

A: Given,  Credit sales for January = $50,000 Cash sales for January = $30,000 Increase in sales = 10%…

Q: 2. Ann Marie Roopchand Company has forecast its sales as follows: $180,000 (actual) August September…

A: Budgets are made to determine the expected cash receipts and expected cash expenses to be incurred…

Q: The directors of Kingston & Co. were concerned about the company's cash flow. They requested their…

A: All amounts are in (RM).

Q: Dolittle and Dalley has $4,000 in purchases for January and $5,000 in purchases for February. It…

A: January month accounts receivable =   January sales ×  ( 100 % - percentage collected in the month…

Q: Dolittle and Dalley has $4,000 in purchases for January and $6,000 in purchases for February. It…

A: Total Cash payments for inventory  in February  = (Purchases for February ×70%) + (Purchases of…

Q: The Professional Service Company expects 70% of sales for cash and 30% on credit. The company…

A: Credit Sales of June: 70% will be collected in June. 25% will be collected in July. 5% are not…

Q: Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that…

A: Cash Budget is an important device to plan and control cash receipts and payments. it shows the…

Q: Garda purchased $600,000 of merchandise in August and expects to purchase $720,000 in September.…

A: Cash disbursement: It can be defined as the payment of cash made by the company from its account or…

Q: For the month of October, a company predicts total cash collections to be P1 million. Also for…

A: Budget: A budget is an estimation to determine the income that will be earned and expenses that will…

Q: The Palos Company expects sales for June, July, and August of $48,000, $54,000, and $44,000,…

A: Credit sales: Sales are made to customer but payment will be delayed to a future date. Formulas:

Q: Planet Company purchased goods worth $50,000 in July and expects to purchase goods worth $70,000 in…

A: Solution:- Computation of total expected cash disbursement for the month of August as follows…

Q: Suppose that the Sales in December 2019 were 41,498. The sales are expected to grow by 5% in January…

A: Computation of cash collection for the month of July 2020: Excel spread sheet:

Q: Schedule of Cash Collections of Accounts Receivable Office World Inc. has "cash and carry"…

A: A cash budget is an estimation of expected cash receipts and disbursements on the basis of past…

Q: Problem 1. Jane McDonald, a financial analyst for Carroll Company, has prepared the following sales…

A: A cash budget is a budget prepared to know the cash receipts, payments, and ending cash balance for…

Q: NUBD Company is developing a forecast of March 2021 cash receipts from credit sales. Credit sales…

A: opening Receivable =300000 Receivable represent January sale=300000/4=75000 Receivable represent Feb…

Q: NUBD Company is developing a forecast of March 2021 cash receipts from credit sales. Credit sales…

A: Accounts receivable from January sales = Beginning accounts receivable x 1/4 = 300000*1/4 = P75,000…

Q: n August 1 of the current year. Projected sales for the next three months are as follows: $100,000…

A: Schedule of Expected Cash Collections: Schedule of Expected Cash Collections from the customers…

Q: The following are forecasts of sales and purchases for KWANGYA Company: Sales Purchases April…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Mandalay Company provided the following information for the month of March: Beginning cash balance…

A: A cash budget is known as an estimation of expected cash receipts and disbursements based on…

Q: Gilmore Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales…

A: Accounts receivable represents the income that has been earned but not yet received.

Q: Sioux Corporation is estimating the following sales for the first four months of next year:…

A:

Q: All sales are made on credit terms of net 30 days and are collected the following month and no bad…

A: The cash flows statement and cash budget show the inflows and outflows of cash during the year. Cash…

Q: Gerry Jacobs, a financial analyst for Best Value Supermarkets, has prepared the following sales and…

A: Budgeting is a process of estimating the outcomes of the upcoming period. Cash budget is a part of…

Q: Actual and projected sales of an entity for September and October are as follows  September…

A:

Q: All sales are made on credit terms of net 30 days and are collected the following month and no bad…

A: Preparation of Monthly Proforma Income Statement for the Quarter ending December 31, 2020:-…

Q: Projected Cash Receipts,Romaris Brothers Inc. needs a cash receipts schedule for the months of…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: In 2021, Chatsworth Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in…

A: The cash receipts during period consists of receipts from current sales and receipts from past…

Q: The cash balance at the beginning of September is £ 20,000. ii. Actual sales for July and August and…

A: 1) The schedule of cash collections is as follows: September cash sales £39,000 September…

Q: Marcel Company projects the following sales for the first three months of the year: $11,200 in…

A: A cash budget is an estimation of expected cash receipts and disbursements on the basis of past…

Q: Pacific Place has developed the following sales forecast for the following months.   Month…

A: Expected cash collections in June = Cash received from June Sales + Cash received for May Sales.

Q: The Clinton Antique Mall expects to make purchases in the first quarter of 2021 as follows: January…

A: Lets understand the basics. Management prepares cash collection and cash payment schedule in order…

Q: Trapp Co. was organized on August 1 of the current year.  Projected sales for the next three months…

A: Cash collections schedule represents the cash collected by an entity during a specific period by…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.