The Cash balance on Jan 01 of the Cowan Company is $ 5000. Sales and purchases for the first four months are expected as follows: Jan April $63,000 $14,000 Feb Mar Est Sales $65,000 $12,500 $54,000 $16,500 $66,000 $13,000 Est Purchases On Jan 01, uncollected accounts for months of Nov and Dec of the previous year are $13,500 and $39,150 respectively. Collection from customer follow this pattern: 55% in same month of sales, 35% in following month, 9% in next months and 1% becomes uncollectible. Materials purchased for December were $ 10,000. Purchases are usually paid 30% in same month and remaining by the 10th of the month following the month of purchases. Other cash expenditures of $35,000 are forecasted each month. Compute the Cash Collection during the months of February, Cash balance on Feb 01 te Window and on Feb 28. meet.google.com is sharing a window. Stop sharing Hide

The Cash balance on Jan 01 of the Cowan Company is $ 5000. Sales and purchases for the first four months are expected as follows: Jan April $63,000 $14,000 Feb Mar Est Sales $65,000 $12,500 $54,000 $16,500 $66,000 $13,000 Est Purchases On Jan 01, uncollected accounts for months of Nov and Dec of the previous year are $13,500 and $39,150 respectively. Collection from customer follow this pattern: 55% in same month of sales, 35% in following month, 9% in next months and 1% becomes uncollectible. Materials purchased for December were $ 10,000. Purchases are usually paid 30% in same month and remaining by the 10th of the month following the month of purchases. Other cash expenditures of $35,000 are forecasted each month. Compute the Cash Collection during the months of February, Cash balance on Feb 01 te Window and on Feb 28. meet.google.com is sharing a window. Stop sharing Hide

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 50BE: Accounts Receivable Balance XYZ Corp sells widgets to consumers for $20 each. Its beginning accounts...

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The following information is from Tejas WindowTint’s financial records. Month Sales PurchasesApril ........................... $72,000 ............................................................ $42,000May ............................. 66,000 ............................................................ 48,000June ............................ 60,000 ............................................................ 36,000July .............................. 78,000 ............................................................ 54,000 Collections from customers are normally 70 percent in the month of sale, 20 percent in the month following the sale, and 9 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 2 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August are…
Meadows Company makes all of its sales on account. Meadows collect its accounts as follows: 70% in the month of sale, 25% in the month following sale, and 4% in the second month following sale. Uncollectible accounts are 1% of sales. Meadows expects sales for the first three months of the year to be as follows: January 90,000; February 95,000; and March 100,000. How much cash should Meadows expect to collect in March.A. 99,000B.97,350C. 100,000D. 70,000
Fernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:2. Anticipated total cash available from all sources in August.3. August cash payments for purchases made in July and August.
Fernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:4. Anticipated cash balance on August 31.
Fernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:1. Anticipated cash receipts from accounts receivable in August.
1.The following items were among those that appeared on Rubi Co.’s books at the end of 20X1:Merchandise inventory P600,000Loans to employees 20,000 What amount should Rubi classify as monetary assets in preparing constant peso financial statements? a.0b.20,000c. 600,000d.620,0002. The followimg assets were among those that appeared on Baird’s Co.’s books at the end of the year:Demand bank deposits P650,000Net Long-Term Receivables 400,000Patents and Trademarks 150,000 In preparing constant peso financial statements, how much should Baird classify as monetary assets?a.1,200,000b.1,050,000c.800,000d.650,000
Please provide also the solutions. Thank you! This Year: Accounts receivable = P135,000 Inventory = P136,000 Sales on account = P698,000 Cost of goods sold = P429,000 Last year: Accounts Receivable = P119,000 Inventory = P155,000 The average collection period for this year is closest toa.65 daysb.56 daysc.80 daysd.90 days
XYZ Co. was recently created with a beginning cash balance of P12,000. Expected operations for the first month follows: Cash sales P8,000 Sales on account P30,000 Cash collections P12,000 Cost of merchandise purchased P35,000 Cash paid for merchandise purchased P24,500 Cost of merchandise sold P26,600 Cash paid for display cases P9,600 Selling and administrative expenses P4,000 The display cases are being depreciated at P200 per month and it included in the selling and administrative expenses above. All other selling and administrative expenses are paid as incurred. The company maintains a cash balance of P10,000. The company can borrow from a local bank as needed in increments of P1,000. All borrowings are made at end of the month. Questions: 1. How much is the expected operating income (loss) for the 1st month? 2. How much is the expected cash borrowings at the end of month?
The following information is from Teas Window’s financial records. The company buys its raw material on account and pays:• 60% of accounts payable during the month of purchase• 35% in the first month after purchase• 5% in the second month after purchaseMonth PurchasesApril 50,000May 52,000June 60,000July 72,000Compute the estimated total cash disbursements during July. Show your calculations
On Jan. 31, Ronald Co.’s cash balance is P50,000. On Jan. 13, Ronald Company have purchases on cash worth P35,000. On Jan. 25, they have sales on cash worth P60,000. On Jan. 26, the company paid P15,000 worth of salaries and P5,000 worth of advertising. Compute you cash beginning balance. (Sample Answer: P20,000)
Lucky House Ltd Trial Balance As at 30 September 2020 Account Debit(£) Credit(£)Cash at Bank 5,850Capital Account 15,000Machine 8,100Raw Materials 2,655Stationery 250Accounts Payable 6,545Rent 950Business Insurance 38Prepayments 1,362Sales Income 17,550Cost of Goods Sold 11,345Accounts Receivable 4,500Drawings 4,000Telephone 45Depreciation 135Accumulated Depreciation 135 Total 39,230 39,230 Prepare a statement of cash flow ?
Lucky House Ltd Trial Balance As at 30 September 2020 Account Debit(£) Credit(£)Cash at Bank 5,850Capital Account 15,000Machine 8,100Raw Materials 2,655Stationery 250Accounts Payable 6,545Rent 950Business Insurance 38Prepayments 1,362Sales Income 17,550Cost of Goods Sold 11,345Accounts Receivable 4,500Drawings 4,000Telephone 45Depreciation 135Accumulated Depreciation 135 Total 39,230 39,230 Prepare a Statement of Profit & Loss and Statement of…