UPENN: LOOSE LEAF CORP.FIN W/CONNECT
17th Edition
ISBN: 9781260361278
Author: Ross
Publisher: McGraw-Hill Publishing Co.
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Chapter 26, Problem 9QP
Calculating Cash Collections The following is the sales budget for Shleifer, Inc., for the first quarter of 2016:
Credit sales are collected as follows:
65 percent in the month of the sale.
20 percent in the month after the sale.
15 percent in the second month after the sale.
The accounts receivable balance at the end of the previous quarter was $ 122,800 ($87,750 of which were uncollected December sales).
- a. Compute the sales for November.
- b. Compute the sales for December.
- c. Compute the cash collections from sales for each month from January through March.
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Schedule of Cash Collections on Accounts Receivable and Cash BudgetBennett Inc. found that about 15% of its sales during the month were forcash. Bennett has the following accounts receivable collectionexperience:
Percent collected in the month of sale
Percent collected in the month after the sale
Percent collected in the second month after the sale
25
68
5
Bennett's anticipated sales for the next few months are as follows:
AprilMayJuneJulyAugust
$250,000290,000280,000295,000300,000
(Note: Round all amounts to the nearest dollar.)
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Income…
Markham Company has completed its sales budget for the first quarter of Year 2. Projected credit sales for the first four months of the year are shown below:
January
$
32,000
February
$
38,000
March
$
47,000
April
$
50,000
The company's past records show collection of credit sales as follows: 32% in the month of sale and the balance in the following month. The total cash collection from receivables in March is expected to be:
Multiple Choice
$47,000.
$33,920.
$44,120.
$40,880.
Huang Company reported the following information for the current year:
Sales
$
860,000
Average operating assets
$
560,000
Margin
9
%
The company's return on investment was:
Multiple Choice
9.00%.
15.36%.
13.82%.
Cannot be ascertained from the information provided.
Chapter 26 Solutions
UPENN: LOOSE LEAF CORP.FIN W/CONNECT
Ch. 26 - Prob. 1CQCh. 26 - Prob. 2CQCh. 26 - Prob. 3CQCh. 26 - Cost of Current Assets Grohl Manufacturing, Inc.,...Ch. 26 - Prob. 5CQCh. 26 - Shortage Costs What are the costs of shortages?...Ch. 26 - Prob. 7CQCh. 26 - Prob. 8CQCh. 26 - Prob. 9CQCh. 26 - Prob. 10CQ
Ch. 26 - Prob. 11CQCh. 26 - Prob. 12CQCh. 26 - Prob. 1QPCh. 26 - Cash Equation Blizzard Corp. has a book value of...Ch. 26 - Changes in the Operating Cycle Indicate the effect...Ch. 26 - Prob. 4QPCh. 26 - Calculating Cash Collections The Litzenberger...Ch. 26 - Prob. 6QPCh. 26 - Prob. 7QPCh. 26 - Calculating Payments The Thakor Corporations...Ch. 26 - Calculating Cash Collections The following is the...Ch. 26 - Prob. 10QPCh. 26 - Prob. 11QPCh. 26 - Prob. 12QPCh. 26 - Prob. 13QPCh. 26 - Prob. 14QPCh. 26 - Prob. 15QPCh. 26 - Prob. 1MCCh. 26 - Rework the cash budget and short-term financial...Ch. 26 - Rework the sales budget assuming an 11 percent...
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