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 shownin the company's sales budget for the second quarter given below:Required 1 Required 2Budgeted sales (all on account)From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 60% arecollected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts arenegligible and can be ignored. February sales totaled $420,000, and March sales totaled $450,000.Complete this question by entering your answers in the tabs below.April$ 490,000Required: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?February salesMarch salesApril salesMay salesJune salesTotal cash collectionsPrepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.Schedule of Expected Cash CollectionsAprilMaySHay$ 690,0000 $0 $June$June$ 220,0000 STotalTotal$ 1,400,000000000 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 shownin the company's sales budget for the second quarter given below:Required 1 Required 2Budgeted sales (all on account)From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 60% arecollected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts arenegligible and can be ignored. February sales totaled $420,000, and March sales totaled $450,000.Complete this question by entering your answers in the tabs below.April$ 490,000Required: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?February salesMarch salesApril salesMay salesJune salesTotal cash collectionsPrepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.Schedule of Expected Cash CollectionsAprilMaySHay$ 690,0000 $0 $June$June$ 220,0000 STotalTotal$ 1,400,000000000

The account receivables represent the amount due from customers during the period. The accounts…

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 $ 490,000 May $ 690,000 June $ 220,000 Total $1,400,000 Budgeted sales (all on account) 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 $420,000, and March sales totaled $450,000. 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?

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 $ 490,000 May $ 690,000 June $ 220,000 Total $1,400,000 Budgeted sales (all on account) 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 $420,000, and March sales totaled $450,000. 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?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
Schedule of Expected Cash Collections 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: From past experience, the company has learned that 20% of a month’s sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. Required: 1. Using Schedule 1 as your guide, 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?
Schedule of expected cash collections Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year. These peak sales are shown in the company's sales budget for the second quarter given below: April $300,000 May June Total eted Sales $500,000 $200,000 $1,000,000 From past experience, the company has learned that 15% of the company's sales are for cash. Credit sales are collected as follows: 20% are collected in the month of sale, another 70% are collected in the month following the sale, and the remaining 10% are collected in the second month following the sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. A. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. B. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.
Problem 1. Jane McDonald, a financial analyst for Carroll Company, has prepared the following sales and cash disbursement estimates for the period February to June of the current year. Cash disbursements Month Sales February $500 $400 March 600 300 April 400 600 May 200 500 June 200 200 McDonald notes that historically, 30% of sales have been for cash. Of credit sales, 70% are collected 1 month after the sale, and the remaining 30% are collected 2 months after the sale. The firm wishes to maintain a minimum ending balance in its cash account of $25. Balances above this amount would be invested in short-term government securities (marketable securities), whereas any deficits would be financed through short-term bank borrowing (notes payable). The beginning cash balance at April 1 is $115. a. Prepare cash budgets for April, May, and June. b. How much financing, if any, at a maximum would Carroll Company require to meet its obligations during this 3-month period? c. A pro forma balance…
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: Budgeted sales (all on account) April May June $ 390,000 $ 590,000 $ 230,000 Total $ 1,210,000 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 $320,000, and March sales totaled $350,000. 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? Complete this question by entering your answers in the tabs below.
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?
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 $ 390,000 $ 590,000 $ 230,000 $ 1,210,000 Budgeted sales (all on account) 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 $320,000, and March sales totaled $350,000. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule 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) $ 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 1 (Schedule of Expected Cash Collections) Peak sales for Mideast Products, Inc., occur in August. The company's sales budget for the third quarter showing these peak sales is given below: July P600,000 August P900,000 Total September P2,000,000 Budgeted sales P2,000,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, that another 70% is collected in the month following sale, and that the remaining 10% is collected in the second month following sale. Bad debts are negligible and can be ignored. May sales totaled P430,000 and June sales totaled P540,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter. 2. Assume that the company will prepare a budgeted statement of financial position as of September 30. Compute the accounts receivable as of that date.
Exercises Exercise 1 (Schedule of Expectęd Cash Collections) Peak sales for Mideast Products, Inc., occur in August. The company's sales budget for the third quarter showing these peak sales is given below: July P600,000 September P500,000 Total August P900,000 Budgeted sales P2,000,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, that another 70% is collected in the month following sale, and that the remaining 10% is collected in the second month following sale. Bad debts are negligible and can be ignored. May sales totaled P430,000 and June sales totaled P540,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter. 2. Assume that the company will prepare a budgeted statement of financial position as of September 30. Compute the accounts receivable as of that date.
Problem 3. Taura Corp has the following past information for its credit sales: 60% of sales are collected in month of sale 25% of sales are collected in the month after sale 8% of sales are collected in the second month after sale 5% of sales are collected in the third month after sale 2% uncollectible Credit sales for the last six months of the year are budgeted as follow. July August September October US$20,000 25,000 30,000 35,000 40,000 32,500 November December Required: Calculate the estimated total cash collections during the year's fourth quarter (October, November, and December).
Exercise 2 (Schedule of Expected Cash Collections) Peak sales for General Products, Inc. occur in September. The company's sales budget for the third quarter showing these peak sales is given below, July Budgeted sales... P885,500 August P1,018,000 PI,222,000 P3,125,500 September Total From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, that another 70% is collected in the month following sale, and that the remaining 10% is collected in the second month following sale. Bad debts are negligible and can be ignored. May sales totaled P700,000 and June sales totaled P770,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter. 2. Assume that the company will prepare a budgeted balance sheet of September 30. Compute the accounts receivable as of the date.