Sunland, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: March April May June July Budgeted sales $299200 $289800 $321000 $280300 $209700 Budgeted purchases $144500 $119700 $128000 $132700 $89400
Sunland, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: March April May June July Budgeted sales $299200 $289800 $321000 $280300 $209700 Budgeted purchases $144500 $119700 $128000 $132700 $89400
Chapter7: Budgeting
Section: Chapter Questions
Problem 12EB: Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the...
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Sunland, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are:
How much cash will Sunland receive during May from customers?
March
|
April
|
May
|
June
|
July
|
|
---|---|---|---|---|---|
Budgeted sales
|
$299200 | $289800 | $321000 | $280300 | $209700 |
Budgeted purchases
|
$144500 | $119700 | $128000 | $132700 | $89400 |
• | Customer amounts on account are collected 60% in the month of sale and 40% in the following month. |
• | Cost of goods sold is 70% of sales. |
• | Sunland purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month. |
• | Operating expenses are: Salaries, $51000; Depreciation, $12000; Rent, $14400; and Utilities, $14800. |
• | Accounts payable is used only for inventory acquisitions. |
How much cash will Sunland receive during May from customers?
$304720
$192600
$302280
$308520
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