Toyota & Sons is a family-owned auto-parts store. You are the management accountant of the concern and have been given the task of preparing the cash budget for the business for the quarter ending March 31, 2024. Your data collection has yielded the following: (1) Extracts from the sales and purchases budgets are as follows: Month Sales On Account (II) November 2023-March 2024 November December January February March Cash Sales $151,100 $480,000 $375,000 $145,500 $600,000 $360,000 $159,025 $700,000 $508,000 $169,350 $650,000 $400,000 $176,200 $800,000 $521,000 Purchases An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 2/30, n90: 45% in the month of sale 30% in the first month following the sale. 25% in the second month following the sale. Expected purchases include cash purchases of $28,000 in January and $21, 000 in March. All other purchases are on account. Accounts payable are settled as follows, in accordance with the credit terms 4/30, n60: 75% in the month in which the inventory is purchased. 25% in the following month

Toyota & Sons is a family-owned auto-parts store. You are the management accountant of the concern and have been given the task of preparing the cash budget for the business for the quarter ending March 31, 2024. Your data collection has yielded the following: (1) Extracts from the sales and purchases budgets are as follows: Month Sales On Account (II) November 2023-March 2024 November December January February March Cash Sales $151,100 $480,000 $375,000 $145,500 $600,000 $360,000 $159,025 $700,000 $508,000 $169,350 $650,000 $400,000 $176,200 $800,000 $521,000 Purchases An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 2/30, n90: 45% in the month of sale 30% in the first month following the sale. 25% in the second month following the sale. Expected purchases include cash purchases of $28,000 in January and $21, 000 in March. All other purchases are on account. Accounts payable are settled as follows, in accordance with the credit terms 4/30, n60: 75% in the month in which the inventory is purchased. 25% in the following month

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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SALLAT Household Furnishings & Appliances is a family-owned business. You are the management accountant of the entity and have been given the task of preparing the cash budget for the business for the quarter ending September 30, 2022. Your data collection has yielded the following:i) Extracts from the sales and purchases budgets are as follows:MonthCashSalesSalesOn AccountCashPurchasesPurchasesOn AccountMay $75,000 $480,000 $390,000June $135,000 $600,000 $36,000 $360,000July $86,800 $720,000 $61,700 $450,000August $105,600 $640,000 $68,800 $400,000September $112,500 $800,000 $77,250 $500,000ii) An analysis of the records shows that trade receivables (accounts receivable) for sales on account are settled according to the following credit pattern, in accordance with the credit terms 5/30, n90:50% in the month of sale 35% in the first month following the sale15% in the second month following the saleiii) Accounts Payable are settled as follows, in accordance with the credit terms –…
Toyota & Sons is a family-owned auto-parts store. You are the management accountant of theconcern and have been given the task of preparing the cash budget for the business for thequarter ending March 31, 2024. Your data collection has yielded the following:(i) Extracts from the sales and purchases budgets are as follows:Month Nov. 2023 - Mar 2024 cash sales sales on account purchasesNovember $151,100 $480,000 $375,000December $145,500 $600,000 $360,000January $159,025 $700,000 $508,000February $169,350 $650,000 $400,000March…
Toyota & Sons is a family-owned auto-parts store. You are the management accountant of theconcern and have been given the task of preparing the cash budget for the business for thequarter ending March 31, 2024. Your data collection has yielded the following: (i) Extracts from the sales and purchases budgets are as follows:Month Cash Sales Sales on Account Purchases November 2023 – March 2024Cash November $151,100 $480,000 $375,000 December $145,500 $600,000 $360,000 January $159.025 $700,000 $508,000 February…
ONLY ANSWER QUESTION (B) AS I HAVE ANSWER FOR (A) ALREADY SALLAT Household Furnishings & Appliances is a family-owned business. You are themanagement accountant of the entity and have been given the task of preparing the cash budgetfor the business for the quarter ending September 30, 2022. Your data collection has yielded thefollowing:i) Extracts from the sales and purchases budgets are as follows:Month CashSales SalesOn Account CashPurchases PurchasesOn AccountMay $75,000 $480,000 $390,000June $135,000 $600,000 $36,000 $360,000July $86,800 $720,000 $61,700 $450,000August $105,600 $640,000 $68,800…
SALLAT Household Furnishings & Appliances is a family-owned business. You are the management accountant of the entity and have been given the task of preparing the cash budget for the business for the quarter ending September 30, 2022. Your data collection has yielded the following: i) Extracts from the sales and purchases budgets are as follows: Cash Sales Cash Purchases Month Sales On Account Purchases On Account May June July August September $75,000 $135,000 $86,800 $105,600 $112,500 $480,000 $600,000 $720,000 $640,000 $800,000 $36,000 $61,700 $68,800 $77,250 $390,000 $360,000 $450,000 $400,000 $500,000 ii) An analysis of the records shows that trade receivables (accounts receivable) for sales on account are settled according to the following credit pattern, in accordance with the credit terms 5/30, n90: 50% in the month of sale 35% in the first month following the sale 15% in the second month following the sale iii) Accounts Payable are settled as follows, in accordance with the…
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Toyota & Sons is a family-owned auto parts store . You are the management accountant of theconcern and have been given the task of preparing the cash budget for the business for thequarter ending March 31, 2024. Your data collection has yielded the following: (i) Extracts from the sales and purchases budgets are as follows:Month Cash Sales Sales on Account Purchases November 2023 – March 2024Cash November $151,100 $480,000 $375,000December $145,500 $600,000 $360,000January $159.025 $700,000 $508,000February…
SALLAT Household Furnishings & Appliances is a family-owned business. You are themanagement accountant of the entity and have been given the task of preparing the cash budgetfor the business for the quarter ending September 30, 2022. Your data collection has yielded thefollowing: i) Extracts from the sales and purchases budgets are as follows: Month Cash Sales Sales On Account Cash Purchases Purchases On AccountMay $75,000 $480,000 $390,000June $135,000 $600,000 $36,000 $360,000July $86,800 $720,000 $61,700 $450,000August $105,600 $640,000 $68,800 $400,000September $112,500 $800,000 $77,250 $500,000 ii) An analysis of the records shows that trade receivables (accounts receivable) for sales…
Toyota & Sons is a family-owned auto-parts store. You are the management accountant of the concern and have been given the task of preparing the cash budget for the business for the quarter ending March 31, 2024. Your data collection has yielded the following: (i) Extracts from the sales and purchases budgets are as follows: Month November 2023 – March 2024 Cash Sales Sales On Account PurchasesNovember $151,100 $480,000 $375,000December $145,500 $600,000 $360,000January $159,025 $700,000 $508,000February $169,350 $650,000 $400,000March $176,200 $800,000 $521,000(ii) An analysis of the records shows that trade receivables (accounts receivable) are…
SALLAT Household Furnishings & Appliances is a family-owned business. You are the management accountant of the entity and have been given the task of preparing the cash budget for the business for the quarter ending September 30, 2022. Your data collection has yielded the following:i) Extracts from the sales and purchases budgets are as follows: Month Cash Sales Sales on Account Cash Purchases Purchases on Account May 75,000 480,000 390,000 June 135,000 600,000 36,000 360,000 July 86,800 720,000 61,700 450,000 August 105,600 640,000 68,800 400,000 September 112,500 800,000 77,250 500,000 ii) An analysis of the records shows that trade receivables (accounts receivable) for sales on account are settled according to the following credit pattern, in accordance with the credit terms 5/30, n90:50% in the month of sale 35% in the first month following the sale15% in the second month following the saleiii) Accounts Payable are settled as follows, in accordance with the…
SALLAT Household Furnishings & Appliances is a family-owned business. You are the management accountant of the entity and have been given the task of preparing the cash budget for the business for the quarter ending September 30, 2022. Your data collection has yielded the following:i) Extracts from the sales and purchases budgets are as follows: Month Cash Sales Sales on Account Cash Purchases Purchases on Account May 75,000 480,000 390,000 June 135,000 600,000 36,000 360,000 July 86,800 720,000 61,700 450,000 August 105,600 640,000 68,800 400,000 September 112,500 800,000 77,250 500,000 ii) An analysis of the records shows that trade receivables (accounts receivable) for sales on account are settled according to the following credit pattern, in accordance with the credit terms 5/30, n90:50% in the month of sale 35% in the first month following the sale15% in the second month following the saleiii) Accounts Payable are settled as follows, in accordance with the…
Pelican Merchandising & More is a family-owned store. The business is now approaching the end of the year and is in the process of identifying its cash needs for the first quarter of the new year. You are the management accountant of the entity and have been tasked to prepare the cash budget for the business for the quarter ending March 31, 2022. (i) Extracts from the sales and purchases budgets are as follows:Month2021 - 2022CashSalesSalesOn AccountCashPurchasesPurchasesOnAccountNovember 2021 $138,100 $480,000 $345,000December 2021 $156,500 $600,000 $25,800 $380,000January 2022 $170,975 $650,000 $44,625 $400,000February 2022 $135,740 $700,000 $30,400 $480,000March 2022 $226,420 $800,000 $55,100 $540,00 Another team member who is preparing the Budgeted Balance Sheet for the business for the same quarter ending March 31, 2022 and has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement. Is that a reasonable…