A company is working on their budgets for the year 2021. The table below has a few of their expectations for 2021. Accounts Receivable on January 1 Sales in January Sales in February Sales in March Sales in April $35,221 $50,735 $54,654 $58,517 $59,497 Historically, this company's collection pattern for sales has been 16% as cash sales and 84% on account. The sales on account get collected 75% one month following the sale and the remainder two months following the sale. The Accounts Receivable on January 1 is the result of credit sales in December 2020 and thus is expected to be collected according to the sales on account pattern (75%/25%). How much should this company expect in Cash Collections for the month of January? (round to the nearest whole dollar/input code 0)

A company is working on their budgets for the year 2021. The table below has a few of their expectations for 2021. Accounts Receivable on January 1 Sales in January Sales in February Sales in March Sales in April $35,221 $50,735 $54,654 $58,517 $59,497 Historically, this company's collection pattern for sales has been 16% as cash sales and 84% on account. The sales on account get collected 75% one month following the sale and the remainder two months following the sale. The Accounts Receivable on January 1 is the result of credit sales in December 2020 and thus is expected to be collected according to the sales on account pattern (75%/25%). How much should this company expect in Cash Collections for the month of January? (round to the nearest whole dollar/input code 0)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 6E: Roman Inc. has the following totals from its operating budgets: Prepare a budgeted income statement...

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A company is working on their budgets for the year 2021. The table below has a few of their expectations for 2021. Accounts Receivable on January 1 Sales in January Sales in February Sales in March Sales in April $35,221 $50,735 $54,654 $58,517 $59,497 Historically, this company's collection pattern for sales has been 16% as cash sales and 84% on account. The sales on account get collected 75% one month following the sale and the remainder two months following the sale. The Accounts Receivable on January 1 is the result of credit sales in December 2020 and thus is expected to be collected according to the sales on account pattern (75%/25%). How much should this company expect in Cash Collections for the month of January? (round to the nearest whole dollar/input code 0) ◄ Previous Next ▸
A company is working on their budgets for the year 2021. The table below has a few of their expectations for 2021. Accounts Payable on April 1 Inventory purchases in March Inventory purchases in April Inventory purchases in May Inventory purchases in June Inventory purchases in July $3,220 $3,880 $5,107 $6,033 $6,150 $7,255 Historically, this company's payment pattern for inventory purchases has been 100% on account which then get paid 17% in the month of purchase and the remainder one month following the purchase. The Accounts Payable on April 1 is the result of inventory purchases in March 2020 and thus is expected to be paid according to the pattern described above. How much should this company expect in Cash Payments for the month of June? (round to the nearest whole dollar/input code 0)
Ivanhoe Corporation prepares monthly cash budgets. Here are relevant data from operating budgets for 2025. Sales Purchases Salaries Administrative expenses Selling expenses Other data. 2. January $360,300 3. 121,000 4. 84,400 71,600 79,300 February All sales and purchases are on account. Eudgeted collections and disbursement data are given below. All other expenses are paid in the month incurred. Administrative expenses include $1,100 of depreciation per month. $400,600 130,900 1. Collections from customers: January $330,600; February $379,000. Payments for purchases: January $102,600; February $143,100. Other receipts: January: collection of December 31, 2024, notes receivable $17,600; February: proceeds from sale of securities $5,200. Other disbursements: February $12,000 cash dividend. 81,200 73,900 86,400 The company's cash balance on January 1, 2025, is expected to be $47,700. The company wants to maintain a minimum cash balance of $56,020. Prepare a cash budget for January and…
A company is working on their budgets for the year 2021. The table below has a few of their expectations for 2021. Accounts Payable on April 1 Inventory purchases in March Inventory purchases in April Inventory purchases in May $3,110 $3,659 $6,782 $6,580 Inventory purchases in $6,518 June Inventory purchases in July $7,725 Historically, this company's payment pattern for inventory purchases has been 100% on account which then get paid 15% in the month of purchase and the remainder one month following the purchase. The Accounts Payable on April 1 is the result of inventory purchases in March 2020 and thus is expected to be paid according to the pattern described above. How much should this company expect in Cash Payments for the month of May? (round to the nearest whole dollar/input code 0)
You are provided with the following information taken from Wildhorse Inc.'s March 31, 2025, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings 1. 2. 3. 4. 5. Additional information concerning Wildhorse Inc. is as follows. 6. 7. Gross profit is 25% of sales. Actual and budgeted sales data: March (actual) April (budgeted) March April Purchases March $48,200 $19,280 42,420 $61,700 Purchases April $11,600 70,700 20,180 36,010 Sales are both cash and credit. Cash collections expected in April are: (40% of $48,200) (60% of $70,700) 120,800 22,560 154,500 11.680 Half of a month's purchases are paid for in the month of purchase and half in the following month. Cash disbursements expecte $22,560 28,320 $50,880 Cash operating costs are anticipated to be $12,630 for the month of April. Equipment costing $2,560 will be purchased for cash in April. The company wishes to maintain a minimum cash balance…
Ivanhoe Company expects to have a cash balance of $49,400 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2017. 1.Collections from customers: January $86,000, February $131,700 2.Payments to suppliers: January $45,600, February $50,300 3.Wages: January $34,300, February $40,300. Wages are paid in the month they are incurred. 4.Administrative expenses: January $24,300, February $33,000. These costs include depreciation of $1,300 per month. All other costs are paid as incurred. 5.Selling expenses: January $18,300, February $21,200. These costs are exclusive of depreciation. They are paid as incurred. 6.Sales of short-term investments in January are expected to realize $13,400 in cash. Ivanhoe has a line of credit at a local bank that enables it to borrow up to $40,300. The company wants to maintain a minimum monthly cash balance of $25,500.
Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. April May June Credit sales $ 689,000 $ 598,000 $ 751,000 Credit purchases 302,000 282,000 338,000 Cash disbursements Wages, taxes, and expenses 137,000 129,000 179,000 Interest 15,600 15,600 15,600 Equipment purchases 53,500 6,600 248,000 The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. Using this information, complete the following cash budget: (Do not round intermediate calculations and round your answers to the nearest whole number,…
Using a separate columnar worksheet or Excel worksheet, prepare a Cash Budget by month for the quarter ending September 30, 2021, from the following data obtained from the CONSCIOÜNESS Company. Support your solution with schedules of estimated receipts and payments. August P 16,000 150,000 July September Cash Sales P 12,000 P 18,000 Credit Sales Purchases 110,000 120,000 90,000 120,000 110,000 Operating expenses Interest expense 15,000 18,000 16,000 2,000 Credit sales are collected 50% in the month of sales, 40% on the month following, 8% in the second month following and 2% uncollectible. Credit sales for May and June are expected to be P100,000 and P90,000, respectively. Purchases of merchandise, all on account, are paid 60% in the month of purchase and 40% in the month following. Purchases for June are estimated at P80,000. Expenses include depreciation of P2,000 monthly, and are paid in the month incurred. Cash balance on June 30, 2021.
WILDHORSE COMPANY Cash Budget $ S January $ Febru
You are provided with the following information taken from Sage Hill Inc's March 31, 2027, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings 1 2 3. 5. 6. 7. Additional information concerning Sage Hill Inc. is as follows. Gross profit is 24% of sales. Actual and budgeted sales data: March (actual) April (budgeted) March April $18.840 $47.100 $62460 $12,280 72.700 23.120 37,100 123,400 22,910 Sales are both cash and credit, Cash collections expected in April are: 152.900 12.320 (40% of $47.100) (60% of $72,700) Half of a month's purchases are paid for in the month of purchase and half in the following month Cash disbursements expecte Purchases March Purchases April $22,910 28,910 $51820 Cash operating costs are anticipated to be $12,110 for the month of April. Equipment costing $2,530 will be purchased for cash in April. The company wishes to maintain a minimum cash balance of $12,240. An…
Boris detergents expects to have a cash balance of P46,000 on January 1, 2020. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January P71,000, February P146,000. 2. Payments to suppliers: January P40,000, February P75,000. 3. Wages: January P30,000, February P40,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January P21,000, February P24,000. These costs include depreciation of P1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January P15,000, February P20,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize P12,000 in cash. The Company has a line of credit at a local bank that enables it to borrow up to P25,000. The company wants to maintain a minimum monthly cash balance of P20,000. Prepare a cash budget for January and February.
Pharoah Company expects to have a cash balance of $101,200 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022. 1. Collections from customers: January $156,200, February $321,200. 2. Payments to suppliers: January $88,000, February $165,000. 3. Wages: January $66,000, February $88,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January $46,200, February $52,800. These costs include depreciation of $2,200 per month. All other costs are paid as incurred. 5. Selling expenses: January $33,000, February $44,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $26,400 in cash. Pharoah Company has a line of credit at a local bank that enables it to borrow up to $55,000. The company wants to maintain a minimum monthly cash balance of $44,000.