Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $40,000 and $77,000, respectively. The company expects to collect 30% of its credit sales in the month of the sale and the remaining 70% in the following month. What is the expected cash collections from credit sales during the first month?

Emerald Service anticipates the following sales revenue over a five-month period Its collection history indicates that credit sales are collected as follows E (Click the icon to view the sales data ) The company's sales are 40% cash and 60% credit O (Click the icon to view the collections data) How much cash will be collected in January? In February? In March? For the quarter in total? Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole dollar) Emerald Service Cash Collections Budget For the Months of January through March January Cash sales 6,080 Collection of credit sales 25% Month of sale 2,280 50% Month after 15% Two months after Total cash collections

Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $42,000 and $71,000, respectively. The company expects to collect 45% of its credit sales in the month of the sale, 50% in the following month, and 5% is deemed uncollectible. What amount of cash collections from credit sales would the company include in its cash budget for the second month? Multiple Choice   $56,500   $31,950   $35,500   $52,950

Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $32,500 and $48,500, respectively. It also expects credit sales of $58,500 and $68,500, respectively. The company expects to collect 30% of its credit sales in the month of the sale, 65% in the following month, and 5% is deemed uncollectible. What amount of cash collections would appear in the company’s cash budget for the first month?   Multiple Choice   $50,050   $17,550   $66,050   $48,500

Orange Company has sales of $50,000 in March and $60,000 in April. Forecast sales for May, June, and July are $70,000, $80,000, and $100,000, respectively. The firm has a cash balance of $5,000 on 1 May and wishes to maintain a minimum cash balance of $5,000. Given the following data, prepare and interpret a cash budget for the months of May, June, and July. • The firm makes 20% of sales for cash, 60% are collected in the next month, and the remaining 20% are collected in the second month following sale • The firm recelves other income of $2,000 per month • The firm's actual or expected purchases, all made for cash, are $50,000, $70,000, and $80,000 for the months of May through July, respectively • Rent is $3,000 per month • Wages and salaries are 10% of the previous month's sales • Cash dividends of $3,000 will be paid in June • Payment of principal and interest of $4,000 is due in June • A cash purchase of equipment costing $6,000 is scheduled in July • Taxes of $6,000 are due in…

Given the following information, complete the cash budget: Collections occur one month after the sale. January’s credit sales were $90,000. The firm has a certificate of deposit for $50,000 that matures in April. Salaries are $150,000 a month. The monthly mortgage payment is $20,000. Monthly depreciation is $10,000. Property tax of $35,000 is due in February. Round your answers to the nearest dollar. Enter the disbursements values as positive values. Use a minus sign to enter shortage of cash, negative beginning and ending cash values, if any. Do not leave any cells blank. If the answer is zero, enter "0".       February   March   April Sales $   170,000 $   200,000 $   230,000 Cash sales $   35,000 $   20,000 $   70,000 Collections $     $     $     Other receipts $     $     $     Total cash receipts $     $     $     Salaries $     $     $     Mortgage $     $     $     Other disbursements $     $     $     Total cash disbursements $     $     $     Net…

A company is preparing its cash budget for the upcoming quarter. The company's sales are expected to be $500,000 in January, $600,000 in February, and $700,000 in March. The company's cost of goods sold is 60% of sales. The company's beginning cash balance is $50,000, and the company desires to maintain a minimum cash balance of $25,000. What is the company's budgeted cost of goods sold for February?    $360,000    $540,000    $450,000    $350,000

Prince Charles Island Company has expected sales of $6,000 in September, $10,000 in October, $16,000 in November, and $12,000 in December. Cash sales are 20 percent and credit sales are 80 percent of total sales. Historically, 40 percent of receivables are collected in the month after the sale, and the remaining 60 percent collected two months after. Assume that the company's cash payments for November are $13,000, and December $6,000. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. Sales Credit sales Cash sales Collections in the month after credit sales Collections two months after credit sales Total cash receipts Prince Charles Island Company Cash Receipts Schedule September S Cash receipts Cash payments Net cash flow Prince Charles Island Company Cash Budget November Beginning cash balance Cumulative cash balance. Monthly loan or (repayment). Cumulative loan balance. Ending cash…

Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts $ 521,000 410,500 480,000 Cash payments $ 467,800 357,300 528,000 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $30,000 is used to repay loans at month-end. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for January, February, and March. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Beginning cash balance Add: Cash receipts Total cash available KAYAK COMPANY Cash Budget January $ 30,000…

Surity Corporation is preparing its cash payments budget for next month. The following information pertains to the cash payments: 1 Click the icon to view the data.) How much cash will be paid out next month? Surity Corporation Cash Payments Budget Cash payments for direct materials: 45% of last month's purchases 55% of next month's purchases Cash payments for direct labor Cash payments for manufacturing overhead Cash payments for operating expenses Cash payment for taxes Total cash payments