Baltimore Baking is preparing its cash budget and expects to have sales of $30,000 in January, $35,000 in February, and $35,000 inMarch. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2months after the sale, what are the expected cash receipts for March?O a. $29,700O b. $24,057O c. $33,000O d. $26,730Oe. $36,300

Cash receipts for March will be the current month cash sales and all previous sales cash dues for…

Answered: Baltimore Baking is preparing its cash…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The following sales are predicted for a company’s next four months.
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
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7 Benton Company's sales budget shows the following expected total sales: Month Sales January $17,000 February $21,000 March April The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 69% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be: Multiple Choice O $26,000 $49,000 O O $21,165. $35,200. $33,952. Check $25,725.
Bellmore Limited is ready to begin its third quarter in which peak sales occur and will have a cash opening balance of R22 250 on 1 July. Actual sales for the last two months and budgeted sales for the quarter are as follows; May (actual) R125 000 June (actual) R150 000 July (actual) R200 000 August (budgeted) R300 000 September (budgeted) R160 000 Past experience shows the following: 25% of a month’s sales collected in the month of sale 70% in the month following the month of sale 3% in the second month following the month of sale The remainder is irrecoverable The budgeted material purchases and expenses for the third quarter are as follows: July August September R R R Material purchases 170 000 175 000 87 500 Salaries and wages 22 500 20 000 20 000 Advertising 45 000 35 000 40 000 Rent paid 4 500 4 500 4 500 Depreciation 5 000 5 000 5 000 Material purchases are paid in full in…
vnt.2 Matthew Company has a sales budget for last month of $400,000. Cost of goods sold is expected to be 40% of sales. All units are paid for in the month following purchase. The beginning inventory is $5,000 and an ending inventory of $12,000 is desired. Beginning accounts payable is $76,000. The costs of goods solf for the next month is a) $220,000 b) $160,000 c) $172,000 d) $140,000
Preparing a Production Budget Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales: January 41,000 February 38,000 March 50,000 April 51,000 Patrick's policy is to have 24% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,350 drums of solvent on hand. Required: Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total. If required, round your answers to the nearest whole unit. Patrick Inc. Production Budget For the Coming Quarter January February March 1st Quarter Total Sales fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 Desired ending inventory fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Total needs fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the…
Browning Company's sales budget shows the following expected total sales: Month Sales $23,000 $27,000 $32,000 $43,000 January February March April The company expects 70% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale, 69% in the month following the sale with the remainder being uncollectible and written off. The total cash inflows from sales in April would be: Multiple Choice $22,575 $25,005. $35,881 $23,200
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 $61,000, 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 amount of cash collections from credit sales would the company include in its cash budget for the second month? Multiple Choice $42,700 $18,300 О $46,300 C $30,300
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What is the production budgeted for the second quarter? Company policy is to have a finished goods inventory at the end of each quarter equal to 18 percent of the next quarter's sales. The sales budget for Your Company's projected quarterly sales for next years as follows: Quarter 1: 44,000 units Quarter 2: 35,000 units Quarter 3: Quarter 4: 42,000 units 55,000 units O 44,340 33,740 36,260 O 39,660
Your sales on January and February were $212K and $230K respectively. You'd like to make a cash budget for March, April and May for which you project sales of $205k, $215K and $245K respectively. The cash sales represent 70%, while the ones that give one and two months of credit represent a 20% and 10% respectively. Calculate the inflows for March Calculate the inflows for April Calculate the inflows for May

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