Delila Tools Sdn. Bhd. anticipates purchasing materials worth RM90,000 in April and RM105,000 in May. Seventy-five percent of all purchases are paid in the month of purchase while 25 percent are paid the following month of purchases. Compute cash disbursements for materials purchases in May. Answer O RM67,500 O RM101,250 O RM78,750 O RM105,000
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- f) The Cathy Specialist Corporation approached you to compile a cash disbursement schedule for the month of March, April and May. Use the following information. Sales: January-RMS20,000; February-RM540,000; March-RM550,000; April=RM600,000; May-RM660,000; June-RM670,000. Purchases: Purchases are calculated as 70% of the following month's sales, 50% of purchase are made in cash, 30% of purchases are settled one month after purchase, and the remaining 20% of purchase are settled two months after purchase. c) d) e) g) h) the firm's expected cash receipts for a) b) Rent: The firm pays rent of RM9,500 per month. Wages & salaries: the fixed wage and salary costs are RM7,500 per month plus a variable cost of 6.5% of the current month's sales. Taxes: the tax bill to be paid in May amount to RM57,500. Fixed asset outlay: new equipment will be acquired during March at a cost of RM85,000. Interest payment: an amount of RM32,000 for interest is due in March. Cash Dividend: Dividends of RM15,000…Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be? Group of answer choices $210,000 $157,500 $202,500 $135,000Projector Limited has the following projection for the 4 months ending August 2018:MayJuneJulyAugustR’sR’sR’sSales320 000380 000420 000460 000Purchases160 000160 000230 000250 000Rent income11 00011 000??Salaries26 80026 800??1. 50% of the sales are for cash and the balance is on credit.2. All credit sales are collected one month after the sale.3. All purchases are on credit. Creditors are paid in full one month after the month of purchase.4. The tenants rent contract stipulates an increase of 20% from 1 July 2018.5. Salaries are expected to increase to R32 000 per month as at 1 August 2018.6. A new motor vehicle will be purchased during June 2017. Repayments of R6 000 per month will commence on 1 July 2017.7. Advertising costs are expected to be 2% of sales from 1 June 2018.8. A fixed deposit of R25 000 will mature in the month of July 2018.9. On 31 May 2018, the bank is expected to have a favourable balance of R420 000.Required:Prepare a Cash Budget for the three (3) months ending…
- Carla Vista Industries expects credit sales for January, February, and March to be $211,200, $249,600, and $288,000, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month. Credit Sales January January February March To 211200 158400 Collections from Customers February March 249600 $ $ 288000Johns industries expects to purchase $160000 of materials in July and $180000 of materials in August. 3/4 of all purchases are paid in the month of purchase and the other one fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be? 1) 120000 2) 175000 3) 180000 0r 4) 135000QUESTION 1 Below is the information for Clean Bio Sdn. Bhd.: a) Clean Bio's projected sales for the first eight months of 2021 are as follows: May January February March 90,000 300,000 120,000 June 270,000 July August 135,000 225,000 Аpril 240,000 150,000 10% of sales is for cash, another 60% is collected in the following month and 30% is collected in the second month following sales. Clean Bio purchases raw materials one month before its sales. Amount of raw materials needed is 50% of its sales. 50% of the purchases are paid in the month of purchase and the balance is paid one month after the purchase. b) The company pays RM10,000 per month for renting purposes, RM25,000 for salaries and RM20,000 each month for other expenditures. Depreciation is fixed at RM5,000 per month. d) Annual interest of RM30,000 is to be paid equally in May, June and July. A new machine worth RM110,000 will be purchased in June in order to replace the existing machine. e) f) The firm will receive dividend of…
- The following information is from Teas Window’s financial records. The company buys its raw material on account and pays:• 60% of accounts payable during the month of purchase• 35% in the first month after purchase• 5% in the second month after purchaseMonth PurchasesApril 50,000May 52,000June 60,000July 72,000Compute the estimated total cash disbursements during July. Show your calculationsDonald Company expects its purchases for June to be 130,000 and its purchases for July to be 124,000. Donald pays for 60% of its purchases in the month of purchase and receives a 2% discount. donald pays for the remaining 40% in the next month without discount. For purchases only, what are the expected cash payment in July?A. 124,912B. 127,392C. 124,000D. 124,400Top Sdn Bhd had cash of RM13,000 on hand together with trade debtors outstanding balance of RM55,000 as at January 1. During the year, the company expected the following sales to customers by quarter, with collection terms of 50% in cash and 50% in credit receivable in the next quarter: First Second Third Fourth Sales (RM) 110,000 245,000 122,400 149,600 Direct materials purchases in metric tons (MT) costing RM 50.00 per MT payable in the same quarter are as follows: First Second Third Fourth Direct Materials Purchases (MT) 1,300 1,500 1,100 1,000 The production budget showed the following unit production by quarter with an average labour wage rate of RM40.00 payable in the same quarter: First Second Third Fourth Units to be produced 1,500 2,000 1,700 1,500 Top Sdu Bhd planned to pay dividends of RM10,000 per quarter during the year. In July, a new equipment costing RM60,000 will be purchased. An additional cost of RM16,000 was planned for its installation during the fourth quarter.…
- Al Bahr Corporation, a wholesaler, provided the following informationMonthSalesJanuary64000February59000March42000April48000Customers pay 60% of their balances in the month of sale, 30% in the month following sale, and 10% in the second month following sale.Required: Determine the expected cash collection during March.Ratchet Manufacturing anticipates total sales for August, September, and October of $300,000, $260,000, and $270,500 respectively. Cash sales are normally 20% of total sales and the remaining sales are on credit. All credit sales are collected in the first month after the sale. Compute the amount of cash received for September. Multiple Choice $240,000. $292,000. $208,000. $112,000. $448,000.Fernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:1. Anticipated cash receipts from accounts receivable in August.
