E8-11 (Algo) Calculating Cash Receipts [LO 8-4]Shadee Corporation expects to sell 500 sun shades In May and 420 in June. Each shades sells for $11. Shadee's beginning and endingfinished goods Inventories for May are 65 and 45 shades, respectively. Ending finished goods Inventory for June will be 60 shades.It expects the following unit sales for the third quarter:JulyAugustSeptember5:30490450Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale. 38 percent is collectedduring the following month, and 10 percent is never collected.Required:Calculate Shadee's total cash receipts for August and September.Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar.Total Cash ReceiptsAugustSeptember

Cash Collection: It is often defined as a process of collecting or receiving cash from the customers…

Answered: E8-11 (Algo) Calculating Cash Receipts…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...

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Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
Data regarding a company's monthly sales for the last six months of the year and its projected collection patterns are shown below:Forecasated sales:July = P775,000August = P750,000September = P825,000October = P800,000November = P850,000December = P900,000Types of sales:Cash sales = 20%Credit sales = 80%Collection pattern for credit sales:In the month of sale = 40%In the first month following the sale = 57%Uncollectible = 3% The cost of merchandise averages 40% of its selling price. The company's policy is to maintain an inventory equal to 25% of the next month's forecasted sales. The inventory balance at cost is P80,000 as of June 30. How much is the total cash receipts that would be budgeted for the month of September?
Air corporation has the following projected sales: P958,450.00 (October) P1,001,515.00 (November) P1,200,000.00 (December). Air corporation collects 50% of the month's sales in the month of sales, 35% in the month following sale, and 15% in the second month following the sale. What would be the cash collection in December? A) P143,767.50 B) P2,294,298.00 P1,837,730.00 P2,201,515.00
10. Right Answer Company has the following sales forecast for the selected three-month period in 2018. April, P120,000; May, P70,000; June, P80,000. 70% of sales are collected in the month of sale, and the balance are collected in the following month. Accounts receivable balance in April 1, P100,000. Cash balance in April 1, P60,000. Minimum cash balance required is P50,000. Cash can be borrowed in the multiples of P10,000 from local bank (disregard the interest charges). What is the cash balance at the end of April assuming that cash is received only from customers and that P200,000 is the cash out during April? 11.Selected information from the accounting records of Check Answer Co. is as follows: Net accounts receivable at Dec. 31, 2018, P900,000; Net accounts receivable at Dec. 31, 2019, P1,000,000; Inventories at Dec. 31, 2018, P1,100,000; Inventories at Dec. 31, 2019, P1,200,000; Accounts receivable turnover, 5 times; inventory turnover, 4 times. What is Check Answer Company's…
E8-11 (Algo) Calculating Cash Receipts [LO 8-4] Shadee Corporation expects to sell 640 sun shades in May and 360 in June. Each shades sells for $11. Shadee's beginning and ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory for June will be 55 shades. It expects the following unit sales for the third quarter: July August September 545 480 440 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 39 percent is collected during the following month, and 9 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. August September Total Cash Receipts
Shadee Corp. expects to sell 600 sun visors in May and 440 in June Each visor sells for $14Shadee's beginning and endin goods inventories for May are 85 and 40 units, respectively Ending finished goods inventory for June will be 55 units expects the following unit sales for the third quarter July August September 545 480 440 Sixty percent of Shadee's sales are cashOf the credit sales52 percent is collected in the month of the sale38 percent is c during the following month , and 10 percent is never collected Required : Calculate Shadee's total cash receipts for August and September (Do not round your intermediate calculations . Round you to the nearest whole dollar )
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.
Shadee Corporation expects to sell 500 sun shades in May and 440 in June. Each shades sells for $19. Shadee's beginning and ending finished goods inventories for May are 75 and 45 shades, respectively. Ending finished goods inventory for June will be 70 shades. It expects the following unit sales for the third quarter: July August September 575 460 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 54 percent is collected in the month of the sale, 39 percent is collected during the following month, and 7 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. Total Cash Receipts August September
13 ភ E8-11 (Algo) Calculating Cash Receipts [LO 8-4] Shadee Corp. expects to sell 540 sun visors in May and 400 in June. Each visor sells for $17. Shadee's beginning and ending finished goods inventories for May are 85 and 55 units, respectively. Ending finished goods inventory for June will be 55 units. It expects the following unit sales for the third quarter: July August September 500 490 420 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 36 percent is collected during the following month, and 14 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. (Do not round your intermediate calculations. Round your answers to the nearest whole dollar.) Answer is complete but not entirely correct. Total Cash Receipts $ August September 7,863 $ 6,740
The management of Kirkut Enterprises prepared the following forecasted total sales schedule for the five months ending December 2021 August September October November December R310 000 R330 000 R325 000 R340 000 R410 000 Additional information: Cash sales comprise 40% of total sales. These customers are entitles to a 4% discount. Credit sales are collected as follows: 40% in the month of sale - these customers get a 2% discount 55% in the month after the sale 5% is written off as bad debts Cash receipts for cash sales made for the period August to December will total: O A. R686 000 O B. R1 715 000 O C. R658 560 D. R1 646 400

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