Gallonte Incorporated began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected inthe month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and Junewere $60,000, $100,000, and $70,000, respectively, what were the firm's budgeted collections for the quarter?Multiple ChoiceNone of the answers is correct$141,000$207,000$160,000О$171,000

The objective of the question is to calculate the budgeted collections for the quarter for Gallonte…

Answered: Gallonte Incorporated began operations…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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XYZ company is preparing its cash budget for the first quarter of the year. It has $10,000 in cash at the beginning of the period. Cash collections from customers for the quarter are budgeted at $28,000. Cash payment during the quarter for inventory purchases are budgeted at $25,000. The desired cash balance at the end of the quarter is $9,000. Other operating expenses for the quarter are budgeted at $20,000, which includes $3,000 depreciation. Cash expenses are paid in the month incurred. How much borrowing will the company need during the quarter?Select one:a. $13,000b. $19,000c. None of the given answersd. $5,000e. $16,000
Parvis makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 50% are collected in the first month after sale; and 20% are collected in the second month after sale. If sales for October, November, and December were $78,000, $68,000, and $58,000, respectively, what was the budgeted receivables balance on December 31? Multiple Choice O $67,000 None of the answers is correct. $54,200. $49,600. $40,600
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business September, October, and November are $245,000, $311,000, and $413,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in November from accounts receivable are projected to be: a. $231,280 O b. $187,740 Oc. $329,784 Od. $274,820
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