FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Harbour Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales on account are budgeted to be $246,000 for September and $284,000 for October, what are the budgeted cash receipts from sales on account for October?
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- Mitchell Company had the following budgeted sales for the first half of next year: The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Assume that the accounts recelvable balance on January 1 was $76,000. Of this amount, $60,000 represented uncollected December sales and $16,000 represented uncollected November sales. Glven these data, the total cash collected during January would be: Multiple Choice $138.000 $100,000 $196,000 $197,000arrow_forwardSchuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,800 units are planned to be sold in March. The variable selling and administrative expense is $4.30 per unit. The budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2.700 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: Multple Choice $32,920 $7740 $40.660 $43.360 4:32 PM 92°F AQI 61 9/30/2021 21 - here to search DELL PgUp PgDn Home F10 F11 F12 PrtScr Insert Delete F7 F8 F9 F3 F4 F5 F6 Numarrow_forwardSchuepfer Incorporated bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,900 units are planned to be sold in March. The variable selling and administrative expense is $4.80 per unit. The budgeted fixed selling and administrative expense is $35,690 per month, which includes depreciation of $3,400 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: Multiple Choice $44,810 $41,410 $32,290 $9,120arrow_forward
- Company L charges all operating expenses to credit. They pay 70% of their accounts payable in the month following the expense, and 30% two months following the expense. Expenses (all paid for on credit) for the last three months have been provided below: August: $80,000 September: $120,000 October: $94,000 What is the budgeted cash outflow for October?arrow_forwardThe Panda Company has budgeted its activity for October according to the following information: Sales are budgeted at $392,000 and all sales are for cash. All purchases of merchandise inventory are for cash. Merchandise inventory was $150,000 on September 30 and the planned merchandise inventory on October 31 is $140,000. All merchandise is sold at 40% above cost. The selling and administrative expenses are budgeted at $92,000 for the month. All of these expenses are paid for in cash except for depreciation of $12,000. What is the budgeted net income for October?arrow_forwardBig Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $20,800 for March and $65,700 for April. What are the budgeted cash receipts from sales on account for April?arrow_forward
- Getty Company expects sales for the first three months of next year to be $185,000, $235,000 and $310,000, respectively. Getty expects 30 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent in the month of the sale and 90 percent in the following month. Compute a schedule of Getty's cash receipts for the months of February and March. February March Budgeted cash receipts $ 250,000arrow_forwardDetermine the anticipated total cash receipts for the month of January for Madison Co. in preparing a Cash Budget, given the following info: Accounts Receivable balance as of January 1 $296,000.00 Budgeted Sales for January = $860,000.00 Madison Co. assumes all monthly sales are on account. And that 75% of the sales on account will be collected in the month of the sale, and that the remainder will be collected the following month. $688,000.00 $812,000.00 $941,000.00 O $468,000.00arrow_forwardSchuepfer Incorporated bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,500 units are planned to be sold in March. The variable selling and administrative expense is $4.00 per unit. The budgeted fixed selling and administrative expense is $35,850 per month, which includes depreciation of $5,000 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: Multiple Choice $49,850 $44,850 $30,850 $14,000arrow_forward
- 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. $274,820arrow_forwardKingston budgets total sales for June and July of $430,000 and $338,000, respectively. Cash sales are 65% of total sales. Of the credit sales, 25% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 10% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company’s budgeted balance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31. As of July 31 Sales month Total Sales Credit Sales Percent Uncollected Amount Uncollected June $430,000 July 338,000 Totalarrow_forwardMcMichael Inc. collects 90% of its sales on account in the month of the sale and 10% in the month following the sale. If sales on account are budgeted to be $495,000 for September and $431,000 for October, what are the budgeted cash receipts from sales on account for October?$arrow_forward
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