July August Budgeted sales (all on account) $ 150,000 $ 200,000 September Total $ 300,000 $ 650,000 Based on the past two years of operations, management expects to collect 50% of a month's sales in the month of sale, 40% In the month following the sale, and the remaining 10% In the second month following the sale. May and June sales totalled $190,000 and $250,000, respectively. The company is not expecting any bad debts. Required: a. Prepare a schedule of expected cash collections from sales, by month and In total, for the three months. Schedule of Expected Cash Collections July August September Total May sales $ ° June sales July sales 0 0 August sales 0 September sales 0 Total cash collections $ 0 $ 0 $ 0 $ 0 b. Compute the accounts receivable balance as of September 30. August sales September sales Total accounts receivable at June 30 $ 0

July August Budgeted sales (all on account) $ 150,000 $ 200,000 September Total $ 300,000 $ 650,000 Based on the past two years of operations, management expects to collect 50% of a month's sales in the month of sale, 40% In the month following the sale, and the remaining 10% In the second month following the sale. May and June sales totalled $190,000 and $250,000, respectively. The company is not expecting any bad debts. Required: a. Prepare a schedule of expected cash collections from sales, by month and In total, for the three months. Schedule of Expected Cash Collections July August September Total May sales $ ° June sales July sales 0 0 August sales 0 September sales 0 Total cash collections $ 0 $ 0 $ 0 $ 0 b. Compute the accounts receivable balance as of September 30. August sales September sales Total accounts receivable at June 30 $ 0

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.
Barnstormer sells airplane accessories for $20 each. It expects sales of 120,000 units in quarter 1 and a 7% increase each subsequent quarter for the next 8 quarters. Prepare a sales budget by quarter for the first year.
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Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbulls policy is to maintain 10 percent of the next months production in inventory at the end of a month. How many wheels should Tram bull purchase during September? a. 195,000 b. 112,500 c. 102,500 d. 410,000
Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance pad the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,000, $37,000, and $39,000, respectively.
The management of Vuti has supplied the following sales amounts for the next five months: January February March April May R60 000 R75 000 R55 000 R65 000 R50 000 Additional information: • Off all sales 35% are cash sales based in value. • Of credit sales 50% is collected within the month of sales. Two-thirds of the credit sales collected within the month of sales receives 2% discount. A further 30% of credit sales is collected in the following month; and the remaining credit sales is collected in the month thereafter. Bad debts amounts to 3% of the credit sales. Required: Prepare a debtor's collection schedule that clearly shows how credit sales for the five months will be collected. NB: Round off calculations to two decimal places and the final amount to the nearest value.
Current Attempt in Progress The management of Riverbed Industries estimates that credit sales for August, September, October, and November will be $575,000, $700,000, $875,000, and $490,000, respectively. Experience has shown that collections are made as follows: In month of sale 25% In first month after sale 60% In second month after sale 10% Determine the collections from customers in October and November. (Do not leave any field blank. Enter O for the amounts.) October November Collections from Customers August Sales September Sales October Sales November Sales 2$ $. Total budgeted collections eTextbook and Media Attempts: 0 of 3 used Submit Answer. Savetor La hp %24 %24
The following forecasted sales pertain to Micah Company: Month Sales April $200,000 May 250,000 June 150,000 July 100,000 Collection pattern:60% in month of sale40% in month following the sale Accounts receivable as of March 31 $35,000 Finished goods inventory as of March 31 4,000 units The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20% of the next month's sales. How many units are expected to be produced in April?
Total sales.............$50,000$60,000$40,000$30,000Total cash receipts in April are expected to be: II. Douglas Company plans to sell 24,000 units of Product A during July and 30,000 units during August. Sales of Product A during June were 25,000 units. Past experience has shown that end-of-month inventory should equal 2,000 units plus 20% of the next month's sales. On June 30 this requirement was met. Based on these data, how many units of Product A must be produced during the month of July?
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Miggy Co. projects the following monthly revenues for next year: 250,000 275,000 300,000 350,000 400,000 100,000 500,000 452,000 450,000 January February July August September March April May October November December 557,000 June 300,000 525,000 Miggy's terms are net 30 days. The company typically receives payment on 80% of sales the month following the sale and 17% is collected two months after the sale. Approximately 3% of sales are deemed bad debt. What amount represents the expected cash collection in the second calendar quarter of next year?
Miggy Co. projects the following monthly revenues for next year: 100,000 July August September 250,000 January February 500,000 452,000 450,000 557,000 300,000 275,000 300,000 March April May October 350,000 November 400,000 June December 525,000 Miggy's terms are net 30 days. The company typically receives payment on 80% of sales the month following the sale and 17% is collected two months after the sale. Approximately 3% of sales are deemed bad debt. What amount represents the expected cash collection in the second calendar quarter of next year? a. 1,405,540 b. 1,293,630 с. 1,320,540 d. 1,234,250