Living Tanks sell tanks and fish and reptiles throughout Victoria. During March 2022, cash sales were $50481 and$41331 were on credit. Credit sales are collected on average 10% later in the month of the sale, 50% in the month afterthe sale and 40% two months after the sale.What is the total amount of cash collected in May 2022 based on this information? (Show amount to two decimal placesand without, or $ signs) $Answer:

Step 1:Collection pattern for March 2022 credit sales:March 2022 credit sales will be collected as…

Answered: Living Tanks sell tanks and fish and…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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The following information has been presented to you for 2018 by Wonder Projects Limited: September October November Rand Rand Rand Cash revenue 200 000 220 000 240 000 Credit revenue 120 000 180 000 190 000 Purchases (all credit) 130 000 140 000 120 000 Additional information: Collection of credit revenue: 50% in the month of invoice 30% one month after invoice 15% two months after invoice and the balance written off as irrecoverable. Purchases are on credit and are paid for one month after the purchase, less 5% Rent income amounts to R10 000 per The rent will increase by 8% on 1 October 2018. A fixed deposit of R150 000 will mature on 31 October 2018. Interest of R15 000 will also be received on this A new computer will be purchased on 3 September 2018 for R25 000 Salaries amount to R20 000 per A 10% increase will take effect on 1 October 2018. The owner is expected to take R5 000 cash from the business on 20 October…
Sheridan Company provided the following information for the month of October: Beginning cash balance=$34700 Cash receipts=459600 Cas disbursements=486000 Sheridan's policy is to keep a minimum end-of-the-month cash balance of $29300. How much will Sheridan need to borrow during October? $21000 $26400 $8300 $0
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
Q3. Ahmed brothers LLC needs cash disbursement schedule for the month of April, May and June. Use the following information prepare cash disbursement schedule. Sales: February 550,000; March =550,000; April 610,000; May 610,000; June 710,000; Jul 710,000. Sales: February=$500,000; March= $500,000; April = $560,000; May = $610,000; June $650,000; July = $650,00O Purchases: Purchases are calculated as 60% of the next month's sales, 10% of purchases are made in cash, 50% of purchases are paid for 1 month after purchase, and the remaining 40% of purchases are paid for 2 months after purchase. Rent: The firm pays rent of $8,000 per month. Wages and salaries: Base wage and salary costs are fixed at $6,000 per month plus a variable cost of 7% of the curret month's sales. Taxes: A tax payment of $54,500 is due in June. Fixed asset outlays: New equipment costing $75,000 will be bought and paid for in April. Interest payments: An interest payment of $30,000 is due in June. Cash dividends:…
Sales of SEUNGCHEOL Co. for the first 3 months of 2022 are: January – ₱750,000; February – ₱673,800; March – ₱767,450. Sales collection schedule of the company is 60% on the month of sales, 25% next month after sales, and 15% on the second month after sales. How much is the total cash receipts of SEUNGCHEOL Co. in February? ₱730,310 ₱269,520 ₱591,780 ₱300,000
On 1 October 2020, Nduundune had 750,000 in the bank and Sh. 126,000 in hand. During the month he had the following receipts and payments: 1 October Cash sale – receipt Sh.80,000 4 October Payment to supplier Mondo Sh.120,000 Payment of rent Sh.300,000 6 October Payment from credit customer Kapondi Sh.450,000 and Payment from credit customer Bokelo Sh.250,000 10 October Cash sale – receipt Sh. 100,000 Payment to supplier Waswa Sh.500,000 6.October Payment of hire-purchase installment Sh.150,000 17 October Purchase of new machine Sh.1,200,000 19 October Cash sale – receipt Sh.370,000 Cash withdrawn from bank for office use 75,000 20.October Payment from credit customer Moseti Sh.600,000 24 October Payment of fuel bill Sh.175,000 26 October Interest received Sh. 25,000 29 Cash taken from cash till to pay fees for daughter Sh. 25,000 Required: Prepare a two column cashbook and determine bank and cash balances at the end of the month
Westerly Industries has the following financial information. What is its cash conversion cycle? (Hint: Use a 365-day year.) Sales Cost of Goods Sold $150,000 120,000 Accounts Receivable 46,500 Inventory 27,000 Accounts Payable 64,500 The cash conversion cycle is days. (Round to two decimal places.)
Problem Solving. Raymar Alison Trading has the following transactions during the fiscal year 2021. Cash sales 100,0000. Credit Sales 200,000. Total Sales 300,000. Cost of Goods Sold 150,000. Gross Margin 150,000. Beg. Accounts Receivable 25,000. End. Accounts Receivable 15,000. Beg. Inventory 35,000. End. Inventory 25,000. Total Expenses 50,000. 27. What is Days Sales Outstanding? (360 days) * 18 24 36 72
Nonna's Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February? Dec. 2017 Jan. 2018 Feb. 2018 $18,000 $57,000 $75,000 Cash collected $fill in the blank 1
1. Cash at bank on 1 January 2023 amounted to R200 000.2. Projected sales for the first four months of 2023:January R220 000February R600 000March R720 000April R850 000Fifty percent (50%) of the sales are for cash and fifty percent (50%) are on credit. Cash customers are entitled to a 5% cash discount.23. Collection of credit sales:· 60% of the credit sales are collected in the month of the sale.· 30% is collected in the following month and the balance is written off as a bad debt.4. Purchases for the first four months of 2023 are expected to be as follows:January R100 000February R150 000March R160 000April R180 000All purchases are on credit. 50% of the purchases will be paid for in the month of purchase and the remaining 50% in the following month.5. Fixed overheads total R200 000 per year and are paid for equally each month.6. Administrative expenses are paid for in the month in which they are incurred and are estimated at a total of R10 000 per monthAn investment of R200 000…
The following information was able from Acer Corporation’s books: 2022 Purchases Sales July ₱4,000 ₱8,000 August 5,000 9,000 September 6,000 7,000 October 7,000 10,000 Collections from customers are normally 80% in the month of sale, 10% in the month following the sale, and 8% in the second month following the sale. The balance is expected to be uncollectible. Acer takes full advantage of the 2% discount allowed on purchases paid by the tenth of the following month. Purchases for November are budgeted at ₱6,000 for the month of November, inclusive of ₱1,000 depreciation expense. Acer’s cash balance on November 1 was ₱15,000. Required: Prepare the following schedules: Expected cash collections during November Expected cash disbursements during November Expected cash balance during November

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