Shadee Corporation expects to sell 600 sun shades in May and 450 in June. Eachshades sells for $11. Shadee's beginning and ending finished goods inventories for Mayare 70 and 40 shades, respectively. Ending finished goods inventory for June will be 60shades.It expects the following unit sales for the third quarter:JulyAugust545480September460Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected inthe month of the sale, 36 percent is collected during the following month, and 12 percentis 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 nearestwhole dollar.Total Cash ReceiptsAugustSeptember

The budget is prepared to estimate the requirements for the future period. The cash collection…

Answered: Shadee Corporation expects to sell 600…

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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Alpha CD Company has a sales budget for next month of P150,000. Cost of goods sold is expected to be 40 percent of sales. All goods are purchased in the month used and paid for in the month following purchase. The beginning inventory of merchandise is P5,000, and an ending inventory of P6,000 is desired. Beginning accounts payable is P38,000.For Alpha CD Company, the ending accounts payable should be P39,000. P61,000. P89,000. P91,000.
Gyles Ltd. Expects sales for January and February to be $50,000 and $35,000 respectively. The collection pattern has been 30% of sales is collected in the month of sale and the other 70% collected in the month after sale. In addition, Gyles expects to sell property worth $3,000 in February. Gyles also expects to purchase materials of $15,000 and $8,750 in January and February respectively. Gyles pays 80% of the cost of materials purchased in the month of purchase and the other 20% in the month following the purchase. Direct labour payroll will be $12,500 and other expenditures are budgeted at $24,900. The other expenditures included depreciation of $10,000. If not told otherwise, payments are assumed to be made in the month incurred. On February 1, Gyles Ltd. Had a cash account balance of $1,230. The total cash available for the month of February is: a)$1,230 b)$45,500 c)$49,730 d)$85,000
Ind
Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May $54,000 June 63,000 July 45,000 August $60,000 71,000 75,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 45 percent are collected in the month of sale, 35 percent are collected in the following month, and 10 percent are collected two months after sale. Sales Prepare a monthly cash receipts schedule for the firm for March through August. Simpson Glove Company Cash Receipts Schedule February $ Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts January $ March - $ $ April $ $ May $ $ $ June $ $ July $
Yung Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $892,000 in October, $954,000 in November, $1,040,000 in December, and $928,000 in January. Yung's sales are 25% cash and 75% credit. The company's collection history indicates that credit sales are collected as follows: 20% in the month of the sale 65% in the month after the sale 8% two months after the sale 7% are never collected Requirements 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. 2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar. Yung Reeds Budgeted Cash Collections from Customers For the Months of December and January December Cash sales Collection of credit sales: 20% of current month credit sales 65% of prior month credit sales 8% of credit sales two months ago Total collection of credit sales Total cash collections $ $ 260,000 $ 156,000 465,075 53,520 934,595 $ January…
Danner Inc. has projected sales to be $100,000 in June, $90,000 in July, and $70,000 in August. Danner collects 50% of a month's sales in the month of sale, 30% in the month following the sale, and 18% in the second month following the sale. Cash collections in August would be
Hannon Retailing Company prices its products by adding 30% to its cost. Hannon anticipates sales of $715,000 in July, $728,000 in August, and $624,000 in September. Hannon’s policy is to have on hand enough inventory at the end of the month to cover 25% of the next month’s sales. What will be the cost of the inventory that Hannon should budget for purchase in August?a. $509,600b. $540,000c. $565,000d. $680,000
Campbell Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Campbell expects sales in January year 1 to total $360,000 and to increase 10 percent per month in February and March. All sales are on account. Campbell expects to collect 66 percent of accounts receivable in the month of sale, 22 percent in the month following the sale, and 12 percent in the second month following the sale. Required a. Prepare a sales budget for the first quarter of year 1. b. Determine the amount of sales revenue Campbell will report on the year 1 first quarterly pro forma income statement. c. Prepare a cash receipts schedule for the first quarter of year 1. d. Determine the amount of accounts receivable as of March 31, year 1.
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Jasper Company has 65% of its sales on credit and 35% for cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $531,000 for April, $541,000 for May, and $566,000 for June. Total sales for March are $301,600. Prepare a schedule of cash receipts from sales for April, May, and June. Sales Cash receipts from: Total cash receipts JASPER COMPANY Schedule of Cash Receipts from Sales April May 531,000 541,000 June 566,000
Rocker Company expects to sell 7,000 units for $180 each for a total of $1,260,000 in January and 1,500 units for $190 each for a total of $285,000 in February. The company expects cost of goods sold to average 60% of sale revenue, and the company expects to sell 4,300 units in March for $260 each. Rocker's target ending inventory is $15,000 plus 50% of the next month's cost of goods sold Prepare Rocker's inventory, purchases, and cost of goods sold budget for January and February Rocker Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January February Cost of goods soid Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases Your protection has expire Don't leave your devices exposed to virus Uneretested devices are perfect targets for
College Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,003,000 in September, $2,230,000 in October, $2,376,000 in November, and $2,520,000 in December. College Logos sets its prices to earn an average 30% gross profit on sales revenue. The company does not want inventory to fall below $435,000 plus 15% of the next month's cost of goods sold. Prepare a cost of goods sold, inventory, and purchases budget for the months of October and November. College Logos Cost of Goods Sold, Inventory, and Purchases Budget For the Months of October and November October Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory Purchases November

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