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
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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
- 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
Required:
Prepare the following schedules:
- Expected cash collections during November
- Expected cash disbursements during November
- Expected cash balance during November
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