Tyler Corp has the following budgeted sales for the first 4 months of next year: January $80,000 $350,000 February $60,000 $200,000 March April $45,000 $130,000 Cash sales $50,000 Credit sales $145,000 Total sales $430,000 $260,000 $195,000 $175,000 The Company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the following information has been assembled: Collections on credit sales: Month of sale 60% Month after sale 30% 2nd month after sale 10% The accounts receivable balance on January 1 is: Of this amount, $132,000 represents uncollected December sales and $23,000 represents uncollected November $155,000 sales. 12 The total cash collected in January would be: $412,000 А. В. $445,000 с. $389,000 $346,000 E. None of the above D.
Tyler Corp has the following budgeted sales for the first 4 months of next year: January $80,000 $350,000 February $60,000 $200,000 March April $45,000 $130,000 Cash sales $50,000 Credit sales $145,000 Total sales $430,000 $260,000 $195,000 $175,000 The Company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the following information has been assembled: Collections on credit sales: Month of sale 60% Month after sale 30% 2nd month after sale 10% The accounts receivable balance on January 1 is: Of this amount, $132,000 represents uncollected December sales and $23,000 represents uncollected November $155,000 sales. 12 The total cash collected in January would be: $412,000 А. В. $445,000 с. $389,000 $346,000 E. None of the above D.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Tyler Corp has the following budgeted sales for the first 4 months of next year:
January
$80,000
February
$60,000
March
$50,000
April
$45,000
Cash sales
Credit sales
$350,000
$200,000
$145,000
$130,000
Total sales
$430,000
$260,000
$195,000
$175,000
The Company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the
following information has been assembled:
Collections on credit sales:
Month of sale
60%
Month after sale
30%
2nd month after sale
10%
The accounts receivable balance on January 1 is:
Of this amount, $132,000 represents uncollected December sales and $23,000 represents uncollected November
$155,000
sales.
12 The total cash collected in January would be:
$412,000
A.
В.
$445,000
C.
$389,000
D.
$346,000
E. None of the above
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