Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Question
Chapter 14, Problem 3E
a)
To determine
Determine the cash receipts and fill the missing amounts.
b)
To determine
Determine the amount of accounts receivable the company reports on the 3rd quarter pro forma
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Exercise 7-3A (Algo) Preparing a schedule of cash receipts LO 7-2
The budget director of Heather's Florist has prepared the following sales budget. The company had $132,600 in accounts receivable
on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale.
Required
a. Complete the schedule of cash receipts by filling in the missing amounts.
b. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet.
Complete this question by entering your answers in the tabs below.
Required A Required B
Complete the schedule of cash receipts by filling in the missing amounts.
Sales Budget
Cash sales
Sales on account
Total budgeted sales
Schedule of Cash Receipts
Current cash sales
Plus: Collections from accounts receivable
$
July
70,000 $
97,000
$ 167,000 $
$
August
70,000 $
+
September
82,000 $
116,000
198,000
82,000
78,000
132,600
$ 210,600
$ 78,000
aw
The budget director of Heather's Florist has prepared the following sales budget. The company had $320,000 in accounts receivable
on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale.
Required
a. Complete the schedule of cash receipts by filling in the missing amounts.
b. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet.
Complete this question by entering your answers in the tabs below.
Required A Required B
Complete the schedule of cash receipts by filling in the missing amounts.
July
August
Sales Budget
Cash sales
Sales on account
Total budgeted sales
Schedule of Cash Receipts
Current cash sales
Plus: Collections from accounts receivable
Total budgeted collections
$
September
62,000 $ 84,000 $
95,000 102,000
$ 157,000 $ 186,000
85,000
124,600
$209,600
$ 382,000 $ 179,000 $ 187,000
Problem 7-17A (Algo) Preparing a sales budget and schedule of cash receipts LO 7-2
Thornton 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. Thornton expects sales in January year 1 to total $400,000 and to increase 20 percent per month in
February and March. All sales are on account. Thornton expects to collect 66 percent of accounts receivable in the month of sale, 24
percent in the month following the sale, and 10 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 Thornton 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.
Complete this question by entering your answers in the tabs below.
Required A Required B…
Chapter 14 Solutions
Survey Of Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - 3.What are the three levels of planning? Explain...Ch. 14 - 4.What is the primary factor that distinguishes...Ch. 14 - 5.What is the advantage of using a perpetual...Ch. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - 8. Ken Shilov, manager of the marketing...Ch. 14 - Prob. 9QCh. 14 - 10.What is the normal starting point in developing...
Ch. 14 - 11. How does the level of inventory affect the...Ch. 14 - 12.What are the components of the cash budget?...Ch. 14 - 13.The primary reason for preparing a cash budget...Ch. 14 - 14.What information does the pro forma income...Ch. 14 - 15.How does the pro forma statement of cash flows...Ch. 14 - Exercise 7-1A Budget responsibility Teresa...Ch. 14 - Exercise 7-2A Preparing a sales budget Parliament...Ch. 14 - Prob. 3ECh. 14 - Exercise 7-4A Preparing sales budgets with...Ch. 14 - Exercise 7-5A Determining cash receipts from...Ch. 14 - Exercise 7-6A Using judgment in making a sales...Ch. 14 - Exercise 7-7A Preparing an inventory purchases...Ch. 14 - Exercise 7-8A Preparing a schedule of cash...Ch. 14 - Exercise 7-9A Determining the amount of expected...Ch. 14 - Exercise 7-10A Preparing inventory purchases...Ch. 14 - Exercise 7-11A Preparing a schedule of cash...Ch. 14 - Prob. 12ECh. 14 - Exercise 7-13A Preparing a cash budget The...Ch. 14 - Exercise 7-14A Determining amount to borrow and...Ch. 14 - Prob. 15ECh. 14 - Problem 7-16A Behavioral impact of budgeting...Ch. 14 - Prob. 17PCh. 14 - Problem 7-18A Preparing an inventory purchases...Ch. 14 - Prob. 19PCh. 14 - Problem 7-21A Preparing a cash budget Fayette...Ch. 14 - Prob. 21PCh. 14 - Problem 7-22A Preparing budgets with multiple...Ch. 14 - Problem 7-23A Preparing a master budget for retail...Ch. 14 - ATC 7-1 Business Applications Case Preparing and...Ch. 14 - ATC7-2 Group Assignment Master budget and pro...Ch. 14 - ATC 7-4 Writing Assignment Continuous budgeting...Ch. 14 - Ethical Dilemma Bad budget system or unethical...
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