Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
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Textbook Question
Chapter 6, Problem 20P
Eastern Auto Parts Inc. has 15 percent of its sales paid for in cash and 85 percent on credit. All credit accounts are collected in the following month. Assume the following sales:
Sales in December of the prior year were
Prepare a cash receipts schedule for January through April.
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Eastern Auto Parts Incorporated has 20 percent of its sales paid for in cash and 80 percent on credit. All credit accounts are collected in the following month.
Assume the following sales:
January
$ 82,000
February
72,000
March
117,000
April
62,000
Sales in December of the prior year were $92,000.
Prepare a cash receipts schedule for January through April.
Marlin Company projects the follwoing sales for the first thre months of the year: $11500 in January; $10100 in February and $10400 in March. the company expects 60% of the sales to be cash and the remainder on accounts. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Account Receivable account has a zero on January.
1. Prepare a schedule of cash receipts for Marlin for January, February and March. What is the balance in Accounts Receivable on March 31?
2. Prepare a revised schedule of cash receipts if receipts from sales on account are 70% in the month of the sale, 20% in the following month of the sale and 10% in the second month of the sale. What is the balance in Accounts Receivable on March 31?
Jasper Company has 62% of its sales on credit and 38% for cash. All credit sales are collected in full in the first month following the
sale. The company budgets sales of $522,000 for April, $532,000 for May, and $557,000 for June. Total sales for March are
$304,900.
Prepare a schedule of cash receipts from sales for April, May, and June.
Sales
Cash receipts from:
Accounts receivable
Total cash receipts
JASPER COMPANY
Schedule of Cash Receipts from Sales
April
522,000
May
532,000
June
557,000
Chapter 6 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
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- Jasper Company has 61% of its sales on credit and 39% for cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $519,000 for April, $529,000 for May, and $554,000 for June. Total sales for March are $300,400.Prepare a schedule of cash receipts from sales for April, May, and June.arrow_forwardEastern Auto Parts Inc. has 15 percent of its sales paid for in cash and 85 percent on credit. All credit accounts are collected in the following month.  Assume the following sales:     January $ 85,000 February  75,000 March  120,000 April  65,000  Sales in December of the prior year were $95,000.Prepare a cash receipts schedule for January through April. Eastern Auto Parts Inc. has 15 percent of its sales paid for in cash and 85 percent on credit. All credit accounts are collected in the following month.  Assume the following sales:     January $ 85,000 February  75,000 March  120,000 April  65,000  Sales in December of the prior year were $95,000.Prepare a cash receipts schedule for January through April.   Eastern Auto Parts Inc.  January February March April Sales     Cash receipts:     Cash sales     Prior month's credit sales     Total cash receipts $0 $83,500 $81,750 $111,750arrow_forwardEastern Auto Parts Inc. has 20 percent of its sales paid for in cash and 80 percent on credit. All credit accounts are collected in the following month.  Assume the following sales:     January $ 78,000 February  68,000 March  113,000 April  58,000  Sales in December of the prior year were $88,000.Prepare a cash receipts schedule for January through April.  Eastern Auto Parts Inc.                                        January February March April Sales Cash receipts: Cash sales Prior month's credit salesTotal cash receipts$0$76,000$77,000$102,000arrow_forward
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