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WORKING NOTES: 1 | |||||
SCHEDULE OF THE CASH RECEIPT FOR THE MONTH OF JAN , FEB & MAR | |||||
PARTICULARS | JAN | FEB | MAR | ||
Sales | $ 3,00,000 | $ 3,30,000 | $ 3,50,000 | ||
Less: Cash Sales 40% (A) | $ 1,20,000 | $ 1,32,000 | $ 1,40,000 | ||
Credit Sales Balance 60% | $ 1,80,000 | $ 1,98,000 | $ 2,10,000 | ||
10 % Expected to collect in the same month (B) | $ 18,000 | $ 19,800 | $ 21,000 | ||
50% in the month following the sale ('C) | $ 90,000 | $ 99,000 | |||
36% in second month following the sales(D) | $ 64,800 | ||||
Total Cash Collected (A+B+C+D) | $ 1,38,000 | $ 2,41,800 | $ 3,24,800 | ||
WORKING NOTES: 2 | |||||
SCHEDULE OF THE CASH PAYMENT FOR THE MONTH OF JAN , FEB & MAR | |||||
PARTICULARS | JAN | FEB | MAR | ||
Purhcase | $ 60,000 | $ 70,000 | $ 80,000 | ||
Less: Cash Purchases 50% (A) | $ 30,000 | $ 35,000 | $ 40,000 | ||
Credit Purchase balance 50% | $ 30,000 | $ 35,000 | $ 40,000 | ||
40 % Paid in the same month (B) | $ 12,000 | $ 14,000 | $ 16,000 | ||
60% in the month following month of Purchases ("C) | $ 15,000 | $ 17,500 | |||
Total Cash Paid(A+B+C) | $ 42,000 | $ 64,000 | $ 73,500 | ||
SOLUTION: | |||||
HAGEN COMPANY | |||||
EXPECTED COLLECTION FROM CUSTOMERS | |||||
MARCH | |||||
March Cash Sales | $ 1,40,000 | ||||
Collection of March Credit Sales | $ 21,000 | ||||
Collection of February Credit Sales | $ 99,000 | ||||
Collection of January Credit Sales | $ 64,800 | ||||
Total Collection | $ 3,24,800 | ||||
SOLUTION: | |||||
HAGEN COMPANY | |||||
EXPECTED PAYMENT FOR DIRECT MATERIALS | |||||
MARCH | |||||
March Cash Purchases | $ 40,000 | ||||
Payment of March Credit Purchases | $ 16,000 | ||||
Payment of February Credit Purchases | $ 17,500 | ||||
Total Payments | $ 73,500 | ||||
Hagen Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases...
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