Cash payments in December = (50,000*53%) + (40,000*45%) = 26,500 + 18,000 = 44,500 Option A is the answer |
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Purchases on account are given below: October 30,000 November 40,000 December 50,000 53% of the month's...
1. Saxim Company expects to sell 30,000 units, 40,000 units, and 50,000 units in April, May, and June, respectively. If it has a policy of having 30% of the next month's sales on hand at the end of the month, the number of units to be purchased in May should be: 2. Credit sales for April, May, and June are $40,000, $60,000, and $30,000, respectively. Collection patterns are: 25% of any month's sales are collected the month of sale; 50%...
3) The following information pertains to Amigo Corporation: Month July August September October November December Sales $30,000 34,000 38,000 42,000 48,000 60,000 Purchases $10,000 12,000 14,000 16,000 18,000 20,000 Cash is collected from customers in the following manner: Month of sale 40% Month following sale 40% Two months following sale 20% • 60% of purchases are paid for in cash in the month of purchase, and the other 40% is paid the following month. Required: Complete the cash budget for...
Garda purchased $570,000 of merchandise in August and expects to purchase $790,000 in September. Merchandise purchases are paid as follows: 20% in the month of purchase and 80% in the following month. Compute cash payments for merchandise for September. GARDA Cash payments for Merchandise (Budgeted) For Month Ended September 30 Cash payments for September purchases Cash payments for August purchases Total budgeted cash payments Foyert Corp. requires a minimum $6,300 cash balance. If necessary, loans are taken to meet this...
Preparing a schedule of cash payments for inventory purchases Glendo Grocery buys and sells groceries in a community far from any major city. Travis Glendo, the owner, budgeted the store's purchases as follows: October November December Required purchases (on account) $30,000 $22.500 $40,000 Glendo's suppliers require that 70 percent of accounts payable be paid in the month of purchase. The remaining 30 percent is paid in the month following the month of purchase. Schedule of Cash Payments for Inventory Purchases...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company’s operations: The cash balance on December 1 is $40,000.Actual sales for October and November and expected sales for December are as follows: OctoberNovemberDecemberCash sales$ 65,000$ 70,000$ 83,000Sales on account$ 400,000$ 525,000$ 600,000 Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the...
The following information pertains to Ko Wei Sdn Bhd: Month Sales Purchases RM RM July 30,000 10,000 August 34,000 12,000 September 38,000 14,000 October 42,000 16,000 November 48,000 18,000 December 60,000 20,000 Cash is collected from customers in the following manner: Month of sale (2% cash discount) 30% Month following sale 50% Two months following sale 15% Amount uncollectible 5% 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following...
It is November 1 of Year 1. Sales for Robert Company for November and December of Year 1 and January of Year 2 are forecasted to be as follows: November, 400,000; December 600,000; January, 200,000 If you could explain this step by step it would help me understand how to do these greatly! thank you :) On average, cost of goods sold is 70% of sales. During this period, Robert Company expects inventory levels to remain constant. This means that...
Please answer the question below. Thanks Problem 4 In-tech Corporation's sales and purchases for the last three months are as following: October November December Sales (S) 100,000 90,000 120,000 Purchases (S) 80,000 100,000 75,000 For the next three months, it estimates sales and purchases to be as following: January February March Sales (9) 90.000 80,000 80,000 Purchases (S) 70,000 70,000 70,000 It pays 40 percent of purchases in cash and gets a 4 percent discount. Another 40 percent of purchases...
South Dakota Corporation is preparing its budgets for the upcoming quarter which includes October, November, and December 20x7. t has compiled the attached information to help in this preparation REQUIRED: Using the attached format, prepare a cash budget for South Dakota Corporation for the upcoming quarter, by month and in total. Round all calculations to the nearest whole dollar. SOUTH DAKOTA CORPORATION DATA FOR PREPARING MASTER BUDGET FOR MONTHS OF OCTOBER THROUGH DECEMBER 20X7 (1) Actual sales and purchases for...
Hardy Company's cost of goods sold is consistently 60% of sales. The company plans ending merchandise inventory for each month equal to 20% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 40% of the purchases made during a month is paid for in that month. Another 45% is paid for during the first month after purchase, and the remaining 15% is paid for during the second month after purchase. Expected sales are:...