I am not understanding how to break these figures down quarterly. The examples in the textbook are done by quarters byt he assignment is asking for monthly figures: Duffy Corporation has prepared the following sales budget: Month Cash Sales Credit Sales May $16,000 $68,000 June 20,000 80,000 July 18,000 74,000 August 24,000 92,000 September 22,000 76,000 Collections are 40% in the month of sale, 45% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be uncollectible. Required: Prepare a schedule of cash collections for July through September.
Schedule of cash collection
July | August | September | |
Cash sales | 18,000 | 24,000 | 22,000 |
From may credit sales | 68,000 x 10% = 6,800 | 0 | 0 |
From June credit sales | 80,000 x 45% = 36,000 | 80,000 x 10% = 8,000 | 0 |
From July credit sales | 74,000 x 40% = 29,600 | 74,000 x 45% = 33,300 | 74,000 x 10% = 7,400 |
From August credit sales | 0 | 92,000 x 40% = 36,800 | 92,000 x 45% = 41,400 |
From September credit sales | 0 | 0 | 76,000 x 40% = 30,400 |
Total cash collection | $90,400 | $102,100 | $101,200 |
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I am not understanding how to break these figures down quarterly. The examples in the textbook...
Magna Corporation has prepared the following sales budget: Month Cash Sales Credit Sales Jan $16,000 $68,000 Feb 20,000 80,000 March 18,000 74,000 April 24,000 92,000 May 22,000 76,000 Collections are 40% in the month of sale, 45% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be uncollectible. Required: Prepare a schedule of cash collections for March through May,
27) Duffy Corporation has prepared the following sales budget: MonthCash SalesCredit Sales May$16,000$68,000 June20,00080,000 July18,00074,000 August24,00092,000 September22,00076,000 Collections are 40% in the month of sale, 45% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be uncollectible. Required: Prepare a schedule of cash collections for July through September.
25) Perry Company has gathered the following information: April 30, cash balance $90,000 Dividends paid in May$24,000 Cash expenditures in May for operating expenses$73,600 Amortization expense in May$9,000 Cash collections in May$178,000 Merchandise purchases paid in cash in May$112,400 Purchased equipment for cash in May$35,000 Perry desires to keep a minimum cash balance of $20,000. Required: Prepare a cash budget for May, and indicate whether or not Perry meets minimum cash requirements. 26) Berry Company has gathered the following information:...
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ROBLEM 4 (10 pints) The sales budget of Hickory Company for the third quarter of 2018 is as follows: July August September Sales $96,000 $72,000 $108,000 Sales are 20% cash, 80% credit. Cost of goods sold is 70% of total sales. Desired ending inventory for each month is equal to 25% of cost of goods sold for the followil Collections on credit sales are as follows: 50% in the month of sale 30% in...
Multiple Choice
$90,960.
$84,640.
$93,800.
$56,000.
$76,400.
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