Question:Beginning cash balance on July 1: $30,000.
Cash receipts from sales: 30% is collected in the...
Question
Beginning cash balance on July 1: $30,000.
Cash receipts from sales: 30% is collected in the month of
sale, 50% in the next month, and 20% in the second month after sale
(uncollectible accounts are negligible and can be ignored). Sales
amounts are: May (actual), $1,032,000; June (actual), $720,000; and
July (budgeted), $840,000.
Payments on merchandise purchases: 60% in the month of purchase
and 40% in the month following purchase. Purchases amounts are:
June (actual), $258,000; and July (budgeted), $600,000.
Budgeted cash payments for salaries in July: $126,600.
Budgeted depreciation expense for July: $7,200.
Other cash expenses budgeted for July: $90,000.
Accrued income taxes due in July: $80,000.
Bank loan interest paid in July: $3,960.
Additional Information:
Cost of goods sold is 44% of sales.
Inventory at the end of June is $48,000 and at the end of July
is $278,400.
Salaries payable on June 30 are $30,000 and are expected to be
$24,000 on July 31.
The equipment account balance is $960,000 on July 31. On June
30, the accumulated depreciation on equipment is $168,000.
The $3,960 cash payment of interest represents the 1% monthly
expense on a bank loan of $396,000.
Income taxes payable on July 31 are $99,456, and the income tax
rate is 40%.
The only other balance sheet accounts are: Common Stock, with a
balance of $328,000 on June 30; and Retained Earnings, with a
balance of $643,200 on June 30.
Prepare a budgeted income statement for the month of July and a
budgeted balance sheet for July 31.
Beginning cash balance on July 1: $30,000.
Cash receipts from sales: 30% is collected in the...
Calculation of Cash Receipts From Sales Collected in-- Total Sales May June July 31 Accounts Rec. July Credit sales from: May $ June 1,032,000 720,000 840,000 2,592,000 July Totals $ EA 0 $ 0 $ 0 $ 0 Calculation of Cash Payments for Merchandise --Paid in July 31 Total Purchases June July Accounts Pay. Purchases from: June $ July 258,000 600,000 858,000 Totals $ $ 0 $ 0 $ 0
Following information relates to Acco Co.
Beginning cash balance on July 1: $30,000.
Cash receipts from sales: 27% is collected in the month of
sale, 50% in the next month, and 23% in the second month after sale
(uncollectible accounts are negligible and can be ignored). Sales
amounts are: May (actual), $1,032,000; June (actual), $720,000; and
July (budgeted), $840,000.
Payments on merchandise purchases: 54% in the month of purchase
and 46% in the month following purchase. Purchases amounts are:
June...
Following information relates to Acco Co.
Beginning cash balance on July 1: $30,000.
Cash receipts from sales: 27% is collected in the month of
sale, 50% in the next month, and 23% in the second month after sale
(uncollectible accounts are negligible and can be ignored). Sales
amounts are: May (actual), $1,032,000; June (actual), $720,000; and
July (budgeted), $840,000.
Payments on merchandise purchases: 54% in the month of purchase
and 46% in the month following purchase. Purchases amounts are:
June...
o. Beginning cash balance on July 1: $30,000. b. Cash receipts from sales: 27% is collected in the month of sale, 50% in the next month, and 23% in the second month after s (uncollectible accounts are negligible and can be ignored) Sales amounts are: May (actual). $1,032.000; June (actual). $720 and July (budgeted). $840.000 c. Payments on merchandise purchases: 54% in the month of purchase and 46% in the month following purchase, purchases a are: June (actua). $258,000: and...
Following information relates to Acco Co. a. Beginning cash balance on July 1: $35,000. b. Cash receipts from sales: 24% is collected in the month of sale, 50% in the next month, and 26% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,204,000; June (actual). $840,000; and July (budgeted), $980,000. c. Payments on merchandise purchases: 48% in the month of purchase and 52% in the month following purchase. Purchases...
Following information relates to Acco Co. a. Beginning cash balance on July 1: $35,000. b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,204,000: June (actual). $840,000; and July (budgeted) $980,000. c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases...
Following information relates to Acco Co. a. Beginning cash balance on July 1: $35,000. b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,204,000: June (actual). $840,000; and July (budgeted) $980,000. c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases...
Following information relates to Acco Co.
Beginning cash balance on July 1: $50,000.
Cash receipts from sales: 30% is collected in the month of
sale, 50% in the next month, and 20% in the second month after sale
(uncollectible accounts are negligible and can be ignored). Sales
amounts are: May (actual), $1,720,000; June (actual), $1,200,000;
and July (budgeted), $1,400,000.
Payments on merchandise purchases: 60% in the month of purchase
and 40% in the month following purchase. Purchases amounts are:
June...
Following information relates to Acco Co.
Beginning cash balance on July 1: $50,000.
Cash receipts from sales: 27% is collected in the month of
sale, 50% in the next month, and 23% in the second month after sale
(uncollectible accounts are negligible and can be ignored). Sales
amounts are: May (actual), $1,720,000; June (actual), $1,200,000;
and July (budgeted), $1,400,000.
Payments on merchandise purchases: 54% in the month of purchase
and 46% in the month following purchase. Purchases amounts are:
June...
Following information relates to Acco Co. a. Beginning cash balance on July 1: $50,000. b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are May (actual), $1,720,000; June (actual), $1,200,000; and July (budgeted), $1,400,000. c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases...
Following information relates to Acco Co. Beginning cash balance
on July 1: $40,000. Cash receipts from sales: 30% is collected in
the month of sale, 50% in the next month, and 20% in the second
month after sale (uncollectible accounts are negligible and can be
ignored). Sales amounts are: May (actual), $1,376,000; June
(actual), $960,000; and July (budgeted), $1,120,000. Payments on
merchandise purchases: 60% in the month of purchase and 40% in the
month following purchase. Purchases amounts are: June...