Question

Magna Corporation has prepared the following sales budget: Month Cash Sales Credit Sales Jan $16,000 $68,000 Feb 20,000 80,00
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Schedule of Cash Collections for March through May:

March April May
Credit sales $74000 $92000 $76000
Cash collections
Cash sales $18000 $24000 $22000
Collection of january credit sales(68000×10%) $6800 - -
Collection of february credit sales(80000×45%;80000×10%) $36000 $8000 -
Collection of march credit sales(74000×40%;74000×45%;74000×10%) $29600 $33300 $7400
Collection of April credit sales(92000×40%;92000×45%) - $36800 $41400
Collection of May Credit sales(76000×40%) - - $30400
TOTAL CASH COLLECTIONS $90400 $102100 $101200

*Cash has been collected as follows

- 40% of credit sales in the month of sale.

- 45% of credit sales in the following month of sale.

- 10% of credit sales after two months following the sale.

_____×_____

Kindly Upvote, All the best,

HAPPY CHEGGING.

Add a comment
Know the answer?
Add Answer to:
Magna Corporation has prepared the following sales budget: Month Cash Sales Credit Sales Jan $16,000 $68,000...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • I am not understanding how to break these figures down quarterly. The examples in the textbook...

    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...

  • 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...

    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.

  • Three Brothers Moving prepared the following sales budget: Month Cash Sales Credit Sales March $20,000 $10,000...

    Three Brothers Moving prepared the following sales budget: Month Cash Sales Credit Sales March $20,000 $10,000 April $36.000 $16,000 May $52,000 $30,000 Jung $60.000 $46.0od Credit collections are 40% in the month of sale, 50% in the month following the sale, and 5% two months following the sale. The remaining 5% is expected to be uncollectible. What are the total cash collections in May at Three Brothers Moving? 572,500 557.800 562.400 555.750

  • Two Brothers Moving prepared the following sales budget: Month Cash Sales Credit Sales March $21,000 $11,000...

    Two Brothers Moving prepared the following sales budget: Month Cash Sales Credit Sales March $21,000 $11,000 pri: April $30,000 $12,000 na May $42,000 $37.000 $1 June $55,000 $53,000 tion: Credit collections are 25% in the month of sale, 60% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be solu uncollectible. What are the total cash collections in May at Two Brothers Moving? Sh dis hedule A $60,550 DADIN O...

  • Norman Corp. has prepared the sales budget. The expected sales are as follows: $84,000 for March,...

    Norman Corp. has prepared the sales budget. The expected sales are as follows: $84,000 for March, $100,000 for April, $92,000 for May, $116,000 for June, and $98,000 for July. Credit sales are 80% of total sales, and cash sales are remaining 20%. Collections of account receivables are 80% in the month of sale (and subject to 1% discount), 15% in the month following the sale. The remaining 5% is expected to be uncollectible. (a) Prepare a schedule of cash collections...

  • Feeney Furniture prepared the following sales budget: Month Cash Sales Credit Sales March $23,000 $12,000 April...

    Feeney Furniture prepared the following sales budget: Month Cash Sales Credit Sales March $23,000 $12,000 April $37,000 $12,000 May $40,000 $39,000 June $54,000 $46,000 Credit collections are 10% two months following the sale, 55% in the month following the sale, and 30% in the month of sale. The remaining 5% is expected to be uncollectible What are the total cash collections in June at Feeney Furniture? O A $36,450 OB. $100,000 OC. $90,450 OD. $29,650

  • Prepare cash budget using following information: Sales Jan      80,000   Feb      75,000   Mar      92,000  ...

    Prepare cash budget using following information: Sales Jan      80,000   Feb      75,000   Mar      92,000   April      88,000   May      76,000   June      81,000   The selling price was set to offer 15% margin on the purchase price of the goods. The company has a policy to keep a monthly closing balance of inventory as 50% of the requirement of the next month. Beginning inventory for the month of Jan is $43,500 and ending inventory of June is $39,200. The...

  • Cash Receipts The sales budget for Andrew Inc. is forecasted as follows: Month Sales Revenue May...

    Cash Receipts The sales budget for Andrew Inc. is forecasted as follows: Month Sales Revenue May $ 150.000 June 175,000 July 160,000 August 200.000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales • 60 percent in the month of sale. • 20 percent in the month following sale. • 15 percent in the second month following sale. • 5 percent uncollectible....

  • Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May...

    Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May $140,000 June 140,000 July 180,000 August 120,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: 60 percent in the month of sale. 20 percent in the month following sale. 15 percent in the second month following sale. 5 percent uncollectible. The company gives a 1...

  • Auni Bhd has a cash balance of RM 27,000 at the beginning of March. Month Cash...

    Auni Bhd has a cash balance of RM 27,000 at the beginning of March. Month Cash Credit Purchases Salaries Fixed Sales Sales Overhead (RM) (RM) (RM) (RM) (RM) Jan 74,000 55,200 9,000 30,000 Feb 82,000 61,200 9,000 30,000 March 20,000 80,000 60,000 9,500 30,000 April 22,000 90,000 69,000 9,500 32,000 May 25,000 100,000 75,000 10,000 32,000 Additional information: Creditors are given one month credit for payment. Salaries are paid in the current month. Fixed costs are paid one month in...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT