Question

Use the information below for Finch Company to answer the question that follow.

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

	April	May	June
Manufacturing costs (1)	$156,800	$194,400	$208,200
Insurance expense (2)	1,010	1,010	1,010
Depreciation expense	1,910	1,910	1,910
Property tax expense (3)	530	530	530

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month.
(2) Insurance expense is $1,010 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October).
(3) Property tax is paid once a year in November.

The cash payments expected for Finch Company in the month of April are

a.$138,715

b.$117,600

c.$156,800

d.$120,630

Use the information below for Nuthatch Corporation to answer the question that follow.

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business—September, October, and November—are $249,000, $315,000, and $425,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

The cash collections expected in September from accounts receivable are estimated to be

a.$174,300

b.$249,000

c.$298,800

d.$139,440

Last one that Im stuck with. Thank you

Woodpecker Co. has $310,000 in accounts receivable on January 1. Budgeted sales for January are $961,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are

a.$1,078,800

b.$647,280

c.$1,388,800

d.$863,040

Answer 1

Cash payments in April Manufacturing Costs Insurance Expenses Cash payments in April $ $ $ 1,17,600 156800*3/4 3,030 1010*3 1,20,630 Answer: Option D Cash collections from Accounts Receivable Cash sales of September $ 74,700 249000*30% Credit sales of September $ 1,74,300 249000*70% Answer:Option A Cash collections in January Beginning Accounts Received Cash sales of January Credit Sales of January Cash collections in January | $ $ $ $ 3,10,000 Given 1,92,200 961000*20% 5,76,600 961000*80%*75% 10,78,800 Answer:Option A