1. Collection for January = (100,000*20%) + (85,000*100%) = 20,000+85,000 = 105,000 Collection for February = (200,000*20%) +(80,000*100%) = 40,000+80,000 = 120,000 Option B is the answer |
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ABC company has budgeted the following sales. January $100,000 February $200,000 Sales (on Income statement) Sales are...
ABC company has budgeted $100,000 of sales for January Sales are 80% cash and 20% on credit Credit sales are collected 100% in the month following the sale A/R at Dec 31 = $15,000 What are the cash collections for January? Select one: O $15,000 none of the answers is correct $95,000 O $100,000 ABC company has budgeted $200,000 of sales for January. Sales are 80% credit and 20% cash Credit sales are collected 100% in the month following the...
ABC company has budgeted the following sales. January February Sales (on Income statement) $100,000 $200,000 Sales are 60% credit and 40% cash Credit sales are collected 30% in the month of sale, 70% in the month following the sale A/R at Dec 31 = $60,000 What are the cash collections for January and February? Select one: $58,000 for January and $158,000 for February $40,000 for January and $80,000 for February $118,000 for January and $158,000 for February none of the...
ABC company has budgeted the following cost of goods sold January Sales (on Income statement) CGS $60,000 If the cost of goods sold is equal to 60 % of sales and the selling price is $10 per unit what are the budgeted sales in dollars and units for each month? Select one: $100,000 and 10,000 units none of these answers is correct $60,000 and 6,000 units $150,000 and 15,000 units ABC company has budgeted the following sales. January February Sales(on...
January February March April May June Cash Credit Sales Sales $ 80,000 $180,000 $ 85,000 $200,000 $ 48,000 $160,000 $ 43,000 $128,000 $ 53,000 $230,000 $110,000 $220,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on sales: 50% in month of sale 40% in month following sale 10% in second month following sale The accounts receivable balance on...
Sarasota Company's budgeted sales and direct materials purchases are as follows. January February March Budgeted Sales $261,300 250,800 344,000 Budgeted D.M. Purchases $39,300 43,300 44,000 Sarasota's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Sarasota's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase,...
Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000 March 92,000 April 79,000 Budget Expenses per Month Wages $15,000 Advertising 12,000 Depreciation 3,000 Other 4 percent of sales Note: All cash expenses are paid as incurred; Collections from sales are 50% in the month of sale and 50% in the month following the sale; December 2014 sales were $110,000. What are the expected total cash receipts for February? $89,000 $118,500 $85,000 $88,500 $80,500
Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000 March 92,000 April 79,000 Budget Expenses per Month Wages $15,000 Advertising 12,000 Depreciation 3,000 Other 4 percent of sales Note: All cash expenses are paid as incurred; Collections from sales are 50% in the month of sale and 50% in the month following the sale; December 2014 sales were $110,000. What is the expected total cash disbursements for expenses in February? $30,000 $30,400 $27,000...
Mitchell Company had the following budgeted sales for the first half of next year: January February March April May June Cash Sales $40.000 $45,000 $47.000 $52,000 $62.000 $70,000 Credit Sales $140.000 $160,000 $120,000 $147,000 $190.000 $370,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on credit sales: 30% in month of sales 135% in month of following sales...
The LaGrange Corporation had the following budgeted sales for the first half of the current year: 3 Cash Credit Sales $ 80,000 $180,000 $ 85,000 $200,000 $ 46,000 $160,000 $ 41,000 $126,000 51,000 $230,000 $110,000 $200,000 Sales January February March April points une Skipped The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled eBook Print Collections on sales 45% in...
Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000 March 92,000 April 79,000 Budget Expenses per Month Wages $15,000 Advertising 12,000 Depreciation 3,000 Other 4 percent of sales Note: All cash expenses are paid as incurred; Collections from sales are 50% in the month of sale and 50% in the month following the sale; December 2014 sales were $110,000. What is the budgeted net operating income for the first quarter of 2015? $140,560...