Question

Walter Enterprises expects its September sales to be 25% higher than its August sales of $200,000....

Walter Enterprises expects its September sales to be 25% higher than its August sales of $200,000. Purchases were $150,000 in August and are expected to be $170,000 in September. All sales are on credit and are collected as follows: 35% in the month of the sale and 65% in the following month. Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month. The beginning cash balance on September 1 is $7,900. The ending cash balance on September 30 would be:

  • 25,400.

  • $87,900.

  • $62,500.

  • $70,400.

  • $182,900.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer : $70400(explanation below)

Ending Cash balanceSEP 30th calculation

Beginning balance + cash receipts - Cash payment

Beginning balance = $7900

Cash receipts

35% of September sales

September sales = August sales +25%

= $200000+25% = $250000

So , 35% ×$250000 = $87500

65%×august sales

= $200000×65% = $130000

total Cash receipt = $87500+$130000 = $217500

Cash payment

25%×sept purchase

= $170000×25% = $42500

75%×august purchase

= $150000×75% = $112500

total Cash payment = $42500+$112500 = $155000

Therefore

Ending cash balance sept 30th =$7900+$217500 -$155000 = $70400

ending Cash balance = $70400

ALL THE BEST

PLEASE DO SUPPORT US

ANY DOUBT PLEASE COMMENT BELOW

THANK YOU

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Worton Distributing expects its September sales to be 25% higher than its August sales of $153,000....
Worton Distributing expects its September sales to be 25% higher than its August sales of $153,000. Purchases were $103,000 in August and are expected to be $123,000 in September. All sales are on credit and are expected to be collected as follows: 40% in the month of the sale and 60% in the following month. Purchases are paid 20% in the month of purchase and 80% in the following month. The cash balance on September 1 is $13,000. The ending...
Company B is a merchandising Company. Estimated sales for July, August, and September will be $200,000,...
Company B is a merchandising Company. Estimated sales for July, August, and September will be $200,000, $190,000, and $210,000, respectively. Each month’s ending inventory must equal 20% of the cost of next month’s sales. The average gross profit ration is 60%. The company pays for 40% of its merchandise purchase in the month of purchase and the remaining 60% in the month following the purchase. 1. How much is the budgeted merchandise purchase in August? 2. How much is the...
C. The Sun Pacific Company budgeted the following sales: July​​200,000 August​​210,000 September​190,000 Sales in May were...
C. The Sun Pacific Company budgeted the following sales: July​​200,000 August​​210,000 September​190,000 Sales in May were 190,000 and in June 180,000. 60% of sales are cash, 30% of sales are to be collected the next month, and the remaining 10% in 2 months. Budgeted purchases of the required materials for production are: July​​100,000 August​​105,000 September​95,000 Purchases in June were 90,000. 70% of purchases are cash and 30% should be paid the next month. Direct Labor is 35% of purchases Selling...
Cash Budget Background: Sales for July, August, and September are expected to be $200,000, $210,000, and...
Cash Budget Background: Sales for July, August, and September are expected to be $200,000, $210,000, and $190,000, respectively, for Pasta Company. All sales are on account and are collected 50% in the month of the sale and 45% in the following month. The remaining 5% is determined to be uncollectible. Raw materials are purchased one month before being needed, and all purchases and expenses are paid for as incurred. The cash balance at 8/1/2017 is $8750. Activities for the quarter...
ABC Company was organized on August 1 of the current year. Projected sales for the next...
ABC Company was organized on August 1 of the current year. Projected sales for the next three months are as follows: August   $250,000 September     200,000 October     275,000 The company expects to sell 50% of its merchandise for cash. Of the sales on account, 30% are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating cash collections for August, September, and October. ABC Company Schedule of Collections from Sales...
Assume that a company estimates $200,000 sales for the month of September and $240,000 sales for...
Assume that a company estimates $200,000 sales for the month of September and $240,000 sales for the month of October. The company predicts that 60% of the cash from these sales will be collected one month following the sale and the remaining part will be collected two months after the sale. The beginning cash balance for October is forecasted to be $20,000. Each month $80.000 of expense will be incurred. If the minimum cash requirement is $60.000, what would be...
Harrti Corporation has budgeted for the following sales: July $ 448,400 August $ 583,400 September $...
Harrti Corporation has budgeted for the following sales: July $ 448,400 August $ 583,400 September $ 616,700 October $ 891,700 November $ 747,000 December $ 707,000 Sales are collected as follows: 15% in the month of sale; 65% in the month following the sale; and the remaining 20% in the second month following the sale. In Harrti's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?
Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the...
Dove 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 $234,000, $316,000, and $417,000, respectively. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the sale. The cash collections in November are a.$218,925 b.$104,250 c.$394,275 d.$473,130
Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the...
Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $235,000, $320,000, and $426,000, respectively, for September, October, and November. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the sale. The cash collections in November are a.$106,500 b.$223,650 c.$482,580 d.$402,150
Beech’s managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August,...
Beech’s managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $280,000, $300,000, $290,000, and $310,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. 3. Each month’s ending inventory must equal 25%...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT