Question
Sweeney Corporation has found that 80% of its sales in any given month are credit sales,...
Sweeney Corporation has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Sweeney Corporation has experienced the following collection pattern:
|
25% received in the month of the sale |
|
|
50% received in the month after the sale |
|
|
24% received two months after the sale |
|
|
1% of the credit sales are never received |
November sales for last year were $90,000, while December sales were $110,000. Projected sales for the next three months are as follows:
|
January sales. . . . . . . . . . . . . . . . |
$165,000 |
|
February sales. . . . . . . . . . . . . . . |
$115,000 |
|
March sales. . . . . . . . . . . . . . . . . |
$190,000 |
Requirement
Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. (Round your answers to the nearest whole dollar.)
|
Sweeney Corporation |
||
|
Cash Collections Budget |
||
|
For the Months of January through March |
|
January |
|
|
Cash sales |
|
|
Collections on credit sales: |
|
|
25% Month of sale |
|
|
50% Month after |
|
|
24% Two months after |
|
|
Total cash collections |
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
HolidayHoliday Corporation has found that 6060 % of its sales in any given month are credit...
HolidayHoliday
Corporation has found that
6060 %
of its sales in any given month are credit sales, while the
remainder are cash sales. Of the credit sales,
HolidayHoliday
Corporation has experienced the following collection
pattern:
25% received in the month of the sale
50% received in the month after the sale
16% received two months after the sale
9% of the credit sales are never received
November sales for last year were
$ 90 comma 000$90,000 ,
while December sales...
The LaGrange Corporation had the following budgeted sales for the first half of the current year:...
The LaGrange Corporation had the following budgeted sales for
the first half of the current year:
Cash Sales
Credit Sales
January
$
70,000
$
170,000
February
$
75,000
$
190,000
March
$
27,000
$
150,000
April
$
22,000
$
107,000
May
$
32,000
$
220,000
June
$
100,000
$
10,000
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...
Swifty Corporation estimates its sales at 140000 units in the first quarter and that sales will...
Swifty Corporation estimates its sales at 140000 units in the
first quarter and that sales will increase by 13000 units each
quarter over the year. They have, and desire, a 25% ending
inventory of finished goods. Each unit sells for $35. 40% of the
sales are for cash. 70% of the credit customers pay within the
quarter. The remainder is received in the quarter following
sale.
Cash collections for the third quarter are budgeted at
On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget...
On March 1 of the current year, Spicer Corporation compiled
information to prepare a cash budget for March, April, and May. All
of the company’s sales are made on account. The following
information has been provided by Spicer’s management.
Month
Credit Sales
January
$
300,000
(actual)
February
400,000
(actual)
March
559,000
(estimated)
April
584,000
(estimated)
May
800,000
(estimated)
The company’s collection activity on credit sales historically
has been as follows.
Collections in the month of the
sale...
In March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget...
In March 1 of the current year, Spicer Corporation compiled
information to prepare a cash budget for March, April, and May. All
of the company’s sales are made on account. The following
information has been provided by Spicer’s management.
Month
Credit Sales
January
$
300,000
(actual)
February
400,000
(actual)
March
593,000
(estimated)
April
503,000
(estimated)
May
800,000
(estimated)
The company’s collection activity on credit sales historically
has been as follows.
Collections in the month of the
sale...
Swifty Corporation estimates its sales at 190000 units in the first quarter and that sales will...
Swifty Corporation estimates its sales at 190000 units in the
first quarter and that sales will increase by 11000 units each
quarter over the year. They have, and desire, a 25% ending
inventory of finished goods. Each unit sells for $25. 40% of the
sales are for cash. 70% of the credit customers pay within the
quarter. The remainder is received in the quarter following
sale.
Cash collections for the third quarter are budgeted at
A. 5250500
B. 3024500
C....
Topez Service anticipates the following sales revenue over a five-month period: November December January February March...
Topez Service anticipates the following sales revenue over a
five-month period:
November
December
January
February
March
Sales Revenue
$16,200
$10,800
$15,400
$12,200
$14,800
The company's sales are 40% cash and 60% credit.
Its collection history indicates that credit sales are collected
as follows:
25% in the month of the sale
50% in the month after the sale
20% two months after the sale
5% are never collected
How much cash will be collected in January? In February? In
March? For...
The LaGrange Corporation had the following budgeted sales for the first half of the current year:...
The LaGrange Corporation had the following budgeted sales for
the first half of the current year: Cash Sales Credit Sales January
$ 40,000 $ 140,000 February $ 45,000 $ 160,000 March $ 42,000 $
120,000 April $ 37,000 $ 122,000 May $ 47,000 $ 190,000 June $
70,000 $ 160,000 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 March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget...
On March 1 of the current year, Spicer Corporation compiled
information to prepare a cash budget for March, April, and May. All
of the company’s sales are made on account. The following
information has been provided by Spicer’s management.
Month
Credit Sales
January
$
300,000
(actual)
February
400,000
(actual)
March
428,000
(estimated)
April
805,000
(estimated)
May
800,000
(estimated)
The company’s collection activity on credit sales historically has
been as follows.
Collections in the month of the sale...
The following is the sales budget for the given months of Hecto, Ltd.: Cash Sales Credit...
The following is the sales budget for the given months of Hecto,
Ltd.:
Cash Sales
Credit Sales
May
$59,000
$283,000
June
$43,000
$236,000
July
$33,000
$205,000
August
$47,000
$268,000
September
$46,000
$197,000
Additional information to be used determining the expected cash
collections each month that will be used in preparing the cash
budget:
Collections on Credit sales:
50% in month of sale
20% in month following sale
30% in second month following sale
The Accounts Receivable balance on May 1...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 4 minutes ago
asked 7 minutes ago
asked 9 minutes ago
asked 12 minutes ago
asked 15 minutes ago
asked 32 minutes ago
asked 36 minutes ago
asked 48 minutes ago
asked 52 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago