Question

4. The Khaki Company has the following budgeted sales data: January February March April Credit Sales...

4. The Khaki Company has the following budgeted sales data: January February March April Credit Sales $350,000 $320,000 $400,000 $360,000 Cash Sales $70,000 $90,000 $80,000 $70,000 The regular pattern of collection of credit sales is 30% in the month of sales, 25% in the month following sales, and the remainder in the second month following the month of sale. There are no bad debts. Required: a. Determine budgeted cash receipts for April. b. Determine budgeted accounts receivable balance on March 31,

Homework Answers

Answer #1

a.

Schedule of Budgeted Cash Collection For April
Cash sales 70,000
Cash collection from February credit sale (320,000 x 45%) 144,000
Cash collection from March credit sale (400,000 x 25%) 100,000
Cash collection from April credit sale (360,000 x 30%) 108,000
Total cash receipts $422,000

budgeted cash receipts for April = $422,000

b.

Accounts receivable on March 31= 45% of credit sales of February + 70% of Credit sales of March

= 320,000 x 45% + 400,000 x 70%

= 144,000+280,000

= $424,000

Know the answer?
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
Similar Questions
The following credit sales are budgeted by ELO Company: January $51,000   February   $75,000   March $105,000 April...
The following credit sales are budgeted by ELO Company: January $51,000   February   $75,000   March $105,000 April $90,000   The company’s past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is: $84,000.   $90,000.   $88,200. $92,580.  
Month    Budgeted Cash Sales Budgeted Credit Sales Budgeted Cash Purchases Budgeted Credit Purchases December 8,000 21,000...
Month    Budgeted Cash Sales Budgeted Credit Sales Budgeted Cash Purchases Budgeted Credit Purchases December 8,000 21,000 January 9,000 23,000 February 11,000 25,000 March 77,800 12,000 12,000 22,000 March 68,500 12,500 12,500 23,500 May 72,000 12,300 12,300 24,500 Wages & other operating expenses are estimated as follows: Month Wages Other Expenses March 20,000 28,000 April 17,500 22,000 May 20,000 23,000  Newequipment purchased in February for $16,750 istobepaid forin April.  New furniture purchased in March for $15,000 isto be paid...
The LaPann Company has obtained the following sales forecast data: July August September October Cash Sales...
The LaPann Company has obtained the following sales forecast data: July August September October Cash Sales $80,000 $70,000 $50,000 $60,000 Credit Sales $240,000 $220,000 $180,000 $200,000 The regular pattern of collection of credit sales is 30% in the month of sale and 70% in the month following the month of sale.  There are no bad debts. The budgeted accounts receivable balance on September 30th is: $126,000 $154,000 $161,000 $186,000
he following credit sales are budgeted by Wildhorse Co.: January $330500 February 486000 March 680400 April...
he following credit sales are budgeted by Wildhorse Co.: January $330500 February 486000 March 680400 April 583200 The company’s past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of March is $599920. $544320. $583200. $571540.
The PM Company has planned the following sales for the next three months: January February March...
The PM Company has planned the following sales for the next three months: January February March Budgeted Sales $40,000 $50,000 $70,000 Sales are made 20% for cash and 80% on account (A/R). From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale: 60% First month following sale: 30% Second month following sale: 8% Uncollectible: 2% The following additional information has been provided for March: Inventory purchases (70% paid...
Webster Company has the following sales budget.       January            $200,000             February&nbsp
Webster Company has the following sales budget.       January            $200,000             February           $240,000             March               $300,000             April                  $360,000       Cost of sales is 70% of sales. Sales are collected 40% in the month of sale and 60% in the following month. Webster keeps inventory equal to double the coming month's budgeted sales requirements. It pays for purchases 80% in the month of purchase and 20% in the month after purchase. Inventory at the beginning of January is $190,000.   Webster...
LO 4 Joshua Studios expects the following sales in March, April, and May: Cash Sales Credit...
LO 4 Joshua Studios expects the following sales in March, April, and May: Cash Sales Credit Sales March $55,000 $240,000 April 50,000 250,000 May 75,000 300,000 The controller has determined that the company collects credit sales in the following pattern: 30% in the month of sale, 50% in the first month after sale, 10% in the second month after sale, and 10% uncollectible. How much cash will be collected from customers in May?(a) $ 75,000 (b) $239,000 (c) $290,000 (d)...
Beca Retailers expects credit sales in the next quarter as follows: April $79,100 May 84,800 June...
Beca Retailers expects credit sales in the next quarter as follows: April $79,100 May 84,800 June 101,000 Prior experience has shown that 64 percent of a month’s sales are collected in the month of sale, 20 percent are collected in the month following sale, and the remaining 16 percent are collected in the second month following sale. February and March sales were $82,200 and $110,000, respectively. Estimate budgeted cash receipts for April, May, and June. Collection of credit sales April...
Ridgewood Retailers expects credit sales in the next quarter as follows: April $63,300 May 96,200 June...
Ridgewood Retailers expects credit sales in the next quarter as follows: April $63,300 May 96,200 June 113,000 Prior experience has shown that 61 percent of a month’s sales are collected in the month of sale, 18 percent are collected in the month following sale, and the remaining 21 percent are collected in the second month following sale. February and March sales were $82,200 and $107,000, respectively. Estimate budgeted cash receipts for April, May, and June. Collection of credit sales April...
The Uli Antique Mall budgeted credit sales in the first quarter of 2018 to be as...
The Uli Antique Mall budgeted credit sales in the first quarter of 2018 to be as follows: January $199,000 February 211,000 March 226,000 Credit sales in December 2017 are expected to be $274,000. The company expects to collect 81 percent of a month’s sales in the month of sale and 19 percent in the following month. Estimate cash receipts for each month of the first quarter of 2018. Collection of credit sales January February March Collection of December sales $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • In a survey, 11 people were asked how much they spent on their child's last birthday...
    asked 3 minutes ago
  • Discussion 7.1: Practice Critical Thinking How well do you understand this material? Reading the material is...
    asked 4 minutes ago
  • A credit score measures a​ person's creditworthiness. Assume the average credit score for Americans is 709....
    asked 7 minutes ago
  • A Database Administrator (DBA) is play both managerial role and technical role in a modern organization;...
    asked 22 minutes ago
  • The Federal Election Commission collects information about campaign contributions and disbursements for candidates and political committees...
    asked 22 minutes ago
  • In the week before and the week after a​ holiday, there were 10,000 total​ deaths, and...
    asked 25 minutes ago
  • 1. Identify the vertex of the quadratic equation y=2x2+8x-10. using the formula 2. Write the equation...
    asked 40 minutes ago
  • How well do you understand this material? Reading the material is separate than understanding it; further,...
    asked 43 minutes ago
  • Analyze the behavior of capacitors under steady state direct current and high frequency AC current (500...
    asked 43 minutes ago
  • Traffic on the eastbound approach of a signalized intersection is traveling at 48 km/h, with a...
    asked 1 hour ago
  • Students in a chemistry class convince their teacher to use the following "group grading" scenario. Students...
    asked 1 hour ago
  • The letters of the word "REARRANGE" are randomly rearranged. What is the probability that this rearrangement...
    asked 1 hour ago