Question

Y&Z Co had forecasted sales as follows: -April= $406,000 -May= $452,000 -June= $496,000 Sales are 30%...

Y&Z Co had forecasted sales as follows:

-April= $406,000

-May= $452,000

-June= $496,000

Sales are 30% credit and 70% cash

50% of the credit sales are collected in the month of the sale, 30% in the month following the sale, and 20% in the following month.

Totals sales for the months of February and March were $900,000 with February having $500,000 credit sales and March $400,000

Prepares a sales budget schedule and a cash collections budget schedule for the months of April, May and June

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Prepares a sales budget schedule and a cash collections budget schedule for the months of April, May and June

Sales budget :

April May June Total
Credit Sales 121800 135600 148800 406200
Cash Sales 284200 316400 347200 947800
Total Sales 406000 452000 496000 1354000

Cash collection schedule :

April May June Total
Cash sales 284200 316400 347200 947800
Cash collection from credit sales
February sales 30000 30000
March sales 36000 24000 60000
April sales 60900 36540 24360 121800
May Sales 67800 40680 108480
June Sales 74400 74400
Total 411100 444740 486640 1342480
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
CAT Co. had forecasted sales as follows: -April: $406,000 -May: $452,000 -June: $496,000 Sales are 30%...
CAT Co. had forecasted sales as follows: -April: $406,000 -May: $452,000 -June: $496,000 Sales are 30% credit and 70% cash. 50% of the credit sales are collected in the month of the sale, 30% in the month following the sale, and 20% in the following month. Total sales for the months of February and March were $950,000 with February having $500,000 credit sales and March $400,000. Prepare a sales budget schedule and a cash collections budget schedule for the months...
The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May $130,000 June...
The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May $130,000 June 150,000 July 200,000 August 130,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding the cash collection of sales: 60 percent in the month of sale. 20 percent in the month following sale. 15 percent in the second month following sale. 5 percent uncollectible. The company gives a 2 percent...
Northern Company has budgeted sales for the upcoming months as follows: April     450,000 May     465,000 June    ...
Northern Company has budgeted sales for the upcoming months as follows: April     450,000 May     465,000 June     490,000 July       515,000 August    500,000 Septemeber    475,000 18% percent of the sales are credit sales and the remainder are cash sales. Credit sales are collected 45% in the month of sale, 36% in the month following the sale, and 19% in the second month following the sale. Required: Prepare a schedule of cash collections for June, July, & August
Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May...
Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May $130,000 June 150,000 July 200,000 August 130,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: 60 percent in the month of sale. 20 percent in the month following sale. 15 percent in the second month following sale. 5 percent uncollectible. The company gives a 2...
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...
A company expects that 90% of its sales will be on account and 10% will be...
A company expects that 90% of its sales will be on account and 10% will be in cash. It expects that 60% of its sales on account will be collected in the month of sale, 25% will be collected in the month following the month of sale, and 15% will be collected two months after the month of sale. It expects the following sales. Month Expected sales January $900,000 February $850,000 March $700,000 April $650,000 May $575,000 June $500,000 July...
Ellis Sport Shop projects the following sales: April May June $ 65,000 $ 85,000 $ 105,000...
Ellis Sport Shop projects the following sales: April May June $ 65,000 $ 85,000 $ 105,000 Eighty-five percent of Ellis' sales are on credit with 55 percent of receivables collected in the month after the sale and the rest of receivables collected in the second month after the sale. February sales were $55,000 and March sales were $65,000. In the past Ellis' bad debt percentage has been 0 and is expected to continue. a) Prepare a monthly schedule of cash...
Total sales for April, May, and June are $900,000, $700,000, and $850,000 respectively. Cash sales are...
Total sales for April, May, and June are $900,000, $700,000, and $850,000 respectively. Cash sales are normally 30% of total sales. Of the credit sales, 40% are collected in the same month as the sale, 55% are collected during the first month after the sale, and the remaining 5% are eventually not collected because of bad debts. All bad debts are written off by the end of the second month after the sale. Compute the total amount of cash received...
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below: April May June Total Budgeted sales (all on account) $400,000 $600,000 $190,000 $1,190,000 From past experience, the company has learned that 30% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT