Question

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

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Prepare a schedule of cash collections for June, July, & August

June July August
Cash Sales 490000*82% = 401800 515000*82% = 422300 500000*82% = 410000
Collection from credit sales
April Sales 450000*18%*19% = 15390
May sales 465000*18%*36% = 30132 465000*18%*19% = 15903
June Sales 490000*18%*45% = 39690 490000*18%*36% = 31752 490000*18%*19% = 16758
July Sales 515000*18%*45% = 41715 515000*18%*36% = 33372
August sales 500000*18%*45% = 40500
Total cash collection 487012 511670 500630
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
Ebony Co. has forecast sales to be $300,000 in May, $375,000 in June, $475,000 in July...
Ebony Co. has forecast sales to be $300,000 in May, $375,000 in June, $475,000 in July and $600,000 in August. Forty percent of sales are made in cash, the remainder is on account. Credit sales are partially collected in the month of sale, with all collections completed by the end of the month following the sale. The August 31 accounts receivable is budgeted to be $108,000. What are budgeted cash collections for July? a. $389,500 b. $267,000 c. $457,000 d....
ABC Company has budgeted sales for the next six months as follows: Budgeted Sales in Units...
ABC Company has budgeted sales for the next six months as follows: Budgeted Sales in Units March 13,000 units April 27,000 units May 34,000 units June 10,000 units July 48,000 units August 69,000 units ABC Company sells its inventory to customers for $21 per unit. 30% of the company's sales are cash sales and the other 70% of sales are made on account. The sales on account are collected in the pattern: 35% collected in the month of sale 26%...
ABC Company has budgeted sales for the next six months as follows: Budgeted Sales in Units...
ABC Company has budgeted sales for the next six months as follows: Budgeted Sales in Units March 13,000 units April 28,000 units May 36,000 units June 12,000 units July 42,000 units August 69,000 units ABC Company sells its inventory to customers for $20 per unit. 30% of the company's sales are cash sales and the other 70% of sales are made on account. The sales on account are collected in the pattern: 35% collected in the month of sale 26%...
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...
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...
E Company has budgeted sales revenues of $170,000 for May, $215,000 for June, $240,000 for July,...
E Company has budgeted sales revenues of $170,000 for May, $215,000 for June, $240,000 for July, and $160,000 for August. To prepare a cash budget, the company must determine the budgeted cash collections from sales. Generally the trend has been 55 percent collected in the month of sale, 25 percent collected in the month following sale, 18 percent collected in the second month following sale, and 2 percent uncollectible. Also, E Company grants a 2 percent cash discount to customers...
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...
Cruises, Inc. has budgeted sales revenues as follows: June July August Credit Sales $135,000 $135,000 $90,000...
Cruises, Inc. has budgeted sales revenues as follows: June July August Credit Sales $135,000 $135,000 $90,000 Cash Sales 90,000 225,000 195,000 Total Sales $225,00 $380,000 $285,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Cash disbursements were $421,000 for July and $250,500 for August. The company wishes to maintain a minimum cash balance of $50,000 at the end of each...
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...
Aztec Company sells its product for $180 per unit. Its actual and budgeted sales follow. Units...
Aztec Company sells its product for $180 per unit. Its actual and budgeted sales follow. Units Dollars April (actual) 4,500 $ 810,000 May (actual) 2,200 396,000 June (budgeted) 7,500 1,350,000 July (budgeted) 5,000 900,000 August (budgeted) 3,600 648,000 All sales are on credit. Recent experience shows that 30% of credit sales is collected in the month of the sale, 40% in the month after the sale, 29% in the second month after the sale, and 1% proves to be uncollectible....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT