Question

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 on sales:

50% in month of sale

40% in month following sale

10% in second month following sale

The accounts receivable balance on January 1 of the current year was $65,000, of which $47,000 represents uncollected December sales and $18,000 represents uncollected November sales.

The total cash collected during January by LaGrange Corporation would be:

Homework Answers

Answer #1

Cash collection budget

January

Collection from November sales

$      18,000.00

Collection from December sales

$      37,600.00

Collection from January cash sales

$      70,000.00

Collection from January Credit sales

$      85,000.00

Total cash collection during January

$    210,600.00

Balance of December accounts receivables is $47000, which is 50% of credit sales in December. 40% out of 50% will be collected in January and rest 10% will be collected in February.

Balance of Receivables for the month on November are 10% of uncollected amount of November sales which is fully collected in January.

Total Credit sale sof January is $170000 and 50% of this is collected in January. Rest 50% will be collected in next 2 months.

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 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...
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 $ 49,000 $ 150,000 April $ 44,000 $ 129,000 May $ 54,000 $ 220,000 June $ 100,000 $ 230,000 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...
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 $ 50,000 $ 150,000 February $ 55,000 $ 170,000 March $ 29,000 $ 130,000 April $ 24,000 $ 109,000 May $ 34,000 $ 200,000 June $ 80,000 $ 30,000 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...
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 $ 60,000 $ 160,000 February $ 65,000 $ 180,000 March $ 33,000 $ 140,000 April $ 28,000 $ 113,000 May $ 38,000 $ 210,000 June $ 90,000 $ 70,000 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...
Mitchell Company had the following budgeted sales for the first half of next year:    Cash...
Mitchell Company had the following budgeted sales for the first half of next year:    Cash Sales Credit Sales   January $70,000        $170,000        February $75,000        $190,000        March $32,000        $150,000        April $37,000        $132,000        May $47,000        $220,000        June $100,000        $220,000         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 credit sales:   50% in...
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 $ 60,000 $ 160,000 February $ 65,000 $ 180,000 March $ 44,000 $ 140,000 April $ 39,000 $ 124,000 May $ 49,000 $ 210,000 June $ 90,000 $ 180,000 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...
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: Krepps Corporation produces a single product. Last year, Krepps manufactured 25,000 units and sold 20,000 units. Production costs for the year were as follows: Direct materials $ 180,000 Direct labor $ 120,000 Variable manufacturing overhead $ 210,000 Fixed manufacturing overhead $ 250,000 Sales totaled $850,000 for the year, variable selling and administrative expenses totaled $110,000, and fixed selling and administrative expenses totaled $170,000. There...
Shown below are the budgeted sales for ABC Company for the next six months: Sales for...
Shown below are the budgeted sales for ABC Company for the next six months: Sales for Cash Sales on Account January $15,000 $ 70,000 February $18,000 $ 80,000 March $14,000 $160,000 April $26,000 $120,000 May $18,000 $170,000 June $24,000 $105,000 On average, 35% of the sales on account are collected in the month of sale, 40% are collected in the month following sale, 10% are collected in the second month following sale, and the remaining 15% is collected three months...
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...
Sales on account for the first two months of the current year are budgeted as follows....
Sales on account for the first two months of the current year are budgeted as follows. January $532,000 February 408,000 All sales are made on terms of 2/10, n/30 (2 percent discount if paid in 10 days, full amount by 30 days); collections on accounts receivable are typically made as follows. Collections within the month of sale: Within discount period 60% After discount period 15 Collections within the month following sale: Within discount period 15 After discount period 7 Returns,...