Question
In: Finance
Elias Company has prepared a budget for the first six months of 2020. Monthly budgets for...
Elias Company has prepared a budget for the first six months of
2020. Monthly budgets for revenues are provided at left. Experience
indicates that Elias will collect 75% of sales in the month of
sale, 15% in the month following the sale, and 7.5% in the second
month after the sale. The remaining 2.5% of sales are expected to
be uncollectible.
Prepare a cash collections budget
for Elias for the months of March, April, and May
2020. Show your work.
| Revenues budget: | |
| January | 8,537,500 |
| February | 9,748,615 |
| March | 10,250,324 |
| April | 8,904,561 |
| May | 12,358,975 |
| June | 14,548,289 |
| 64,348,264 | |
| Collections experience: | |
| Month of sale | 75.0% |
| Month after sale | 15.0% |
| 2 months after sale | 7.5% |
| Uncollectible | 2.5% |
| 100.0% | |
Please so some calculations, I'm having difficulty trying to follow just numbered answers.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
ABC Company has the following sales budget for the last six months of 2020:
Note: Not all sales are always collected. Remember Bad Debt Expense. So don’t worry if the problems do not add up to 100%.
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July $9,000
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October $9,000
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February
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146,400
152,500
Direct labor
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Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows....
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operating budgets for 2020 are as follows.
January
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Sales
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Direct materials purchases
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Direct labor
108,900
121,000
Manufacturing overhead
84,700
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direct materials purchases...
Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows....
Colter Company prepares monthly cash budgets. Relevant data from
operating budgets for 2020 are as follows.
January
February
Sales
$439,200
$488,000
Direct materials purchases
146,400
152,500
Direct labor
109,800
122,000
Manufacturing overhead
85,400
91,500
Selling and administrative
expenses
96,380
103,700
All sales are on account. Collections are expected to be 50% in the
month of sale, 30% in the first month following the sale, and 20%
in the second month following the sale. Sixty percent (60%) of
direct materials purchases...
Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows....
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Direct materials
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133,200
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Direct labor
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111,000
Manufacturing
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77,700
83,250
Selling and
administrative expenses
87,690
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month of sale, 30% in the first month following the sale, and 20%
in the second month following the sale. Sixty percent (60%) of
direct materials purchases...
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