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 3 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%.
1. ABC Company has the following sales budget for the last six months of 2020:
July $9,000
August $8,000
September $11,000
October $9,000
Historically, the cash collection of sales has been as follows:
35% of sales collected in the month of sale,
45% of sales collected in the month...
Now that a business has prepared it budget for the next three months, and the budget...
Now that a business has prepared it budget for the next three
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large total cash payments in the month than the total cash
receipts) in the second month.What actions should the managers take
when he is presented with this information?
What actions should the managers make if in the third month,
there will be a cash...
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
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96,380
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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....
Colter Company prepares monthly cash budgets. Relevant data from
operating budgets for 2020 are as follows.
January
February
Sales
$435,600
$484,000
Direct materials purchases
145,200
151,250
Direct labor
108,900
121,000
Manufacturing overhead
84,700
90,750
Selling and administrative expenses
95,590
102,850
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....
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....
Colter Company prepares monthly cash budgets. Relevant data from
operating budgets for 2020 are as follows.
January
February
Sales
$399,600
$444,000
Direct materials
purchases
133,200
138,750
Direct labor
99,900
111,000
Manufacturing
overhead
77,700
83,250
Selling and
administrative expenses
87,690
94,350
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...
Jackson company manufacture products and has prepared a monthly budget based on 10,000 units (produced and...
Jackson company manufacture products and has prepared a monthly
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Labour
(2 DLH x $11)
$22
Materials
0.5kg x $30/kg
$15
Fixed overhead
$10
Selling price
$65
In January, 9,000 units were produced and sold. The actual
budget for January is shown below:
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$594,000
Labour
18,900 hours
$226,800
Material
4,700kg
$131,600
Fixed overhead
$92,000
Profit
$143,600
A) Calculate all the variances (DM price variance, DM material
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The ending inventory of finished units
available for sale is to be maintained at 25% of the next month's
estimated sales. On April 1, there were 12,000 units on hand. There
is no work in process at the end of any month. Each unit of
finished product requires...
Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020,...
Pro Sports Inc. manufactures basketballs for professional
basketball associations. For the first six months of 2020, the
company reported the following operating results while operating at
90% of plant capacity:
Amount
Per Unit
Sales
$5,616,000
$52.00
Cost of goods sold
3,672,000
34.00
Selling and administrative expenses
486,000
4.50
Net income
$1,458,000
$13.50
Fixed costs for the period were cost of goods sold of $1,080,000,
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In July, normally a slack manufacturing month, Pro Sports...
Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020,...
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Amount
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Sales
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$51.00
Cost of goods sold
3,591,000
35.00
Selling and administrative expenses
451,440
4.40
Net income
$1,190,160
$11.60
Fixed costs for the period were cost of goods sold of $1,026,000,
and selling and administrative expenses of $184,680.
In July, normally a slack manufacturing month, Pro Sports...
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