Question

In: Operations Management

MonetteMonette Corporation has found that 6060?% of its sales in any given month are credit? sales,...

MonetteMonette

Corporation has found that

6060?%

of its sales in any given month are credit? sales, while the remainder are cash sales. Of the credit? sales,

MonetteMonette

Corporation has experienced the following collection? pattern:

25% received in the month of the sale

50% received in the month after the sale

18% received two months after the sale

7% of the credit sales are never received

November sales for last year were

$ 85 comma 000$85,000?,

while December sales were

$ 115 comma 000$115,000.

Projected sales for the next three months are as? follows:

January sales. . . . . . . . . . . . . . . .

$160,000

February sales. . . . . . . . . . . . . . .

$125,000

March sales. . . . . . . . . . . . . . . . .

$165,000

Requirement

Prepare a cash collections budget for the first? quarter, with a column for each month and for the quarter. ?(Round your answers to the nearest whole? dollar.)

Monette Corporation

Cash Collections Budget

For the Months of January through March

January

Cash sales

Collections on credit sales:

25% Month of sale

50% Month after

18% Two months after

Total cash collections

Enter any number in the edit fields and then click Check Answer.

Solutions

Expert Solution

Please find below the respone in images.


Related Solutions

Sesnie Corporation has found that 60​% of its sales in any given month are credit​ sales,...
Sesnie Corporation has found that 60​% of its sales in any given month are credit​ sales, while the remainder are cash sales. Of the credit​ sales, Sesnie Corporation has experienced the following collection​ pattern: 25% received in the month of the sale 50% received in the month after the sale 18% received two months after the sale 7% of the credit sales are never received November sales for last year were $ 80,000​, while December sales were $ 110,000. Projected...
LaChut Corporation has found that 80​% of its sales in any given month are credit​ sales,...
LaChut Corporation has found that 80​% of its sales in any given month are credit​ sales, while the remainder are cash sales. Of the credit​ sales, LaChut Corporation has experienced the following collection​ pattern: 20% received in the month of the sale 40% received in the month after the sale 24% received two months after the sale 16% of the credit sales are never received November sales for last year were $80,000​, while December sales were $110,000. Projected sales for...
LaChutCorporation has found that 80​% of its sales in any given month are credit​ sales, while...
LaChutCorporation has found that 80​% of its sales in any given month are credit​ sales, while the remainder are cash sales. Of the credit​ sales, LaChut Corporation has experienced the following collection​ pattern: 25% received in the month of the sale 50% received in the month after the sale 24% received two months after the sale 1% of the credit sales are never received November sales for last year were $90,000​, while December sales were $125,000. Projected sales for the...
Suppose that the ABC Corporation has a production (and sales) capacity of $1,000,000 per month. Its...
Suppose that the ABC Corporation has a production (and sales) capacity of $1,000,000 per month. Its fixed costs – over a considerable range of volume – are $350,000 per month, and the variable costs are $0.50 per dollar of sales. What is the annual break even chart (D’)? Develop (graph) the break even chart. What would be the effect on D’ of decreasing the variable cost per unit by 25% if the fixed costs thereby increased by 10%? What would...
Aurora Corporation has annual credit sales of $1,200,000 with credit terms of 45 days and an...
Aurora Corporation has annual credit sales of $1,200,000 with credit terms of 45 days and an average collection period of 40 days with no discount. In the current economy Aurora has fallen upon tough times and is looking for ways improve cash flow, so the company is considering a changing their collection policy to 1/10 net 30. They estimate 50% of customers will take advantage of the discount and the average collection period will be 28 days. With the change...
Troy Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales October...
Troy Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales October 40,000 November 70,000 December 50,000 January 60,000 There were 14,000 units of finished goods in inventory at the beginning of October. Plans are to have an inventory of finished product equal to 25 percent of the unit sales for the next month. Five pounds of a single raw material are required for each unit produced. Each pound of material costs $10. Plans are to...
Jones Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales July...
Jones Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales July 35,000 August 20,000 September 30,000 October 25,000 Sales price per unit is $200 Plans are to have an inventory of finished product equal to 30% of the unit sales for the next month. There was 10,500 units in beginning inventory on July 1st. Five pounds of materials are required for each unit produced. Each pound of material costs $10. Inventory levels for materials equal...
ALei Industries has credit sales of $151 million a year. ​ ALei's management reviewed its credit...
ALei Industries has credit sales of $151 million a year. ​ ALei's management reviewed its credit policy and decided that it wants to maintain an average collection period of 40 days. a.  What is the maximum level of accounts receivable that ALei can carry and have 40​-day average collection​ period? b.  If​ ALei's current accounts receivable collection period is 50 ​days, how much would it have to reduce its level of accounts receivable in order to achieve its goal of...
A company had credit sales $30,000 and cash sales of $23,000 during the month of May....
A company had credit sales $30,000 and cash sales of $23,000 during the month of May. Also during​ May, the company paid wages of $24,000 and utilities of $9,000. It also received payments from customers on account totaling $4,400. What was the​company's net income for the​ month? A. 53,000 B. 20,000 C. 86,000 D. 23,000 Which accounts are increased by​ debits? A. Accounts Receivable and Utilities Expense. B. Accounts Payable and Service Revenue. C. Salaries Expense and Common Stock. D....
During the month of June, Sweet Boutique had cash sales of $219,420 and credit sales of...
During the month of June, Sweet Boutique had cash sales of $219,420 and credit sales of $153,382, both of which include the 6% sales tax that must be remitted to the state by July 15. Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT