Question

In: Finance

Monitoring of Receivables The Russ Fogler Company, a small manufacturer of cordless telephones, began operations on...

Monitoring of Receivables

The Russ Fogler Company, a small manufacturer of cordless telephones, began operations on January 1. Its credit sales for the first 6 months of operations were as follows:

Month Credit Sales
January $  53,000
February 103,000
March 123,000
April 108,000
May 143,000
June 163,000

Throughout this entire period, the firm’s credit customers maintained a constant payments pattern: 10% paid in the month of sale, 50% paid in the first month following the sale, and 40% paid in the second month following the sale.

  1. What was Fogler’s receivables balance at the end of March and at the end of June? Do not round intermediate calculations. Round your answers to the nearest dollar.

    March receivables: $  

    June receivables: $  

  2. Assume 90 days per calendar quarter. What were the average daily sales (ADS) and days sales outstanding (DSO) for the first quarter and for the second quarter? Do not round intermediate calculations. Round ADS answers to the nearest dollar and DSO answers to one decimal place.

    1st Quarter ADS: $  

    1st Quarter DSO:       days

    2nd Quarter ADS: $  

    2nd Quarter DSO:      days

    What were the cumulative ADS and DSO for the first half-year? Do not round intermediate calculations. Round ADS answer to the nearest dollar and DSO answer to one decimal place.

    Cumulative Quarter ADS: $  

    Cumulative Quarter DSO:      days

  3. Construct an aging schedule as of June 30. Use account ages of 0–30, 31–60, and 61–90 days. Do not round intermediate calculations. Round your answers for monetary values to the nearest dollar and for percentage values to the nearest whole number. If no entry is required, enter "0".

    Age of Accounts
    (days)
    Dollar Value
    Percent of Total
    0 - 30 $   %
    31 - 60   
    61 - 90   
    $   %

  4. Construct the uncollected balances schedule for the second quarter as of June 30. Do not round intermediate calculations. Round your answers for monetary values to the nearest dollar and for percentage values to the nearest whole number. If no entry is required, enter "0".

    Quarter 2 Sales Receivables Receivables/Sales
    April $   $   %
    May      
    June      
    $   %

Solutions

Expert Solution

For any query or clarification, please leave a comment.

jeff jeffy answered 4 months ago
Next > < Previous

Related Solutions

Monitoring of Receivables. The Russ Fogler company, a small manufacturer of cordless telephones, began operations on...
Monitoring of Receivables. The Russ Fogler company, a small manufacturer of cordless telephones, began operations on January 1. Its credit sales for the first 6 months of operations were as follows: Month              Credit Sales January             $ 50,000 February           100,000 March               120,000 April                 105,000 May                 140,000 June                 160,000 Throughout this entire period, the firm’s credit customers maintained a constant payments pattern; 20% paid in the month of sale, 30% paid in the first month following the sale, and 50% paid...
The Russ Fogler Company, a small manufacturer of cordless telephones, began operations on January 1. Its...
The Russ Fogler Company, a small manufacturer of cordless telephones, began operations on January 1. Its credit sales for the first 6 months of operations were as follows: Month Credit Sales January $ 75,000 February 125,000 March 145,000 April 130,000 May 165,000 June 185,000 Throughout this entire period, the firm’s credit customers maintained a constant payments pattern: 25% paid in the month of sale, 35% paid in the first month following the sale, and 40% paid in the second month...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 35 per unit Direct labor $ 55 per unit Overhead costs Variable $ 40 per unit Fixed $ 6,300,000 (per year) Selling and administrative costs for the year Variable $ 750,000 Fixed $ 5,000,000 Production and sales for the year Units produced 105,000 units Units sold 75,000 units Sales price per unit $...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 35 per unit Direct labor $ 55 per unit Overhead costs Variable $ 40 per unit Fixed $ 6,600,000 (per year) Selling and administrative costs for the year Variable cost $ 775,000 Fixed cost $ 4,500,000 Production and sales for the year Units produced 110,000 units Units sold 80,000 units Sales price per...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 35 per unit Direct labor $ 55 per unit Overhead costs Variable $ 30 per unit Fixed $ 7,350,000 (per year) Selling and administrative costs for the year Variable $ 775,000 Fixed $ 5,000,000 Production and sales for the year Units produced 105,000 units Units sold 75,000 units Sales price per unit $...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 30 per unit Direct labor $ 50 per unit Overhead costs Variable $ 20 per unit Fixed $ 8,400,000 (per year) Selling and administrative costs for the year Variable $ 775,000 Fixed $ 5,000,000 Production and sales for the year Units produced 105,000 units Units sold 75,000 units Sales price per unit $...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 35 per unit Direct labor $ 55 per unit Overhead costs Variable $ 20 per unit Fixed $ 8,800,000 (per year) Selling and administrative costs for the year Variable $ 725,000 Fixed $ 4,500,000 Production and sales for the year Units produced 110,000 units Units sold 80,000 units Sales price per unit $...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 35 per unit Direct labor $ 55 per unit Overhead costs Variable $ 20 per unit Fixed $ 8,800,000 (per year) Selling and administrative costs for the year Variable $ 725,000 Fixed $ 4,500,000 Production and sales for the year Units produced 110,000 units Units sold 80,000 units Sales price per unit $...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2015. Its cost and...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2015. Its cost and sales information for this year follows.   Manufacturing costs      Direct materials $ 35   per unit      Direct labor $ 55   per unit      Overhead costs for the year          Variable overhead $ 4,200,000          Fixed overhead $ 6,300,000   Selling and administrative costs for the year      Variable $ 800,000      Fixed $ 4,500,000   Production and sales for the year      Units produced 105,000 units      Units sold 75,000 units      Sales price per unit...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and...
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 40 per unit Direct labor $ 60 per unit Overhead costs Variable $ 30 per unit Fixed $ 7,000,000 (per year) Selling and administrative costs for the year Variable $ 770,000 Fixed $ 4,250,000 Production and sales for the year Units produced 100,000 units Units sold 70,000 units Sales price per unit $...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT