It is January 1 of Year 2. Sales for Harry Company for January, February, and March...

It is January 1 of Year 2. Sales for Harry Company for January, February, and March are forecasted to be as follows: January, $200,000; February $400,000; March, $500,000. 80% of sales are credit sales; the remaining 20% of sales are cash sales. Of these credit sales, 10% are collected during the month of sale, 30% in the following month, and 60% in the second following month. TOTAL sales for November and December of Year 1 were $200,000 and $400,000, respectively.

What is the forecasted amount of total CASH COLLECTIONS FROM SALES in January?

$236,000
$272,000
$254,000
$248,000
$260,000

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

It is January 1 of Year 2, Purchases for Yosef Company for Hanuary, February, and March...

It is January 1 of Year 2, Purchases for Yosef Company for Hanuary, February, and March of Year 2 are forecasted to be as follows: January, 200,000 February, 400,000 March, 500,000 20% of purchases are for cash. Of the credit purchases, 30% are paid during the month of the purchases, 50% in the month following the purchase, and 20% in the second month following the purchase. Total purchases for November and December of Year 1 were 200,000 and 400,000 respectively....

Bill Johnson's Company Sales for January, February, and March are expected to be $200,000, $210,000, and...

Bill Johnson's Company Sales for January, February, and March are expected to be $200,000, $210,000, and $190,000, respectively. All sales are on account and are collected 50% in the month of the sale and 45% in the following month. The remaining 5% is determined to be uncollectible. Raw materials are purchased one month before being needed, and all purchases and expenses are paid for as incurred. The cash balance at February 1 is $8,750. Activities for January, February, and March...

SALES PER MONTH DURING THE LAST YEAR 20X1 JANUARY $ 550,000 FEBRUARY $ 825,000 MARCH $...

SALES PER MONTH DURING THE LAST YEAR 20X1 JANUARY $ 550,000 FEBRUARY $ 825,000 MARCH $ 575,000 APRIL $ 870,000 MAY $ 1,080,000 JUNE $ 1,065,000 JULY $ 1,070,000 AUGUST $ 1,060,000 SEPTEMBER $ 1,180,000 OCTOBER $ 1,140,000 NOVEMBER $ 1,290,000 DECEMBER $ 1,460,000 I. Sales Projection: 20X2 After consulting the Company's Management Committee, it was agreed that business plans and strategies were deemed appropriate, a 35% increase in sales reported during the months of last year 20x1. All sales...

The following credit sales are budgeted by Blossom Company. January 200600 February 295000 March 413000 The...

The following credit sales are budgeted by Blossom Company. January 200600 February 295000 March 413000 The company’s past experience indicates that 60% of the accounts receivable are collected in the month of sale, 40% in the month following the sale. The anticipated cash inflow for the month of March is $247800. $365800. $413000. $401200.

the cash sales and credit sales projected for sarahs kitchen are as follows: January february march...

the cash sales and credit sales projected for sarahs kitchen are as follows: January february march april may cash 17,000 19640 16200 15380 17390 credit 40,000 42000 48000 50000 49500 if collections of credit sales are 70% the first month and 30% the second month, what would be the cash receipts for march, april, and may

16. Camen Company projects the following sales: January February March Cash sales (45%) $12,150 $13,500 $14,400...

16. Camen Company projects the following sales: January February March Cash sales (45%) $12,150 $13,500 $14,400 Sales on account (55%) 14,850 16,500 17,600 Total sales $27,000 $30,000 $32,000 Camen collects sales on account in the month after the sale. The Accounts Receivable balance on January 1 is $13,100, which represents December's sales on account. Camen projects the following cash receipts from customers: January February March Cash receipts from cash sales $12,150 $13,500 $14,400 Cash receipts from sales on account 13,100...

Question 1: - Cash Budget: Estimated sales January February March April May Total Coffee sales (units)...

Question 1: - Cash Budget: Estimated sales January February March April May Total Coffee sales (units) 15,000 16,000 17,500 18,000 14,500 Your friend, MATT, has been running a successful coffee shop for the last couple of years. He has asked you to put together a cash budget. His regular accountant was too busy to help, but told MATT his depreciation expense was going to be $1,800 per year, using the straight-line method. He has supplied you with the following information...

49. Assume a merchandising company’s estimated sales for January, February, and March are $112,000, $132,000, and...

49. Assume a merchandising company’s estimated sales for January, February, and March are $112,000, $132,000, and $122,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 30% of next month’s cost of goods sold. It pays for 20% of its merchandise purchases in the month of the purchase and the remaining 80% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in...

Chen Grocery recorded sales for January, February, and March as RM22,000, RM36,000 and RM50,000, respectively. For...

Chen Grocery recorded sales for January, February, and March as RM22,000, RM36,000 and RM50,000, respectively. For any given month of sales, the following percentages are received over time in cash: 60% in cash from that same month of sales; 30% in cash from the previous month's sales; and 10% in cash from the sales from two months ago. What amount of cash will Chen Grocery received during February and March respectively? Select one: a. RM28,200 and RM43,000 b. RM64,200 and...

As the year progresses towards February and March, the incidence of that common cold from January...

As the year progresses towards February and March, the incidence of that common cold from January has increased to 0.45 (45%). Consider the class size n=25. a) If the random variable X represents the number of people sick with the common cold, what distribution it follows? b) What is the possibility of 20 people being sick? c) What is the possibility of at least 10 people being sick? d) What is the possibility of at most 5 people being sick?

Subjects