Question

In: Accounting

Rockers expects total sales of $ 701,000 for January and $351,000 for February Assume that Rockers​'s...

Rockers expects total sales of $ 701,000 for January and

$351,000 for February Assume that Rockers​'s sales are collected as​ follows:

60% in the month of the sale

30% in the month after the sale

7% two months after the sale

3% never collected

November sales totaled $397,000​, and December sales were $400,000.

Prepare a schedule of cash receipts from customers for January and February. Round answers to the nearest dollar.​

Solutions

Expert Solution

Solution:
Schedule of Cash Receipts from Customers
January February Total
Cash Receipts from Customers:
Nov. sales—7% collected in Jan. $27,790
Dec. sales—30% collected in Jan. $120,000
Dec. sales—7% collected in Feb. $28,000
Jan. sales—60% collected in Jan $420,600
Jan. sales—30% collected in Feb. $210,300
Feb. sales—60% collected in Feb. $210,600
Total cash receipts from customers $568,390 $448,900 $1,017,290
Working Notes:
Schedule of Cash Receipts from Customers
January February Total
Cash Receipts from Customers:
Nov. sales—7% collected in Jan. $27,790
[$397,000 x 7% = $27,790 ]
Dec. sales—30% collected in Jan. $120,000
[$400,000 x 30% = $120,000]
Dec. sales—7% collected in Feb. $28,000
[$400,000 x 7% = $28,000]
Jan. sales—60% collected in Jan $420,600
[$701,000 x 60% = $420,600]
Jan. sales—30% collected in Feb. $210,300
[$701,000 x 30% = $210,300]
Feb. sales—60% collected in Feb. $210,600
[$351,000x 60% = $210,600]
Total cash receipts from customers $568,390 $448,900 $1,017,290
Please feel free to ask if anything about above solution in comment section of the question.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Esquire Products Inc. expects the following monthly sales: January $ 26,000 July $ 20,000 February 17,000...
Esquire Products Inc. expects the following monthly sales: January $ 26,000 July $ 20,000 February 17,000 August 24,000 March 10,000 September 27,000 April 12,000 October 32,000 May 6,000 November 40,000 June 4,000 December 22,000 Total sales = $240,000 Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each. Esquire...
Esquire Products Inc. expects the following monthly sales: January $ 44,000 July $ 38,000 February 35,000...
Esquire Products Inc. expects the following monthly sales: January $ 44,000 July $ 38,000 February 35,000 August 42,000 March 28,000 September 45,000 April 30,000 October 50,000 May 24,000 November 58,000 June 22,000 December 40,000 Total sales = $456,000 Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each. Esquire...
Esquire Products Inc. expects the following monthly sales: January $ 43,000 July $ 37,000 February 34,000...
Esquire Products Inc. expects the following monthly sales: January $ 43,000 July $ 37,000 February 34,000 August 41,000 March 27,000 September 44,000 April 29,000 October 49,000 May 23,000 November 57,000 June 21,000 December 39,000 Total sales = $444,000 Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each. Esquire...
Esquire Products Inc. expects the following monthly sales: January $ 45,000 July $ 39,000 February 36,000...
Esquire Products Inc. expects the following monthly sales: January $ 45,000 July $ 39,000 February 36,000 August 43,000 March 29,000 September 46,000 April 31,000 October 51,000 May 25,000 November 59,000 June 23,000 December 41,000 Total sales = $468,000 Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each. Esquire...
Esquire Products Inc. expects the following monthly sales: January $ 32,000 July $ 26,000 February 23,000...
Esquire Products Inc. expects the following monthly sales: January $ 32,000 July $ 26,000 February 23,000 August 30,000 March 16,000 September 33,000 April 18,000 October 38,000 May 12,000 November 46,000 June 10,000 December 28,000 Total sales = $312,000 Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each. Esquire...
Esquire Products Inc. expects the following monthly sales: January $ 37,000 July $ 31,000 February 28,000...
Esquire Products Inc. expects the following monthly sales: January $ 37,000 July $ 31,000 February 28,000 August 35,000 March 21,000 September 38,000 April 23,000 October 43,000 May 17,000 November 51,000 June 15,000 December 33,000 Total sales = $372,000 Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each. Esquire...
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...
limerick, Inc: has budgeted total sales for January, February, and March of $800,000, $900,000, and $950,000...
limerick, Inc: has budgeted total sales for January, February, and March of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 40% are collected in the same month as the sale, and 60% are collected during the first month after the sale. Compute the amount of cash received from sales during the month of February.
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...
Estimated sales January February March April May Total Coffee sales (units) 15,000 16,000 18,000 17,500 14,500...
Estimated sales January February March April May Total Coffee sales (units) 15,000 16,000 18,000 17,500 14,500 Your friend, Chris Coffee, 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 Chris his depreciation expense was going to be $9,000 per year, using the straight-line method. He has supplied you with the following information (above) to help you...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT