Question

In: Accounting

In the coming year, Urayse, Inc. will be introducing its first product, a wrist brace that...

In the coming year, Urayse, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $11.25 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows

Budgeted sales units 1st Quarter: 25,000 2nd Quarter: 40,000 3rd Quarter:50,000 4th Quarter: 80,000

Prepare Urayse, Inc.'s, cash receipts budget for the coming year.   

Solutions

Expert Solution

To compute the cash receipt, Urayse Inc. will have to compute the total sales of a quarter. Usually, Company prepares a sales budget on monthly basis and quarterly basis. For Urayse, all the sales are made to retailers on credit initially and later on collected. For Urayse Inc., Sales budget will llook like below:

After Sales Budget, company its production and prepares cash flow statement accordingly. Since Urayse will receive 65% of its credit sales in same quarter in which sale is made and another 35% in next quarter. As per question, the rest 5% remains uncollectible which will be charged to P&L A/c as Bad debts. Point to note here is Sale made in Quarter 4 is realized as 65% in same quarter and 35% in Quarter 1 of next year. Let’s prepare the cash receipts Budget for Urayse:

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

In the coming year, Oriole, Inc. will be introducing its first product, a wrist brace that...
In the coming year, Oriole, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $20 to retailers throughout the country. All sales will be made on account. An expected 75% of sales will be collected within the quarter of the sale, and another 20 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget...
Exercise D5-21 In the coming year, Urayse, Inc. will be introducing its first product, a wrist...
Exercise D5-21 In the coming year, Urayse, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $11.25 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The...
Brace, Inc., a regular corporation, owns 90% of West common stock. This year, Brace generated $60,000...
Brace, Inc., a regular corporation, owns 90% of West common stock. This year, Brace generated $60,000 taxable income before the dividend received deduction, including $10,000 dividend income from West. Brace's taxable income after special deductions is: options: A) $53,000 B) $58,000 C) $52,000 D) $50,000
Corporation is preparing its budget for the coming year. The first step is to plan for...
Corporation is preparing its budget for the coming year. The first step is to plan for the first quarter of that coming year. Waterways gathered the following information from the managers. Sales: Actual unit sates for November 113,500 Actual unit sales for December 103,100 Expected unit sales for January 114,000 Expected unit sales for February 113,500 Expected unit sales for March 116,000 Expected unit sales for April 126,000 Expected unit sales for May 138,500 Unit selling price $12 Waterways wants...
Northern Illinois Manufacturing is preparing its budget for the coming year. The first step is to...
Northern Illinois Manufacturing is preparing its budget for the coming year. The first step is to plan for the first quarter of that coming year. Northern Illinois gathered the following information from its managers. Sales: Actual unit sates for November 113,500 Actual unit sales for December 103,100 Expected unit sales for January 114,000 Expected unit sales for February 113,500 Expected unit sales for March 116,000 Expected unit sales for April 126,000 Expected unit sales for May 138,500 Unit selling price...
Northern Illinois Manufacturing is preparing its budget for the coming year. The first step is to...
Northern Illinois Manufacturing is preparing its budget for the coming year. The first step is to plan for the first quarter of that coming year. Northern Illinois gathered the following information from its managers. Sales: Actual unit sates for November 113,500 Actual unit sales for December 103,100 Expected unit sales for January 114,000 Expected unit sales for February 113,500 Expected unit sales for March 116,000 Expected unit sales for April 126,000 Expected unit sales for May 138,500 Unit selling price...
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to...
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2019 111,000 Unit sales for December 2019 101,000 Expected unit sales for January 2020 112,000 Expected unit sales for February 2020 114,000 Expected unit sales for March 2020 115,000 Expected unit sales for April 2020 124,000...
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to...
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2019 114,000 Unit sales for December 2019 103,000 Expected unit sales for January 2020 114,000 Expected unit sales for February 2020 111,000 Expected unit sales for March 2020 116,000 Expected unit sales for April 2020 125,000...
Northern Illinois Manufacturing is preparing its budget for the coming year. The first step is to...
Northern Illinois Manufacturing is preparing its budget for the coming year. The first step is to plan for the first quarter of that coming year. Northern Illinois gathered the following information from its managers. Sales: Actual unit sates for November 113,500 Actual unit sales for December 103,100 Expected unit sales for January 114,000 Expected unit sales for February 113,500 Expected unit sales for March 116,000 Expected unit sales for April 126,000 Expected unit sales for May 138,500 Unit selling price...
Waterways Corporation is preparing its budget for the coming year. The first step is to plan...
Waterways Corporation is preparing its budget for the coming year. The first step is to plan for the first quarter of that coming year. Waterways gathered the following information from the managers. Sales: Actual unit sates for November 113,500 Actual unit sales for December 103,100 Expected unit sales for January 114,000 Expected unit sales for February 113,500 Expected unit sales for March 116,000 Expected unit sales for April 126,000 Expected unit sales for May 138,500 Unit selling price $12 Waterways...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT