Question
In: Accounting
Graham Potato Company has projected sales of $13,200 in September, $16,000 in October, $23,200 in November,...
Graham Potato Company has projected sales of $13,200 in
September, $16,000 in October, $23,200 in November, and $19,200 in
December. Of the company's sales, 25 percent are paid for by cash
and 75 percent are sold on credit. Experience shows that 40 percent
of accounts receivable are paid in the month after the sale, while
the remaining 60 percent are paid two months after. Determine
collections for November and December.
Also assume Graham’s cash payments for November and December are
$19,500 and $12,000, respectively. The beginning cash balance in
November is $5,000, which is the desired minimum balance.
a. Prepare a cash receipts schedule for November and December.
b. Prepare a cash budget with borrowing needed or repayments for November and December. (Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Graham Potato Company has projected sales of $20,400 in September, $22,000 in October, $30,400 in November,...
Graham Potato Company has projected sales of $20,400 in
September, $22,000 in October, $30,400 in November, and $26,400 in
December. Of the company's sales, 30 percent are paid for by cash
and 70 percent are sold on credit. Experience shows that 40 percent
of accounts receivable are paid in the month after the sale, while
the remaining 60 percent are paid two months after. Determine
collections for November and December.
Also assume Graham’s cash payments for November and December...
Graham Potato Company has projected sales of $14,400 in September, $17,000 in October, $24,400 in November,...
Graham Potato Company has projected sales of $14,400 in
September, $17,000 in October, $24,400 in November, and $20,400 in
December. Of the company's sales, 25 percent are paid for by cash
and 75 percent are sold on credit. Experience shows that 40 percent
of accounts receivable are paid in the month after the sale, while
the remaining 60 percent are paid two months after. Determine
collections for November and December.
Also assume Graham’s cash payments for November and December...
Seager Company budgeted the following credit sales during the current year: September, $100,000; October, $120,000; November,...
Seager Company budgeted the following credit sales during the
current year: September, $100,000; October, $120,000; November,
$110,000; December, $111,000. Experience has shown that cash from
credit sales is received as follows: 10% in the month of sale, 60%
in the first month after sale, 25% in the second month after sale,
and 5% is uncollectible. How much cash should Seager Co. expect to
collect in November from all current and past credit sales. (1
point). Check: Cash collected in November...
“The Manager has projected the following costs corresponding to sales of 14,000 and 16,000 for the...
“The Manager has projected the following costs corresponding to
sales of 14,000 and 16,000 for the next month’s operation.
Cost Items
Number of Units
14,000
16,000
Materials
£7,000
£8,000
Labour
£16,800
£19,200
Electricity
£11,580
£12,520
Rent
£8,900
£8,900
Advertising
£14,920
£16,480
Depreciation
£60,000
£60,000
Required:
Identify if the costs are fixed, variable or semi-variable.
Provide mathematical proof to justify your answers.”
“The Manager has projected the following costs corresponding to sales of 14,000 and 16,000 for the...
“The Manager has projected the following costs corresponding to
sales of 14,000 and 16,000 for the next month’s operation.
Cost Items
Number of Units
14,000
16,000
Materials
£7,000
£8,000
Labour
£16,800
£19,200
Electricity
£11,580
£12,520
Rent
£8,900
£8,900
Advertising
£14,920
£16,480
Depreciation
£60,000
£60,000
Required:
Identify if the costs are fixed, variable or semi-variable.
Provide mathematical proof to justify your answers.”
Budgeted sales in Acer Corporation over the next four months are given below: September October November...
Budgeted sales in Acer Corporation over the next four months are given below:
September October November December
Budgeted Sales $140,000 $150,000 $170,000 $130,000
25% of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder...
The LaPann Company has obtained the following sales forecast data: July August September October Cash sales...
The LaPann Company has obtained the following sales forecast
data:
July August September October
Cash sales
$80,000
$70,000
$50,000
$60,000
Credit sales
240,000
220,000
180,000
200,000
The regular pattern of collection of credit sales is 20% in the
month of sale, 70% in the following the month of sale and the
remainder in the second month following the month of sale. There
are no bad debts.
The budgeted accounts receivable balance on September 30 would
be:
Budgeted Sales: September October November December January 280,000 300,000 320,000 360,000 200,000 Planning Assumptions: 25% of...
Budgeted Sales:
September
October
November
December
January
280,000
300,000
320,000
360,000
200,000
Planning
Assumptions:
25% of all Sales are cash. Accounts receivable are collected 60% in
the month of sale, 30% in the next month, and with the final 10% in
the third month.
Cost of Goods sold is 40% of sales. Inventory is purchased in the
month prior to the sale, 70% is paid in the month of acquisition
and 30% is paid the next month.
Operating Expenses:
Salaries...
September october November December January sales (units) 8000 12000 13000 16000 15000 Direct manufacturing labours hour...
September october November December January
sales (units) 8000 12000 13000 16000 15000
Direct manufacturing labours
hour per unit 1.79 1.75 1.70 1.65 1.60
Direct manufacturing labour rate per unit $15.75 $16.00 $16.50
$17.50 $17.50
Ending inventory required is the next month sales , plus one
half the following months sales
The ending inventory in august was 15000 units
Each employee is required to contributed to canada pension plan
in the order of 4.9% of wages, this is matched by the...
Month May June July August September October November December January Sales 350 350 250 250 350...
Month
May
June
July
August
September
October
November
December
January
Sales
350
350
250
250
350
550
650
750
650
Collections
month 0: 80%*95%
month -1: 15%
month -2: 5%
Payments
Purchase - 70% of next month sales
Purchase payment - 50% of current month
purchase
Purchase payment - 50% of last month
purchase
Lease payment
10
10
10
10
10
10
construction
0
0
0
60
0
0
wages
30
30
40
50
70
80
other
5
5
5...
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