Question

In: Accounting

q1: A company's past experience indicates that 60% of its credit sales are collected in the...

q1: A company's past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale; the remainder is never collected. Budgeted credit sales were:

January	$300000
February	156000
March	480000

2:The cash inflow in the month of March is expected to be

$334800.

$226800.

$349800.

$288000.

3: A company has budgeted direct materials purchases of $200000 in July and $380000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were budgeted:

Wages Expense	$50000
Purchase of office equipment	62000
Selling and Administrative Expenses	38000
Depreciation Expense	26000

4: The budgeted cash disbursements for August are

$326000.

$476000.

$502000.

$438000.

Expert Solution

ekkarill92 answered 2 years ago

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