Question
In: Accounting
The following information is from Tejas WindowTints financial records, Month Sales Purchases April $75,000 $50,000 May...
The following information is from Tejas WindowTints financial records,
| Month | Sales | Purchases |
| April | $75,000 | $50,000 |
| May | 75,000 | 60,000 |
| June | 71,000 | 48,000 |
| July | 78,000 | 66,000 |
Collections from customers are normally 66 percent in the month of sale, 17 percent in the month following sale and 16 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 1 percent discount allowed on purchases paid by the tenth of the following month. Purchases for August are budgeted at $62,000 and sales for August are forecasted at $68,000. Cash disbursements for expenses are expected to be $14,800 for the month of August. The company cash balance on August 1 was $34,000.
REQUIRED:
1. Prepare the expected cash collections during August.
2. Prepare the expected cash disbursements during August.
3. Calculate the expected cash balance on August 31.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The following information is from Tejas WindowTint’s financial records. Month Sales Purchases April $ 72,000 $...
The following information is from Tejas WindowTint’s financial
records.
Month
Sales
Purchases
April
$
72,000
$
48,000
May
68,000
48,000
June
62,000
36,000
July
81,000
54,000
Collections from customers are normally 69 percent in the month
of sale, 19 percent in the month following the sale, and 11 percent
in the second month following the sale. The balance is expected to
be uncollectible. All purchases are on account. Management takes
full advantage of the 4 percent discount allowed on purchases...
The following information is from Tejas WindowTint’s financial records. Month Sales Purchases April $ 82,000 $...
The following information is from Tejas WindowTint’s financial
records.
Month
Sales
Purchases
April
$
82,000
$
46,000
May
75,000
45,000
June
73,000
33,000
July
79,000
51,000
Collections from customers are normally 68 percent in the month of
sale, 16 percent in the month following the sale, and 14 percent in
the second month following the sale. The balance is expected to be
uncollectible. All purchases are on account. Management takes full
advantage of the 5 percent discount allowed on purchases...
The following information was available from ABC Company's financial records. Sales Purchases April $90,000 $52,500 May...
The following information was available from ABC Company's
financial records.
Sales Purchases April $90,000 $52,500 May $82,500 $60,000 June
$75,000 $45,000 July $97,500 $67,500 August $82,500 $75,000
Collections from customers are as follows: Month of sale 75% One
month following sale 20% Second month following sale 5%
On the purchase side, the Company takes full advantage of the 3
percent discount allowed on purchases paid for by the tenth of the
following month. (Hint: April purchases are paid in full...
The following information is from White Mountain Furniture Showroom’s financial records. Month Sales Purchases July $...
The following information is
from White Mountain Furniture Showroom’s financial records.
Month
Sales
Purchases
July
$
79,000
$
61,000
August
76,000
51,000
September
66,000
39,000
October
81,000
57,000
Collections from customers are normally 65 percent in the month
of sale, 16 percent in the month following the sale, and 18 percent
in the second month following the sale. The balance is expected to
be uncollectible. All purchases are on account. Management takes
full advantage of the 3 percent discount allowed...
The following information is from White Mountain Furniture Showroom’s financial records. Month Sales Purchases July $...
The following information is from White Mountain Furniture
Showroom’s financial records.
Month
Sales
Purchases
July
$
75,000
$
48,000
August
75,000
47,000
September
68,000
35,000
October
72,000
53,000
Collections from customers are
normally 66 percent in the month of sale, 16 percent in the month
following the sale, and 16 percent in the second month following
the sale. The balance is expected to be uncollectible. All
purchases are on account. Management takes full advantage of the 2
percent discount allowed...
Joshua Studios expects the following sales in March, April and May: Sales $ Purchases $ March...
Joshua Studios expects the following sales in March, April and
May: Sales $ Purchases $ March 240,000 180,000 April 250,000
210,000 May 300,000 225,000 The controller has determined that the
company collects sales in the following pattern: 30% in the month
of sale, 50% in the first month after sale, 10% in the second month
after sale, and 10% uncollectable. Based on the agreed terms of
trade with suppliers, 40% of purchases are expected to be paid in
the month...
The records of Sweet’s Boutique report the following data for the month of April. Sales revenue...
The records of Sweet’s Boutique report the following data for
the month of April.
Sales revenue
$97,100
Purchases (at cost)
$47,800
Sales returns
2,100
Purchases (at sales price)
86,100
Markups
10,400
Purchase returns (at cost)
2,100
Markup cancellations
1,500
Purchase returns (at sales price)
3,100
Markdowns
10,200
Beginning inventory (at cost)
24,251
Markdown cancellations
2,900
Beginning inventory (at sales price)
44,800
Freight on purchases
2,500
Compute the ending inventory by the conventional retail inventory
method. (Round ratios for computational purposes...
The records of Kingbird’s Boutique report the following data for the month of April. Sales revenue...
The records of Kingbird’s Boutique report the following data for
the month of April.
Sales revenue
$95,600
Purchases (at cost)
$47,200
Sales returns
1,800
Purchases (at sales
price)
85,800
Markups
9,500
Purchase returns (at
cost)
1,800
Markup cancellations
1,400
Purchase returns (at sales
price)
2,800
Markdowns
8,600
Beginning inventory (at
cost)
36,103
Markdown cancellations
2,700
Beginning inventory (at sales
price)
50,600
Freight on purchases
2,100
Compute the ending inventory by the conventional retail inventory
method. (Round ratios for computational purposes...
The records of Teal’s Boutique report the following data for the month of April. Sales revenue...
The records of Teal’s Boutique report the following data for the
month of April.
Sales revenue
$108,600
Purchases (at cost)
$49,700
Sales returns
1,900
Purchases (at sales price)
92,100
Markups
9,200
Purchase returns (at cost)
1,900
Markup cancellations
1,300
Purchase returns (at sales price)
2,800
Markdowns
8,300
Beginning inventory (at cost)
35,220
Markdown cancellations
2,600
Beginning inventory (at sales price)
45,000
Freight on purchases
2,300
Compute the ending inventory by the conventional retail inventory
method. (Round ratios for computational purposes...
The records of Ellen's Boutique report the following data for the month of April. Sales Revenue...
The records of Ellen's Boutique report the following data for
the month of April.
Sales Revenue 95600
Sales Returns 1800
Markups 9500
Markup Cancellations 1400
Markdowns 8600
Markdown Cancellations 2700
Freight on purchases 2100
Purchases (@ Cost) 47200
Purchases (@ sales price) 85800
Purchase Returns (@ cost) 1800
Purchase Returns (@ sales) 2800
Beg Inventory @ cost 36103
Beg. Inventory @ sales 50600
Compute the ending inventory by the conventional retail
inventory method
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