Question
In: Finance
1.Big City Manufacturing (BCM) is preparing its cash budget and expects to have sales of $450,000...
1.Big City Manufacturing (BCM) is preparing its cash budget and expects to have sales of $450,000 in January, $375,000 in February, and $555,000 in March. If 20% of the sales are for cash, 45% are credit sales paid in the month after the sale, and another 35% are credit sales paid 2 months after the sale, what are the expected cash receipts for March?
2.In problem 1, Big City Manufacturing (BCM) assumed that all credit sales were paid in full, which is not realistic. BCM studied its past credit sales and determined that 3.25% of its credit sales resulted in Bad Debts that were never collected. Using the data from the previous problem with the new assumption that 3.25% of credit sales were never collected, what is your revised estimate for the expected cash receipts for March?
Solutions
jeff jeffy answered 7 months agoRelated Solutions
Big City Manufacturing (BCM) is preparing its cash budget and expects to have sales of $450,000...
Big City Manufacturing (BCM) is preparing its cash budget and
expects to have sales of $450,000 in January, $375,000 in February,
and $555,000 in March. If 20% of the sales are for cash, 45% are
credit sales paid in the month after the sale, and another 35% are
credit sales paid 2 months after the sale, what are the expected
cash receipts for March? Enter your answer rounded to two decimal
places. Do not enter $ or comma in the...
Q1. Big City Manufacturing (BCM) is preparing its cash budget and expects to have sales of...
Q1. Big City Manufacturing (BCM) is preparing its cash
budget and expects to have sales of $450,000 in January, $375,000
in February, and $555,000 in March. If 20% of the sales are
for cash, 45% are credit sales paid in the month after the sale,
and another 35% are credit sales paid 2 months after the sale, what
are the expected cash receipts for March?
1a. In problem 1, Big City Manufacturing (BCM) assumed
that all credit sales were paid...
Question 1 Part A Big City Manufacturing (BCM) is preparing its cash budget and expects to...
Question 1
Part A
Big City Manufacturing (BCM) is preparing its cash budget and
expects to have sales of $450,000 in January, $375,000 in February,
and $555,000 in March. If 20% of the sales are for cash, 45% are
credit sales paid in the month after the sale, and another 35% are
credit sales paid 2 months after the sale.
a) What are the expected cash receipts for
March?
Part B
Big City Manufacturing (BCM) assumed that all credit sales...
Roan’s manufacturing is preparing its cash budget for the first two months of the upcoming year....
Roan’s manufacturing is preparing its cash budget for the first
two months of the upcoming year. The following information concerns
the company’s upcoming cash receipts and disbursements.
Sales are 65% cash and 35% credit. Credit sales are collected
30% in the month of sale and the remainder in the month after the
sale. Actual sales in December were $51,000.
January sales are budgeted to be $60,000; February sales are
budgeted to be $69,000
Actual purchases of direct materials in December...
PART C Roan’s manufacturing is preparing its cash budget for the first two months of the...
PART C
Roan’s manufacturing is preparing its cash budget for the first
two months of the upcoming year. The following information concerns
the company’s upcoming cash receipts and disbursements.
Sales are 65% cash and 35% credit. Credit sales are collected
30% in the month of sale and the remainder in the month after the
sale. Actual sales in December were $51,000.
January sales are budgeted to be $60,000; February sales are
budgeted to be $69,000
Actual purchases of direct materials...
Roan’s manufacturing is preparing its cash budget for the first two months of the upcoming year....
Roan’s manufacturing is preparing its cash budget for the first
two months of the upcoming year. The following information concerns
the company’s upcoming cash receipts and disbursements.
Sales are 65% cash and 35% credit. Credit sales are collected
30% in the month of sale and the remainder in the month after the
sale. Actual sales in December were $51,000.
January sales are budgeted to be $60,000; February sales are
budgeted to be $69,000
Actual purchases of direct materials in December...
Raelynn is preparing its master budget for the quarter ended September 30. Budgeted sales and cash...
Raelynn is preparing its master budget for the quarter ended
September 30. Budgeted sales and cash payments for merchandise for
the next three months follow.
Budgeted
July
August
September
Sales
69,250
85,400
54,750
Cash payments for merchandise
42,950
39,300
33,600
Sales are 20% cash and 80% on credit. All credit sales are
collected in the month following the sale. The June 30 balance
sheet includes balances of $15,000 in cash; $45,000 in accounts
receivable;...
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash...
Built-Tight is preparing its master budget for the quarter ended
September 30. Budgeted sales and cash payments for product costs
for the quarter follow.
July
August
September
Budgeted sales
$
55,000
$
71,000
$
57,000
Budgeted cash payments for
Direct materials
15,360
12,640
12,960
Direct labor
3,240
2,560
2,640
Factory overhead
19,400
16,000
16,400
Sales are 20% cash and 80% on credit. All credit sales are
collected in the month following the sale. The June 30 balance
sheet includes balances...
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash...
Built-Tight is preparing its master budget for the quarter ended
September 30. Budgeted sales and cash payments for product costs
for the quarter follow:
July
August
September
Budgeted sales
$
64,000
$
80,000
$
48,000
Budgeted cash payments for
Direct materials
16,160
13,440
13,760
Direct labor
4,040
3,360
3,440
Factory overhead
20,200
16,800
17,200
Sales are 20% cash and 80% on credit. All credit sales are
collected in the month following the sale. The June 30 balance
sheet includes balances...
Renfro Company is preparing its master budget for May. Renfro’s sales budget shows expected sales for...
Renfro Company is preparing its master budget for May. Renfro’s
sales budget shows expected sales for May of 100,000 units. The
beginning finished goods inventory is an estimated 12,000 units and
the desired ending inventory is 9,000 units. Materials are expected
to be purchased at $2 per pound and each unit of product requires 3
pounds of material. Beginning and ending materials inventories are
expected to be 24,000 and 20,000 pounds, respectively. Direct labor
for each unit produced requires 0.5...
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