Exercise 8-1 Schedule of Expected Cash Collections [LO8-2]
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:
| April | May | June | Total | |
| Budgeted sales (all on account) | $450,000 | $650,000 | $250,000 | $1,350,000 |
From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $380,000, and March sales totaled $410,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
2. What is the accounts receivable balance on June 30th?
In: Accounting
Exercise 8-1 Schedule of Expected Cash Collections [LO8-2]
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:
| April | May | June | Total | |
| Budgeted sales (all on account) | $310,000 | $510,000 | $160,000 | $980,000 |
From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $240,000, and March sales totaled $270,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
2. What is the accounts receivable balance on June 30th?
In: Accounting
Silver Company makes a product that is very popular as a
Mother’s Day gift. Thus, peak sales occur in May of each year, as
shown in the company’s sales budget for the second quarter given
below:
| April | May | June | Total | |
| Budgeted sales (all on account) | $500,000 | $700,000 | $240,000 | $1,440,000 |
From past experience, the company has learned that 20% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $430,000, and March sales totaled $460,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.
In: Accounting
| INVOICE NAME | TERM START | TERM END | INVOICE AMOUNT | |
| 3/6/2014 | 3/6/2015 | 4,670.00 | ||
| 3/6/2013 | 3/6/2014 | 4,670.00 | ||
| 20140307_3_PL | 3/7/2014 | 3/7/2015 | 10,000.00 | |
| 20584307_3_PL | 3/7/2013 | 3/7/2014 | 9,000.00 | |
| PLN-02983 | 3/31/2014 | 3/30/2015 | 1,500.00 | |
| 71588 | 4/1/2014 | 4/1/2015 | 3,228.00 | |
| 713423 | 5/23/2014 | 3/31/2015 | 10,416.00 | |
| 11234 | 1/1/2014 | 12/31/2014 | 1,000.00 |
The above includes information pertaining to the terms and invoice amounts of several prepaid expenses. Calculate the monthly amortization using the quarter of a month depreciation method (.25, .5, .75). Quarter of a month method of depreciation.
In: Accounting
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below: April May June Total Budgeted sales (all on account) $460,000 $660,000 $210,000 $1,330,000 From past experience, the company has learned that 20% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $390,000, and March sales totaled $420,000.
Required:
1.
Prepare a schedule of expected cash collections from sales, by
month and in total, for the second quarter.
2.
Assume that the company will prepare a budgeted balance sheet as of
June 30. Compute the accounts receivable as of that date.
In: Accounting
In: Accounting
|
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below: |
| April | May | June | Total | |
| Budgeted sales (all on account) | $500,000 | $700,000 | $240,000 | $1,440,000 |
|
From past experience, the company has learned that 20% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 20% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $430,000, and March sales totaled $460,000. |
| Required: | |
| 1. |
Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. |
| 2. |
Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. |
In: Accounting
Exercise 8-1 Schedule of Expected Cash Collections [LO8-2]
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:
| April | May | June | Total | |
| Budgeted sales (all on account) | $410,000 | $610,000 | $210,000 | $1,230,000 |
From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $340,000, and March sales totaled $370,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
2. What is the accounts receivable balance on June 30th?
In: Accounting
|
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below: |
| April | May | June | Total | |
| Budgeted sales (all on account) | $470,000 | $670,000 | $230,000 | $1,370,000 |
|
From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $400,000, and March sales totaled $430,000. |
| Required: | |
| 1. |
Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. |
| 2. |
Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. |
In: Accounting
QUESTION 4 [27 marks] Suppose the following quarterly earnings (in N$ millions) have been recorded by Namibia breweries company for the years 2007 to 2010. Year Quarter 2007 2008 2009 2010 1 52 57 60 66 2 67 90 77 82 3 27 75 84 98 4 45 71 63 76 4.1 Compute the 4-period centred moving average for the quarterly sales. [4] 4.2 Compute the seasonal indexes for these quarterly earnings. [10] 4.3 Use the method of least squares from regression analysis to determine the trend line of best fit. Use the zero-sum method for coding. [10] 4.4 Using the trend line you produced in 4.3, estimate the trend value of the time series for Quarter 3 in 2014. [3]
In: Statistics and Probability