Eastern Auto Parts Inc. has 20 percent of its sales paid for in cash and 80 percent on credit. All credit accounts are collected in the following month.    Assume the following sales:          January $ 78,000 February   68,000 March   113,000 April   58,000   Sales in December of the prior year were $88,000. Prepare a cash receipts schedule for January through April.   Eastern Auto Parts Inc.                                                                              January February March April Sales Cash receipts: Cash sales Prior month's credit salesTotal cash receipts$0$76,000$77,000$102,000

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A: The cash collection schedule is prepared to estimate the cadh collection during the period.

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A: A cash budget is an estimation of expected cash receipts and disbursements on the basis of past…

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Q: The Cash balance on Jan 01 of the Cowan Company is $ 5000. Sales and purchases for the first four…

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A: Cash Budget is that Ledger / Account which is prepare on estimated figure basis for know the Cash…

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A: Working    January   February    March   January sales on account         Collected In…

Q: the following are forecasts of sales and purchases for a company.                     Sales…

A: Formula: Cash collections = Sales value x Amount collection percentage

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A: First quarter mean January, February, March.

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A: Schedule of cash receipts: A schedule of cash receipts shows how much cash is expected from debtors…

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A:

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A: Cash collected means total cash received from :- (i) Cash sales  (ii) Cash received from debtors.…

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A: The cash budget shows the position of cash inflow and outflow during a period of time. Budgets are…

Q: Marlin Company projects the follwoing sales for the first thre months of the year: $11500 in…

A: Working Note Particulars  January   February   March  Total Budgeted Sales      11,500…

Q: OfficeMart Inc. has “cash and carry” customers and credit customers. OfficeMart estimates that 25%…

A:

Q: Schedule of Cash Collections of Accounts Receivable Office World Inc. has "cash and carry"…

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Q: Dai Hing Bookshop Ltd. has a beginning cash balance of $44,000 on November 1. The firm has projected…

A: November collection = 15/30 x 61000 + 68000 x15/30 = $64500 December collection = 15/30 x 68000 +…

Q: Sales for April, May, June, and July will be $310,000, $330,000, $320,000, and $340,000,…

A: Account receivable shows the amount of sales which is not received yet. In simple, it represents the…

Q: A company's sales for the coming months are as follows: April, P175,000 June, P140,000 August,…

A: The Cash Budget is the total estimation of the total cash receipts and the total cash to be disburse…

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A: The cash budget keeps the records of cash requirements in the business.

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Q: UIO Company makes all of its sales on account. UIOcollects its account as follows: 20% in the month…

A: The account receivables are the assets of the business which would be converted into cash within one…

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A: Cash Budget is an important device to plan and control cash receipts and payments. it shows the…

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A: Cash disbursement: It can be defined as the payment of cash made by the company from its account or…

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A: Prepare a schedule of cash collections from sales for October, November and December as shown below:…

Q: NUBD Company makes all of its sales on account. NUBD collects its account as follows: 20% in the…

A: Ending Balance = Beginning Balance + Credit Sales - Payments received from Customers

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A: Cash sales in August = Total sales x 30% = $95,000 x 30% = $28,500

Q: As of January 1 of the current year, Grayson Company had accounts receivable of $40,000. The sales…

A: Credit sales for January = total sales x 80% = $120,000 x 80% = $96,000

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A: Cash collection schedule is prepared to estimate the total receipts of a particular period. Total…

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A: SOLUTION- ACCOUNTS RECEIVABLE  IS THE BALANCE OF MONEY DUE TO A FIRM FOR GOODS OR SERVICES DELIVERED…

Q: d.                                                             Cash Receipts…

A: Jan Feb Mar   Total Sales Value         90,000        1,10,000        1,20,000   Sale in…

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A: Budgets are the estimates or forecasts for future period and expressed in quantitative form of…

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A: The cash budget is prepared to record the cash receipts and cash payments during the period.

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A: Cash budget: A cash budget is a budget which records the expected cash inflows and outflows of a…

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A: The cash receipts schedule presents the pattern in which the business entity expects to collect cash…

Q: Carson Ltd. has prepared the following 2021 projections for its beverage company: Sales Month Cash…

A:

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A: Cash budget refers to the complete estimation of business cash flow for a particular period of time.

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A: Here in this question we will required to prepare budgets. Budget is a estimation of management…

Q: The table below highlights Deluna Company's expected sales Month RM January 100,000 February 120,000…

A: Jan sale = 100,000 Feb sale = 120000 March sale = 110000 Receipt in the month of sale = 30% One…

Q: Al Bahr Corporation, a wholesaler, provided the following information Month Sales January 64000…

A: The budget is prepared to estimate the cash collection in the future.

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A: Budget: A budget is an estimation to determine the income that will be earned and expenses that will…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.