Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 (Actual) (Budgeted) (Budgeted) (Budgeted) Credit sales $ 55,000 $ 135,000 $ 150,000 $ 105,000 Cash sales $ 14,000 $ 20,000 $ 25,000 $ 7,000 Based on the company's collection history, 42% of credit sales are collected in month of sale, and the remainder is collected in the following month. Cash collections in January from December credit sales would be: Multiple Choice $31,900. $32,000. $30,800. $30,620.

Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 (Actual) (Budgeted) (Budgeted) (Budgeted) Credit sales $ 55,000 $ 135,000 $ 150,000 $ 105,000 Cash sales $ 14,000 $ 20,000 $ 25,000 $ 7,000 Based on the company's collection history, 42% of credit sales are collected in month of sale, and the remainder is collected in the following month. Cash collections in January from December credit sales would be: Multiple Choice $31,900. $32,000. $30,800. $30,620.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 17E

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Now assume that Outdoorsies's sales are collected as follows: Outdoorsies expects total sales of $698,000 for January and $347,000 for February. November sales totaled $393,000 and December sales were $395,000. 50% in the month of the sale 40% in the month after the sale The following schedule of cash receipts for January and February was prepared based upon the collection history given: A (Click the icon to view the collection history.) 5% two months after the sale 5% never collected (Click the icon to view the schedule of cash receipts.) Prepare a revised schedule of cash receipts for January and February (If an input field is not used in the table leave the input field empty: do not enter a zero.) More Info Cash Receipts from Customers January February Total sales 60% in the month of the sale January February 30% in the month after the sale Cash Receipts from Customers: 6% two months after the sale 4% never collected Nov.-Credit sales, collection of Nov. sales in Jan. Dec.-Credit…
6) Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 (Actual) (Budget) (Budget) (Budget) Credit sales $120,000 $280,000 $310,000 $220,000 Cash sales 20,000 50,000 60,000 24,000 Based on the company's collection history, 42% of credit sales are collected in month of sale and the remainder is collected in the following month. Total budgeted cash receipts in February are expected to be:
1. The company, a wholesaler, budgeted sales for the indicated months June July August Sales on account P1,800,000 P1,920,000 P2,010,000 Cash sales 240.000 250.000 260.000 Total sales P2,010,000 P2,170,000 P2,300,000 All merchandise is marked up to sell at its invoice cost plus 25%. Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold. The cost of goods sold for the month of June is anticipated to be
You are provided with the following information taken from Wildhorse Inc.'s March 31, 2025, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings 1. 2. 3. 4. 5. Additional information concerning Wildhorse Inc. is as follows. 6. 7. Gross profit is 25% of sales. Actual and budgeted sales data: March (actual) April (budgeted) March April Purchases March $48,200 $19,280 42,420 $61,700 Purchases April $11,600 70,700 20,180 36,010 Sales are both cash and credit. Cash collections expected in April are: (40% of $48,200) (60% of $70,700) 120,800 22,560 154,500 11.680 Half of a month's purchases are paid for in the month of purchase and half in the following month. Cash disbursements expecte $22,560 28,320 $50,880 Cash operating costs are anticipated to be $12,630 for the month of April. Equipment costing $2,560 will be purchased for cash in April. The company wishes to maintain a minimum cash balance…
Required information [The following information applies to the questions displayed below.] Lamonte Company reports the following budgeted December 31 adjusted trial balance. Debit $ 52,200 122, 200 66, 200 127,200 Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation-Equipment Accounts payable Loan payable Common stock Retained earnings (beginning year balance) Sales Cost of goods sold Loan interest expense Depreciation expense Salaries expense Totals LAMONTE COMPANY Budgeted Income Statement For Year Ended December 31 Gross profit Selling, general and administrative expenses 362,200 10, 200 12, 200 124, 200 $ 876,600 Prepare the budgeted income statement for the current year ended December 31. Ignore income taxes. $ Credit 0 0 $ 27,200 36,200 24, 200 205,500 61,300 522, 200 $ 876,600
You are provided with the following information taken from Sage Hill Inc's March 31, 2027, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings 1 2 3. 5. 6. 7. Additional information concerning Sage Hill Inc. is as follows. Gross profit is 24% of sales. Actual and budgeted sales data: March (actual) April (budgeted) March April $18.840 $47.100 $62460 $12,280 72.700 23.120 37,100 123,400 22,910 Sales are both cash and credit, Cash collections expected in April are: 152.900 12.320 (40% of $47.100) (60% of $72,700) Half of a month's purchases are paid for in the month of purchase and half in the following month Cash disbursements expecte Purchases March Purchases April $22,910 28,910 $51820 Cash operating costs are anticipated to be $12,110 for the month of April. Equipment costing $2,530 will be purchased for cash in April. The company wishes to maintain a minimum cash balance of $12,240. An…
Alpha CD has budgeted its activity for December according to the following information:1. Sales at P400,000, all for cash.2. Budgeted depreciation for December is P10,000.4. The cash balance at December 1 was P10,000.5. Selling and administrative expenses are budgeted at P40,000 for December and are paid for in cash.6. The planned merchandise inventory on December 31 and December 1 is P12,000.7. The invoice cost for merchandise purchases represents 75% of the sales price. All purchases are paid in cash. How much are the budgeted cash disbursements for December?
Oriole Enterprises reports all its sales on credit, and pays operating costs in the month incurred. Estimated amounts for the months of June through October are: August September October July $272800 $290400 $264000 $246400 $228800 $79200 June Budgeted sales Budgeted purchases $126720 $105600 $112640 O $279840. O $256080. O $158400. O. $274560. $116160 Customer amounts on account are collected 60% in the month of sale and 40% in the following month. Cost of goods sold is 45% of sales. Oriole purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month. How much cash is budgeted to be received during August?
sh On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following infor- mation has been provided by Spicer's management. Month January February March April May Credit Sales Collections in the month of the sale Collections one month after the sale Collections two months after the sale Uncollectible accounts ary. The company's collection activity on credit sales historically has been as follows. $300,000 (actual) 400,000 (actual) 600,000 (estimated) 700,000 (estimated) 800,000 (estimated) 50% 30 15 5 Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter. Compute Spicer's budgeted cash balance at the ends of March, April, and May.
A corporation makes collections on sales according to the following schedule: 45% in month of sale 53% in month following sale 2% in the second month following sale The following sales have been budgeted: Sales April $220,000 May $150,000 June $140,000 Budgested cash collections in June would: ___________________________
On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following information has been provided by Spicer's management. January February March Month Credit Sales $300,000 (actual) 400,000 (actual) 473,000 (estimated) April May 671,000 (estimated) 800,000 (estimated) The company's collection activity on credit sales historically has been as follows. Collections in the month of the sale Collections one month after the sale Collections two months after the sale Uncollectible accounts 50% 30 15 5 Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter. Compute Spicer's budgeted cash balance at the ends of March, April, and May. Answer is complete but not entirely…
On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections: August sales (actual) September sales (actual) October sales (estimated) November sales (estimated) December sales (estimated) $ 40,000 $ 50,000 $ 20,000 $ 70,000 $ 60,000 Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter. Budgeted collections from customers in October total:

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	Dec. Year 1		Jan. Year 2	Feb. Year 2		Mar. Year 2
	(Actual)		(Budgeted)	(Budgeted)		(Budgeted)
Credit sales	$	55,000		$	135,000		$	150,000	$	105,000
Cash sales	$	14,000		$	20,000		$	25,000	$	7,000