Exercise 13-39 (Static) Estimate Cash Collections (LO 13-4) Hackett Produce Supply is preparing its cash budget for April. The following information is available: Estimated credit sales for April Actual credit sales for March $ 198,000 $ 148,500 Estimated collections in April for credit sales prior to March $ 15,840 Estimated write-offs in April for uncollectible credit sales $ 7,920 $ 6,930 Estimated provision for bad debts in April for credit sales in April Estimated collections in April for credit sales in April Estimated collections in April for credit sales in March Required: What is the estimated amount of cash receipts from accounts receivable collections in April? Estimated cash receipts 30% 65%
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- MARS PAUTANG Company is preparing its cash budget for the month of June. The following information is available concerning its accounts receivable:Estimated credit sales for June P200,000Actual credit sales for May P150,000Estimated collections in June for credit sales in June 20%Estimated collections in June for credit sales in May 70%Estimated collections in June for credit sales prior to May P12,000Estimated write-offs in June for uncollectible credit sales P8,000Estimated provision for bad debts in June for credit sales in June P7,000What are the estimated cash receipts from accounts receivable collections in June?Exercise 13-35 (Algo) Estimate Cash Collections (LO 13-5) Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable: Estimated credit sales for August $ 130,000 Actual credit sales for July $ 99,000 Estimated collections in August for credit sales in August 25 % Estimated collections in August for credit sales in July 70 % Estimated collections in August for credit sales prior to July $ 11,000 Estimated write-offs in August for uncollectible credit sales $ 5,000 Estimated provision for bad debts in August for credit sales in August $ 4,800 Required: What is the estimated amount of cash receipts from accounts receivable collections in August?Hackett Produce Supply is preparing its cash budget for April. The following information is available: $ 268,000 $ 159,000 $ 15,000 $ 11,420 $ 10,430 Estimated credit sales for April Actual credit sales for March Estimated collections in April for credit sales prior to March Estimated write-offs in April for uncollectible credit sales Estimated provision for bad debts in April for credit sales in April Estimated collections in April for credit sales in April Estimated collections in April for credit sales in March Required: What is the estimated amount of cash receipts from accounts receivable collections in April? Estimated cash receipts 25% 70%
- Exercise 13-40 (Algo) Estimate Cash Collections (LO 13-4) All sales at Alaska Company are on credit. The company is preparing a cash budget for November. The following information on accounts receivable collections is available from customer payment history: Percent of current month's sales collected this month Percent of prior month's sales collected this month Percent of sales two months prior to current month collected this month Percent of sales three months prior to current month collected this month The remaining 4 percent is not collected and is written off as bad debts. Sales to date are as follows: November (estimated) October September August $ 280,000 600,000 250,000 670,000 Required: What are the estimated cash receipts from accounts receivable collections in November? Estimated cash receipts 25% 60 8 3 KPrepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Minden Company Cash Budget For the Month of May Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Purchase of inventory Selling and administrative expenses Purchases of equipment Total cash disbursements Excess of cash available over disbursements Financing: Borrowing-note Repayments-note Interest Total financing Ending cash balance $ 0 0 0 0 0The president of the retailer Prime Products has just approached the company's bank with a request for a $91,000, 90-day loan. The purpose of the loan is to assist the company in acquiring Inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $15,800. Accounts receivable on April 1 will total $176,400, of which $151,200 will be collected during April and $20,160 will be collected during May. The remainder will be uncollectible. b. Past experience shows that 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the…
- Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: Revenues April May $ 253,000 $ 272,000 $ 299,000 $ 346,000 $ 355,000 June July August Carmen's sales are 60% cash and 40% store credit. The credit sales are collected 60% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $34,000. Carmen's cost of sales averages 65% of revenues. The inventory policy is to carry 30% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 40% in the month of purchase and 60% the following month. Accounts payable on April 1 is $133,000. a. Prepare a purchases budget for as many months as is possible. April May June July August Sales Cost of Sales Percentage % % Cost of Sales Ending Inv Beginning Inv PurchasesBudgeting Cash Collections Lowell Consulting, which sells on terms 2/10, n/30, had credit sales for March and April of $90,000 and $75,000, respectively. Analysis of Lowell's operations indicates that the pattern of customers' payments on account is as follows (percentages are of total monthly credit sales) In month of sale in month of following sale Uncollectible accounts, returns, and allowances Receiving Discount Beyond Discount Period Totals 20% 60% 20% 35% 5% 100% 40% 15% Determine the estimated cash collected on customers' accounts in April.Schedule of Expected Cash Collections; Cash Budget The president of the retailer Prime Products has just approached the company’s bank with a request for a $30,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $24,000. Accounts receivable on April 1 will total $140,000, of which $120,000 will be collected during April and $16,000 will be collected during May. The remainder will be uncollectible. b. Past experience shows that 30% of a month’s sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never…
- Sonoma Housewares Inc. Cash Budget For the Three Months Ending July 31 May June July Estimated cash receipts from: Cash sales $ $ Collection of accounts receivable Total cash receipts $ Estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes: Income tax Dividends Total cash payments Cash increase or (decrease) $ bala at beginning Cash balance at end of month Minimum cash balance Excess (deficiency) $Prepare the cash budget for January and February of Gilmore Company using the following data: February P42,100 January Cash Receipts Cash Disbursements Beginning Cash Balance Ending P46,500 P38,320 P37,220 P5,210 As per computation Required Cash Balance (Minimum) P12,000 P12,000Jim Daniels Health Products has eight stores. The firm wants to expand by two more stores and needs a bank loan to do this. Mr. Hewitt, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. Following are actual and forecasted sales figures: Actual November December $420,000 January 440,000 February March Forecast Additional Information $500,000 April forecast $550,000 540,000 560,000 of the firm's sales, 40 percent are for cash and the remaining 60 percent are on credit. Of credit sales, 30 percent are paid in the month after sale and 70 percent are paid in the second month after the sale. Materials cost 35 percent of sales and are purchased and received each month in an amount sufficient to cover the current month's expected sales. Materials are paid for in the month they are received. Labour expense is 45 percent of sales and is paid in the month of sales. Selling and administrative expense is 4 percent of…