Fiscal Company has the following sales budget for the last six months of 2011: $ 90,000 100,000 94,000 $100,000 July August 80,000 September 110,000 October November December Historically, the cash collection of sales has been as follows: 65% of sales collected in the month of sale, 25% of sales collected in the month following the sale, 8% of sales collected in the second month following the sale, and 2% of sales are uncollectible. Required a. What are the cash collections for September? b. What is the ending balance of accounts receivable for Septem assuming uncollectible balances are written off during the se following the sale?

Fiscal Company has the following sales budget for the last six months of 2011: $ 90,000 100,000 94,000 $100,000 July August 80,000 September 110,000 October November December Historically, the cash collection of sales has been as follows: 65% of sales collected in the month of sale, 25% of sales collected in the month following the sale, 8% of sales collected in the second month following the sale, and 2% of sales are uncollectible. Required a. What are the cash collections for September? b. What is the ending balance of accounts receivable for Septem assuming uncollectible balances are written off during the se following the sale?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9EB: Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25%...

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A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
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Prepare a cash budget for Atlas Products, Inc. for the first quarter of 2011 based on the following information. Total Sales Credit Sales December 2010 $825,000 $770,000 January 2011 730,000 690,000 February 2011 840,000 780,000 March 2011 920,000 855,000 The company found that on average, about 25% of its credit sales are collected during the month when the sale is made, and the remaining 75% of the credit sales are collected during the month following the sale. The company estimates its purchases at 60% of the next month’s sales and payments for those purchases are budgeted to lag the…