What would be the cash disbursements for month 3? Description Month 1 Month 2 Month 3 Month 4 Material Purchases $ 175,000.00 $ 185,000.00 $ 215,000.00 $ 190,000.00 Amount paid in month of purchase65.00% Amount paid in month after purchase30.00% Amount paid two months after purchase5.00% Discounts in month of purchase3.50% Discount in month after purchase1.00% Total Cash disbursements in month 3 Show your work below Description Month 1 Month 2 Month 3

Cash budget is a process of estimating cash receipt and payment for the upcoming period. This helps…

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 81APSA

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is a retailer. Its accountants are preparing the company's 2nd quarter master budget. The company has the following balance sheet as of March 31. Inc. Balance Sheet March 31 Assets Cash $ 83,000 Accounts receivable Inventory 126,000 69,750 220,000 Plant and equipment, net of depreciation Total assets $ 498,750 Liabilities and Stockholders' Equity Accounts payable Common stock $ 81,000 348,000 69,750 Retained earnings Total liabilities and stockholders' equity $ 498,750 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $310,000, $330,000, $320,000, and $340,000, respectively. 2. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at March 31 will be collected in April. 3. Each month's ending inventory must equal 30% of next month's cost of goods sold. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise…
ASSIGNMENT Given: A. Cash Receipts: Schedule of Sales (Values in Pesos) January 3,000 February 3,000 March 5,000 April 6,000 Of the sales transactions, 25% comprises cash sales, while the other 75% will be collected after one month. B. Cash Disbursements: Schedule of Purchases (Values in Pesos) January 3,000 February 0 March 2,000 April 4,000 Of the purchases, 50% are to be paid in cash, while the other 50% will be paid one month later. In addition, the following cash expenses are also shown. (Values in Pesos) Rent 1,000 monthly Supplies 500 monthly Labor 1,000 monthly c. Other Information: Ending Cash Balance in December was P5,000. b. Interest is 1% per month, if applicable There is no minimum ending cash balance required. a. C. Required: Construct a schedule of cash budget for the four-month period.
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 for January. • Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. • The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $22,600. Monthly depreciation is $28,500. . Ignore taxes. Assets Cash: Balance Sheet October 31 Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The difference between cash receipts and cash…
Find cash conversion cycle. Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days a. 46 days b. 31 days c. 42 days d. 38 days e. 34 days
Cash payment on purchases 3,717,000 of which 1,617,000 within the discount period
2.19) Find the average daily balance (new purchases included) Payment End of Day Balance Dates 1/1-1/19 1/20 1/21-1/22 1/23 1/24-1/31 $250.00 Average → Purchase $50.00 X Number of Days $225.00 x $275.00 x $275.00 x $25.00 x $25.00 x Total → 19 1 2 1 8 31 Sum of Balances I If the finance charge is 1.75% of the average daily balance, what is the finance charge is problem 2.19? Finance charge →
Archer Electronics Company's actual sales and purchases for April and May are shown here along with forecast sales and purchases for June through September: April (actual) May (actual) June (forecast) July (forecast) August (forecast) September (forecast) Sales $ 370,000 350,000 325,000 325,000 340,000 380,000 Purchases $ 155,000 145,000 145,000 205,000 225,000 220,000 The company makes 20 percent of its sales for cash and 80 percent on credit. Of the credit sales, 50 percent are collected in the month after the sale and 50 percent are collected two months later. Archer pays for 20 percent of its purchases in the month after purchase and 80 percent two months after. Labor expense equals 15 percent of the current month's sales. Overhead expense equals $12,500 per month. Interest payments of $32,500 are due in June and September. A cash dividend of $52,500 is scheduled to be paid in June. Tax payments of $25,500 are due in June and September. There is a scheduled capital outlay of…
In the credit terms 1/10, n/30, what does the "1" represent? Group of answer choices number of days when the entire amount is due number of days in the discount period full amount of the invoice 1% cash discount if paid within the credit period
You are given the following information: Receivables at 1 January 20X3 $10,000 Receivables at 31 December 20X3 $9,000 Total receipts during 20X3 (including cash sales of $5,000) $85,000 What are sales on credit during 20X3? A $81,000 B $86,000 C $79,000 D $84,000
7.8 Futura Company cash collections from customers has the following pattern: Collected within cash discount period in month of sale 50% Collected within cash discount period in first month after month of sale 10 Collected after cash discount period in first month after month of sale Collected after cash discount period in second month after month of sale 12 bolugbud er0s_3 100% Ynde 1% 25 Never collected Total sales in any month (before cash discounts) Cash discount allowable as a percentage of invoice price Instructions: Compute the total cash budgeted to be collected in March if sales are predice P300,000 for January, P400,000 for February, and P500,000 for March.
eBook Show Me How Question Content Area Schedule of Cash Collections of Accounts Receivable Furry Friends Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows: May $290,000 June 350,000 July 530,000 All sales are on account. 56 percent of sales are expected to be collected in the month of the sale, 34% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for May, June, and July. May June July May sales on account: Collected in May fill in the blank 1 Collected in June fill in the blank 2 Collected in July fill in the blank 3 June sales on account: Collected in June fill in the blank 4 Collected in July fill in the blank 5 July sales on account: Collected in July fill in the blank 6 Total cash collected $fill in the…
Month Cash Sales Sales on Account Purchases August $85,000 $640,000 $420,000 September $70,000 $550,000 $550,000 October $88,550 $600,000 $500,000 November $77,160 $800,000 $600,000 December $174,870 $500,000 $450,000 i) An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90:50% in the month of sale30% in the first month following the sale20% in the second month following the sale ii) Expected purchases include monthly cash purchases of 5%. All other purchases are on account. Accounts payable are settled as follows, in accordance with the credit terms –2/30, n60:60% in the month in which the inventory is purchased40% in the following month iii) Fixed operating expenses which accrue evenly throughout the year, are estimated to be $1,680,000 per annum, (including depreciation on non-current assets of $420,000 per annum) and is settled monthly. iv) Wages and salaries are…

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What would be the cash disbursements for month 3?

Description	Month 1	Month 2	Month 3	Month 4
Material Purchases	$ 175,000.00	$ 185,000.00	$ 215,000.00	$ 190,000.00

Amount paid in month of purchase	65.00%
Amount paid in month after purchase	30.00%
Amount paid two months after purchase	5.00%
Discounts in month of purchase	3.50%
Discount in month after purchase	1.00%

Total Cash disbursements in month 3

Show your work below
Description	Month 1	Month 2	Month 3