3 Potter Inc. is preparing budget for the second quarter of 20YY. 4 April sales are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
3 Potter Inc. is preparing budget for the second quarter of 20YY. 4 April sales are estimated to be $400,000 of which, 5 $100,000 will be cash and $300,000 be sales on account. 6 Potter expects sales to grow 10% per month. 8 The company expects to collect its accounts receivable as follows: 9 During the month of sales: 10 In the month after the sales, the remaining: 11 The accounts receivable at March 31, 20YY to be collected in April: 30% 70% $250,000 12 13 Required: 14 Use the tables below to prepare: 15 Sales budget and Cash collection schedule for the second quarter. 16 17 Solution: April 24 18 Sales budget May June Proforma I.S. Data 19 24 2$ 2$ 20 Cash sales 21 Credit sales 22 Total sales 23 April 24 24 Cash collection schedule May June Proforma B.S. Data 25 26 Receipt from cash sales 27 Collection of: 24 2$ $ 28 Current month's sales on account 29 Previous month's sales on account 30 Total cash receipts 31 3 Potter Inc. is preparing budget for the second quarter of 20YY. 4 April sales are estimated to be $400,000 of which, 5 $100,000 will be cash and $300,000 be sales on account. 6 Potter expects sales to grow 10% per month. 8 The company expects to collect its accounts receivable as follows: 9 During the month of sales: 10 In the month after the sales, the remaining: 11 The accounts receivable at March 31, 20YY to be collected in April: 30% 70% $250,000 12 13 Required: 14 Use the tables below to prepare: 15 Sales budget and Cash collection schedule for the second quarter. 16 17 Solution: April 24 18 Sales budget May June Proforma I.S. Data 19 24 2$ 2$ 20 Cash sales 21 Credit sales 22 Total sales 23 April 24 24 Cash collection schedule May June Proforma B.S. Data 25 26 Receipt from cash sales 27 Collection of: 24 2$ $ 28 Current month's sales on account 29 Previous month's sales on account 30 Total cash receipts 31
Expert Answer:
Answer rating: 100% (QA)
Sales Budget April May June Proforma IS Data Cash Sales 100000 110000 121000 331000 Cr... View the full answer
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
Posted Date:
Students also viewed these accounting questions
-
The monthly cash budgets for the second quarter of 2010 follow ($000 omitted) for Morrison Mfg. Co. A minimum cash balance of $30,000 is required to start each month, and a $100,000 line of credit...
-
For the second quarter of 2009, Apple Computer sold 5.21 million iPhones, up 626% from a year earlier. How many iPhones did Apple sell in the second quarter of 2008 (rounded to the nearest 10,000)?
-
The monthly cash budgets for the second quarter of 2019 follow ($000 omitted) for Forest Hills Mfg. Co. A minimum cash balance of $30,000 is required to start each month, and a $100,000 line of...
-
A record company needs to produce 100 gold records at one or more of its three studios. the cost of producing x records at studio 1 is 10 x; the cost of producing y records at studio 2 is 2y 2 ; the...
-
Fortune Systems issues bonds dated January 1, 2011, that pays interest semiannually on June 30 and December 31. The bonds have a $35,000 par value, an annual contract rate of 4%, and mature in four...
-
What are represented by the symbols and ? By 1/ and 1/? By ?
-
1. You select a card from a standard deck of 52 playing cards. Find the probability that the card is a 4 or an ace. 2. You roll a die. Find the probability of rolling a number less than 3 or rolling...
-
On January 1, 2011, P Company purchased an 80% interest in S Company for $600,000, at which time S Company had retained earnings of $300,000 and capital stock of $350,000. Any difference between book...
-
An ASTM A572 Grade 50 steel bar is attached to a rigid wall at one end and a spring at the other end, with the other end of the spring being attached to a rigid wall, as shown below. The bar is 20 cm...
-
Based on the information provided in the case, illustrate the pricing game between Sony and Microsoft using a 2-by-2 payoff matrix when Sony and Microsoft charge for their games $399, or lower price...
-
What is the price of a bond that has a twelve-year maturity, a coupon rate of 3.45 percent, a par value of $1,000, and pays interest semiannually? The current market yield is 4.56 percent.
-
Assume you have applied to two different universities A and B. In the past, 30 % of students who applied to University A were accepted, while University B accepted 45 % of the applicants. Assume...
-
The following picture helps you obtain the probability that events A, B, and C, happen jointly. Write down the formula for obtaining P(ANBNC).
-
Suppose you flip a coin twice and roil a die twice. What is the probability that you will toss 1 head and 1 tail and will roll two 6s?
-
Rah Rah College has a limited number of dorm rooms available to students, so every year students participate in a lottery to determine whether they will have school housing next year. Suppose that...
-
A hospital found that the probability of a power failure in a certain time period is .00001. To guarantee the functioning of the hospital, the hospital installed a backup system that has a...
-
An average-sized home refrigeration unit has a 1/17-hp fan motor for blowing air over the inside cooling coils, a 1/22-hp fan motor for blowing air over the outside condenser colls, and a 0.18-hp...
-
DC has unused FTC carryover from 2017 in the separate category for GC income as the result of income generated by a foreign branch. The income was foreign source general category income. In 2018 the...
-
Agrico, Inc., accepted a 10-month, 13.8% (annual rate), $4,500 note from one of its customers on June 15; interest is payable with the principal at maturity. Required: a. Use the horizontal model or...
-
Eddie Lander Tie Co. manufactures neckties and scarves. Two overhead application bases are used; some overhead is applied on the basis of raw material cost at a rate of 120% of material cost, and the...
-
Selected information taken from the financial statements of Verbeke Co. for the year ended December 31, 2010, follows: Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
Political scientists are interested in knowing what factors affect voter turnout in elections. One such factor is the unemployment rate. Data collected in presidential election years since 1964 show...
-
You are the manager of a large department store. Over the years, youve found a strong correlation between your September sales and the number of employees youll need to hire for peak efficiency...
-
Youve been hired by your colleges alumni association to research how past contributions were associated with alumni income and years that have passed since graduation. It is found that R 2 = 0.36....
Study smarter with the SolutionInn App