Question: Yoder has 12 500 in cash on hand on January

Yoder has $ 12,500 in cash on hand on January 1. Refer to Short Exercises S22- 3, S22- 9, and S22- 10 for sales, cash receipts, and cash payment information. Assume direct labor costs and manufacturing costs are paid in the month incurred. Additionally, assume Yoder has cash payments for selling and administrative expenses including salaries of $ 50,000 plus commissions that are 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $ 10,000. Prepare a cash bud-get for January and February. Round to the nearest dollar. Will Yoder need to borrow cash by the end of February?
Exercises S22- 3
Yoder Company manufactures luggage sets. Yoder sells its luggage sets to department stores. Yoder expects to sell 1,500 luggage sets for $ 175 each in January, and 1,750 luggage sets for $ 175 each in February. All sales are cash only. Prepare the sales budget for January and February.
S22- 9
Now assume that Yoder’s sales are collected as follows: 50% in the month of the sale 30% in the month after the sale 18% two months after the sales 2% never collected November sales totaled $ 300,000 and December sales were $ 325,000. Prepare a schedule for the budgeted cash receipts from customers for January and February. Round answers to the nearest dollar.

View Solution:

Sale on SolutionInn
  • CreatedJanuary 16, 2015
  • Files Included
Post your question