All sales are on account. Bonita expects collections to be 50% in the month of sale,...
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All sales are on account. Bonita expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows: 1. Credit sales: November 2022, $200,000: December 2022, $282,000 2. Purchases of direct materials: December 2022, $91.000 3. Other receipts: January-collection of December 31, 2022, notes receivable $5,000; February-proceeds from sale of securities $7,000 4. Other disbursements: February-payment of $20,000 for land The company expects its cash balance on January 1, 2023, tobe $50,000. It wants to maintain a minimum cash balance of $41,000. Prepare schedules for (1) the expected collections from customers. All sales are on account. Bonita expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows: 1. Credit sales: November 2022, $200,000: December 2022, $282,000 2. Purchases of direct materials: December 2022, $91.000 3. Other receipts: January-collection of December 31, 2022, notes receivable $5,000; February-proceeds from sale of securities $7,000 4. Other disbursements: February-payment of $20,000 for land The company expects its cash balance on January 1, 2023, tobe $50,000. It wants to maintain a minimum cash balance of $41,000. Prepare schedules for (1) the expected collections from customers.
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Related Book For
Intermediate Financial Management
ISBN: 978-1111530266
11th edition
Authors: Eugene F. Brigham, Phillip R. Daves
Posted Date:
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