Berry expects total sales of $359,000 in January and $405,000 in February. Assume that Berry's sales...

 

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Berry expects total sales of $359,000 in January and $405,000 in February. Assume that Berry's sales are collected as follows: 80% in the month of the sale 10% in the month after the sale 6% two months after the sales 4% never collected November sales totaled $350,000, and December sales were $325,000. Prepare a schedule of cash receipts from customers for January and February. Round answers to the nearest dollar. SOLUTION Schedule of Cash Receipts from Customers Total sales January February Total Cash Receipts from Customers: Nov. sales $350,000, 6% collected in Jan. Dec. sales $325,000, 10% collected in Jan. Dec. sales $325,000, 6% collected in Feb. Jan. sales $359,000, 80% collected in Jan. Jan. sales $359,000, 10% collected in Feb. Feb. sales $405,000, 80% collected in Feb. Total cash receipts from customers January February Jan. sales-$359,000, 6% collected in Mar. Feb. sales-$405,000, 10% collected in Mar. Feb. sales $405,000, 6% collected in Apr. Net Accounts Receivable balance, February 28: $ S22-10 Preparing a financial budget-schedule of cash payments Barnes Company budgeted direct materials purchases of $191,990 in January and $138,610 in February. Assume Barnes pays for direct materials purchases 60% in the month of purchase and 40% in the month after purchase. The Accounts Payable balance on January 1 is $75,000. Prepare a schedule of cash payments for purchases for January and February. Round to the nearest dollar. SOLUTION Schedule of Cash Payment for Purchases Total direct materials purchases Cash Payments Direct Materials: Accounts Payable balance, January 1 January Direct materials purchases (60%) January Direct materials purchases (40%) January February Total January February February Direct materials purchases (60%) Total payments for direct materials Accounts Payable balance, February 28: $ of February's direct materials purchases) Berry expects total sales of $359,000 in January and $405,000 in February. Assume that Berry's sales are collected as follows: 80% in the month of the sale 10% in the month after the sale 6% two months after the sales 4% never collected November sales totaled $350,000, and December sales were $325,000. Prepare a schedule of cash receipts from customers for January and February. Round answers to the nearest dollar. SOLUTION Schedule of Cash Receipts from Customers Total sales January February Total Cash Receipts from Customers: Nov. sales $350,000, 6% collected in Jan. Dec. sales $325,000, 10% collected in Jan. Dec. sales $325,000, 6% collected in Feb. Jan. sales $359,000, 80% collected in Jan. Jan. sales $359,000, 10% collected in Feb. Feb. sales $405,000, 80% collected in Feb. Total cash receipts from customers January February Jan. sales-$359,000, 6% collected in Mar. Feb. sales-$405,000, 10% collected in Mar. Feb. sales $405,000, 6% collected in Apr. Net Accounts Receivable balance, February 28: $ S22-10 Preparing a financial budget-schedule of cash payments Barnes Company budgeted direct materials purchases of $191,990 in January and $138,610 in February. Assume Barnes pays for direct materials purchases 60% in the month of purchase and 40% in the month after purchase. The Accounts Payable balance on January 1 is $75,000. Prepare a schedule of cash payments for purchases for January and February. Round to the nearest dollar. SOLUTION Schedule of Cash Payment for Purchases Total direct materials purchases Cash Payments Direct Materials: Accounts Payable balance, January 1 January Direct materials purchases (60%) January Direct materials purchases (40%) January February Total January February February Direct materials purchases (60%) Total payments for direct materials Accounts Payable balance, February 28: $ of February's direct materials purchases)

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