10. Budgeted collections from customers. Roland Company's actual sales on account were as follows: Month February...

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10. Budgeted collections from customers. Roland Company's actual sales on account were as follows: Month February March April Sales on account P 160,000 100,000 180,000 Experience has shown that such sales are usually collected as follows: Percent 20% 2. 3. 4. Month of sale Month after sale Second month after sale Never collected and written off in third month after sale Required: 1. Compute the budgeted cash collections for May, if May sales on account a are budgeted at P150,000. 50 25 5 100 % Compute the balance of accounts receivable at April 30. Compute the balance of accounts receivable at May 31. What steps can the company take to reduce the balance in accounts receivable as of May 31"¹? Evaluate both the risks and advantages (cia) 11. Budgeted cash disbursements. Lantoting Company is preparing its cash budget. The sales budget specifies the following monthly sales, in units: April 9,000 May 10,000 June 12,000 July 11,000 The company's inventory policy is to budget for finished goods inventory equal to 20% of the following month's sales, and to budget for materials inventory equal to 40% of the following month's production requirements. Each unit of finished goods requires three pieces of material at a predicted price of P20 each. Management intends to take advantage of a 2/10, n/30 discount. Required: Compute the budgeted cash disbursements during May for payment of accounts payable for material purchases. Assume materials purchases are made evenly throughout the month. (cga-Canada) 10. Budgeted collections from customers. Roland Company's actual sales on account were as follows: Month February March April Sales on account P 160,000 100,000 180,000 Experience has shown that such sales are usually collected as follows: Percent 20% 2. 3. 4. Month of sale Month after sale Second month after sale Never collected and written off in third month after sale Required: 1. Compute the budgeted cash collections for May, if May sales on account a are budgeted at P150,000. 50 25 5 100 % Compute the balance of accounts receivable at April 30. Compute the balance of accounts receivable at May 31. What steps can the company take to reduce the balance in accounts receivable as of May 31"¹? Evaluate both the risks and advantages (cia) 11. Budgeted cash disbursements. Lantoting Company is preparing its cash budget. The sales budget specifies the following monthly sales, in units: April 9,000 May 10,000 June 12,000 July 11,000 The company's inventory policy is to budget for finished goods inventory equal to 20% of the following month's sales, and to budget for materials inventory equal to 40% of the following month's production requirements. Each unit of finished goods requires three pieces of material at a predicted price of P20 each. Management intends to take advantage of a 2/10, n/30 discount. Required: Compute the budgeted cash disbursements during May for payment of accounts payable for material purchases. Assume materials purchases are made evenly throughout the month. (cga-Canada)

Answer rating: 100% (QA)

Answer Just automatically multiply current planned sales to the percentage of demands when cal... View the full answer