Glenvale Furniture has projected sales of its product for the next six months as follows. January 80
Question:
Glenvale Furniture has projected sales of its product for the next six months as follows.
January | 80 units |
February | 180 units |
March | 200 units |
April | 160 units |
May | 60 units |
June | 140 units |
The product sells for $40 each. Credit sales account for 50% of sales; 60% are collected in the month of sales, and the remainder are collected in the following month.
All expenses and purchases are paid for in the same month they are incurred as follows:
Operating expenses are expected to be $1,500 each month.
Purchases are expected to be 20% of the expected sales each month.
Required:
a. schedule of expected cash collections for the second quarter. (10 marks)
b. cash Budget for the second quarter, assuming that Glenvale ended the first quarter with a cash balance of $3,000.
Accounting Business Reporting For Decision Making
ISBN: 9780730369325
7th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond