Hearthington Pty Ltd sells camping equipment directly to both wholesale and retail customers. Provided below are...

 
 

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Hearthington Pty Ltd sells camping equipment directly to both wholesale and retail customers. Provided below are estimates for three months ending 30 September 2021: August $ September $ 160,000 500,000 July $ 140,000 300,000 70,000 500,000 1,500 60,000 Sales - Retail 200,000 Sales - Wholesale 650,000 70,000 900,000 1,500 50,000 Salaries and wages expense Purchase of Supplies by credit 70,000 800,000 1,500 140,000 3,000 10,000 Administration Proceeds from excessive inventory Utilities expenses Rental expenses 3,000 10,000 3,000 10,000 Depreciation 2,000 2,000 2,000 Additional Information: • Sales to retail customers are cash only. • Sales to wholesale customers are credit only and have 30 days credit term. However, due to disruption with the lockdown during COVID, 20% of wholesale customers are late for payments and pay in the 2nd month after the month of sale. The majority, 80% of wholesale customers continue paying on time, in the month after the month of sale. • Sales - wholesale customers for April, May and June are estimated at $400,000, $600,000 and $700,000. • Sales Commissions to employees is 10% of the total sales and paid a month following the sale • Hearthington has credit purchase arrangement with suppliers. Purchases are paid 2 months following the purchase. Purchases for April, May and June are estimated at $500,000, $650,000 and $500,000 • At the end of each month, Hearthington consolidates and sells excessive inventory at cost for cash. A. Calculate the total cash receipts for July only, using the table provided below: (3 marks) Names of cash receipt items July ($) Total Cash Receipts ? ---- --- ----- --- ----- --- B. Calculate the total cash payments for July only, using the table provided below: (4 marks) Names of cash payment items July ($) Total Cash Payments ? Hearthington Pty Ltd sells camping equipment directly to both wholesale and retail customers. Provided below are estimates for three months ending 30 September 2021: August $ September $ 160,000 500,000 July $ 140,000 300,000 70,000 500,000 1,500 60,000 Sales - Retail 200,000 Sales - Wholesale 650,000 70,000 900,000 1,500 50,000 Salaries and wages expense Purchase of Supplies by credit 70,000 800,000 1,500 140,000 3,000 10,000 Administration Proceeds from excessive inventory Utilities expenses Rental expenses 3,000 10,000 3,000 10,000 Depreciation 2,000 2,000 2,000 Additional Information: • Sales to retail customers are cash only. • Sales to wholesale customers are credit only and have 30 days credit term. However, due to disruption with the lockdown during COVID, 20% of wholesale customers are late for payments and pay in the 2nd month after the month of sale. The majority, 80% of wholesale customers continue paying on time, in the month after the month of sale. • Sales - wholesale customers for April, May and June are estimated at $400,000, $600,000 and $700,000. • Sales Commissions to employees is 10% of the total sales and paid a month following the sale • Hearthington has credit purchase arrangement with suppliers. Purchases are paid 2 months following the purchase. Purchases for April, May and June are estimated at $500,000, $650,000 and $500,000 • At the end of each month, Hearthington consolidates and sells excessive inventory at cost for cash. A. Calculate the total cash receipts for July only, using the table provided below: (3 marks) Names of cash receipt items July ($) Total Cash Receipts ? ---- --- ----- --- ----- --- B. Calculate the total cash payments for July only, using the table provided below: (4 marks) Names of cash payment items July ($) Total Cash Payments ?

Answer rating: 100% (QA)

ANSWER A Calculate the total cash receipts for the month of July Name of Cash r... View the full answer