Sunland Inc. reports all its sales on credit and pays operating costs in the month incurred. Amounts
Question:
Sunland Inc. reports all its sales on credit and pays operating costs in the month incurred. Amounts for 2020 are:
March | April | May | June | July | |
Budgeted sales | $300500 | $289900 | $320200 | $280600 | $209400 |
Budgeted purchases | $143900 | $119500 | $128800 | $132400 | $89600 |
• | Customer amounts on account are collected 80% in the month of sale and 20% in the following month. |
• | The cost of goods sold is 70% of sales. |
• | Sunland purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month. |
• | Operating expenses are: Salaries, $50400; Depreciation, $11100; Rent, $15700; and Utilities, $13100. |
• | Accounts payable is used only for inventory acquisitions. |
How much is Sunland’s May 31, 2020, budgeted Accounts Receivable?
$320200
$64040
$256160
$314140
2)
Oriole Manufacturing Company has furnished the following information which occurred during May:
Accounts Payable balance at April 30 | $ 28900 |
Purchases on account during May | 150800 |
Cash payments for materials purchased in April | 83000 |
Cash payments for materials purchased in May | 75600 |
The accounts payable account is used only for direct materials. How much will Oriole report as accounts payable on the balance sheet at the end of May?
$21100
$104100
$7800
$13700
3)
A company's past experience indicates that 80% of its credit sales are collected in the month of sale and 19% in the next month. The remainder is never collected. The company’s budgeted credit sales totaled:
January | $99700 |
February | 89000 |
March | 109800 |
How much is expected cash receipts for February?
$104750
$88110
$92062
$90143
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura