Prepare a schedule of expected cash collections

Assignment Help Financial Accounting
Reference no: EM13509359

Randall Company is a merchandising company that sells a single product. The company's inventories, production, and sales in units for the next three months have been forecasted as follows:


October November December
Beginning inventory 12,000 12,000 12,000
Merchandise purchases 62,000 72,000 37,000
Sales 62,000 72,000 42,000
Ending inventory 12,000 12,000 7,000

Units are sold for $11 each. One fourth of all sales are paid for in the month of sale and the balance are paid for in the following month. Accounts receivable at September 30 totaled $452,000.

Merchandise is purchased for $6 per unit. Half of the purchases are paid for in the month of the purchase and the remainder are paid for in the month following purchase. Selling and administrative expenses are expected to total $122,000 each month. One half of these expenses will be paid in the month in which they are incurred and the balance will be paid in the following month. There is no depreciation. Accounts payable at September 30 totaled $292,000 includes selling and administrative payables.

Cash at September 30 totaled $82,000. A payment of $302,000 for purchase of equipment is scheduled for November, and a dividend of $202,000 is to be paid in December.

Required:

Prepare a schedule of expected cash collections for each of the months of October, November, and December. (Omit the "$" sign in your response.)

 

Schedule of Expected Cash Collections

October November December
Sales $ $ $
September accounts receivable $

October sales
$
November sales

$
December sales






Total cash collections $ $ $








 

Prepare a schedule showing expected cash disbursements for merchandise purchases and selling and administrative expenses for each of the months October, November, and December. (Omit the "$" sign in your response.)

Schedule of Expected Cash Disbursements

October November December
Merchandise purchases $ $ $
Selling and administrative expenses






Total incurred $ $ $







Disbursements, previous month $ $ $
Disbursements, current month






Total $ $ $








 

Prepare a cash budget for each of the months October, November, and December. There is no minimum required ending cash balance. (Input all amounts as positive values. Omit the "$" sign in your response.)

Randall Company
Cash Budget

October November December
Beginning cash balance $ $ $
Add cash receipts






Total cash available $ $ $







Disbursements


Accounts payable


Payment for equipment


Payment for dividend






Total disbursements






Ending cash balance $ $ $






 

Reference no: EM13509359

Questions Cloud

Compute contribution margin per pound of materials used : Demand for the company's products is very strong, with far more orders each month than the company can produce with the available raw materials.
What is the average force on the net due to the boy : A boy of mass 60.8 kg is rescued from a hotel fire by leaping into a firefighters' net. The window from which he leapt was 9.5 m above the net. What is the average force on the net due to the boy during the interval
Describe a polynomial-time algorithm to test dependency : Describe a polynomial-time algorithm to test dependency-preservation.
Calculate the normal force of the floor on the box : A girl is using a rope to pull a box that has mass of 30kg across a level surface with constant velocity. What is the normal force of the floor on the box
Prepare a schedule of expected cash collections : Prepare a schedule showing expected cash disbursements for merchandise purchases and selling and administrative expenses for each of the months October, November, and December. (Omit the "$" sign in your response.)
Identify the type of business-level : Identify the type of business-level or corporate-level cooperative strategy the firm is following.
If each instance for r listed above is legal what can you : If each instance for R listed above is legal, what can you say about the FD A → B?
What is the max angle through which the load swings : A load of weight W is suspended from a cable of length L on a construction vehicle. What is the max angle through which the load swings
Quantitative analysis : Quantitative Analysis

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Preparation of journal for various transactions in

preparation of journal for various transactions in corporate accounting.on 123107 rich corporation had the following in

  What would be the following the rnoa

What would be the following the RNOA of the subsequent company?

  Prepare an income statement for year ended 2013

Prepare an adjusted trial balance, prepare an income statement for year ended 2013 and a balance sheet as of December 31, 2013 - Prepare and post closing entries.

  How much overhead should be allocated to ending goods

During the current period, Department A finished and transferred 50,000 units to Department B. Of the 50,000 units, 20,000 were 1/5 complete at the beginning of the period and 30,000 were started and completed during the period.

  Questions in capital budgeting

Multiple choices in capital budgeting - Coffer Co. is analyzing two projects for the future.Assume that only one project can be selected.

  What are tax aspects of this transaction for mark farris

The asset is sold at the end of 2008 for $130,800. What are tax aspects of this transaction for Mark Farris, a 60% owner of the company?

  What was the biggest cash outflow during the year

Does the company employ the direct or indirect method of accounting for operating cash flows and what was the biggest cash outflow during the year?

  What is amount of depletion that yoder should expense

During 2012, 500,000 tons were removed and 400,000 tons were sold. What is the amount of depletion that Yoder should expense for 2012?

  Explain why bank of america in financial services industry

Explain why Bank of America, in the financial services industry, has a relatively low rate of operating leverage, while a manufacturing firm like Honda has a much higher degree.

  Question the following are partial income statement account

question the following are partial income statement account balances taken from the 31st december 2013 year-end trial

  Prepare a forecast statement of cash flows

Prepare a forecast statement of cash flows for the six months to 31 March 2012 and an income statement for the six months ended on that date

  Calculating additional finance requirementsthe cfo of ipod

calculating additional finance requirements.the cfo of ipod accessories inc. has asked for your help in estimating the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd