Determine october expected cash payments for purchases

Assignment Help Accounting Basics
Reference no: EM131988818

Questions -

Q1. Computing budgeted cash payments for purchases

Powerdyne Company's cost of goods sold is consistently 60% of sales. The company plans to carry ending merchandise inventory for each month equal to 40% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 50% of the purchases made during a month is paid for in that month. Another 35% is paid for during the first month after purchase, and the remaining 15% is paid for during the second month after purchase.

Expected dollar sales are:

August (actual), $150,000

September (actual), $350,000

October (estimated), $200,000

November (estimated) $300,000.

Use this information to determine October's expected cash payments for purchases.

Q2. Budgeted Cash Receipts

Emily Company has sales on account and sales for cash. Specifically, 60% of its sales are on account and 40% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $525,000 for April, $535,000 for May, and $560,000 for June. The beginning balance of Accounts Receivable on April 1 is $300,000.

Prepare a schedule of budgeted cash receipts for April, May, and June.

Reference no: EM131988818

Questions Cloud

Full-employment rate of unemployment : What is the relationship of frictional, structural, seasonal and cyclical unemployment to the full-employment rate of unemployment
Demonstrate an understanding of various uses of cryptology : Demonstrate an understanding of the various uses of cryptology. Differentiate between asymmetric and symmetric encryption.
Productivity growth and rising living standard : In recent years, a number of prominent economists have argued that if a larger share of national output were devoted to investment, the result.
Impact on unemployment from such a movement : If actual real GDP moves from being equal to potential GDP to being less than potential real GDP, does the GDP gap become positive or negative?
Determine october expected cash payments for purchases : Powerdyne Company's cost of goods sold is consistently 60% of sales. Use this information to determine October's expected cash payments for purchases
List at least three indicators : What do you call one that typically switches into a new phase at around the same time as the business cycle switches into a new phase?
What is the price index for 2002 : Assuming that 2001 is the base year. What is the price index for 2002? In 2002, the price index is _____. ( round your answer to two decimal places).
Prepare monthly cash budgets : The company has a cash balance of $30,000 and a loan balance of $60,000 at January, Prepare monthly cash budgets
Process of the quantitative research design process : HI6008 - Research questions should be linked to Literature Problems, Gaps, and Hypothesis - Students should propose the process of the Quantitative Research

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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