Evaluate the amount of cash receipts for march

Assignment Help Financial Accounting

Reference no: EM1376497

One Stop Jersey Stop (OSJS) sells sports jerseys. OSJS's management accountant has gathered the subsequent information for OSJS.

Month Sales Purchases
February $42,000 $17,640
March $48,000 $20,160
April $54,000 $22,680
May $50,000 $21,000

Cash is collected from customers in the subsequent manner:
Month of the sale 25%
First month following the sale 40%
Second month following the sale 20%
Third month following the sale 10%
Uncollectable 5%

Purchases of inventory are paid as follows:
Cash payment in month of purchase 40%
Cash payment in month following purchase 60%

Additional information:
Labor costs equal 19 percent of sales
Other operating costs equal $15,000 per month that amount includes $4,000 of depreciation.
Labor and operating costs are paid in the month incurred.
The cash balance on 1^st April is $4,000.

Required: Show all supporting calculations for credit.
Evaluate the amount of cash receipts for March, April and May.
Evaluate the amount of cash disbursements for March, April and May.
Evaluate the cash balance at 31^st May.
Show two important reasons why OSJS should prepare cash budgets.

Reference no: EM1376497

Questions Cloud

Determine the rule changes and non wage issues : The National Hockey League locked out its gamers in a yearlong battle in the union and the owners. There were monetary issues as well as non monetary issues that affected the lockout.

Solving question on relevant cost : Suppose you just begun a summer internship with the successful management consulting company of Kirk, Spock, and McCoy. Your 1st day on the job was a busy one, as following problems were demonstrate to you.

Determine the propriety of harriers plans : Harrier repurchases the stock in 2011. On its 2010 corporate income tax return, Harrier plans to deduct a net capital loss of $3,000. Determine the propriety of Harrier's plans.

Methods of inventory costing : Why do you believe we have four? Do we need four? What are the advantages and disadvantages of having four methods?

Evaluate the amount of cash receipts for march : Evaluate the amount of cash receipts for March, April and May and evaluate the amount of cash disbursements for March, April and May.

Press conferences during presidential campaign : I heard a story about few professional actors who were planted in press conferences during past presidential campaign to pose questions to President Bush that were staged so that he had a prepared response.

Evaluate direct materials cost per equivalent unit : Evaluate both the direct labor cost and the direct materials cost per equivalent unit.

Evaluate the directional impact accounting : Evaluate the directional impact accounting difference described above would have on the subsequent ratios calculated under IFS and US GAAP.

Question about thinking strategies : Give an appropriate application in workplace for two of the three following thinking strategies,

User Account

All Pages