Solution-Prepare a schedule of expected cash collections

Prepare a schedule of expected cash collections from sales

Assignment Help Managerial Accounting

Reference no: EM132744024

Problem - Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below:

	April	May	June	Total
Budgeted sales (all on account)	$300,000	$500,000	$200,000	$1,000,000

From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000.

Required -

1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

2. What is the accounts receivable balance on June 30th?

Reference no: EM132744024

Questions Cloud

How much is the current service cost : Increase in present value of defined benefit obligation during the year due to changes in actuarial assumptions 40,000. How much is the current service cost

Sampling methodology : A synopsis on the perspective of the sampling methodology used in your selected articles related to public health research studies.

What is the IRR for Project A : Bruin, Inc., has identified the following two mutually exclusive projects: What is the IRR for Project A? What is the IRR for Project B

Review business publications : Your research focus for this course is to review business publications including the Wall Street Journal, major newspapers and business publications

Prepare a schedule of expected cash collections from sales : Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. Prepare a schedule of expected cash collections

Types of insurance available to consumers : Why is it important for health care managers to understand the types of insurance available to consumers? Provide examples.

Compute fixed and variable portions of the maintenance costs : ABC Company maintains a heavy schedule of maintenance for its fleet of trucks. Compute fixed and variable portions of the maintenance costs

Examples of horizontal gene transfer : Describe three examples of horizontal gene transfer and explain how we can use these processes to create genetically modified organisms (GMOs).

Discuss the portrayal of women in pakistani advertisements : Discuss the portrayal of women in Pakistani advertisements do you think there has been any evolution or change in this portrayal over the past decade.

User Account

All Pages

Prepare a schedule of expected cash collections from sales

Reference no: EM132744024

Reference no: EM132744024

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT