Your response Correct response



Yüklə 2.23 Mb.
səhifə1/21
tarix28.01.2017
ölçüsü2.23 Mb.
  1   2   3   4   5   6   7   8   9   ...   21
Question 1: Score 0/4










Your response

Correct response

Exercise 9-1 Schedule of Expected Cash Collections [LO2]

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.




Requirement 1:

Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)







 

April

May

June

Total

February sales

$

  1   (0%)

$

  1   (0%)

$

  1   (0%)

$

  1   (0%)

March sales

 

  1   (0%)

 

  1   (0%)

 

  1   (0%)

 

  1   (0%)

April sales

 

  1   (0%)

 

  1   (0%)

 

  1   (0%)

 

  1   (0%)

May sales

 

  1   (0%)

 

  1   (0%)

 

  1   (0%)

 

  1   (0%)

June sales

 

  1   (0%)

 

  1   (0%)

 

  1   (0%)

 

  1   (0%)

Total cash collections

$

  1   (0%)

$

  1   (0%)

$

  1   (0%)

$

  1   (0%)




Exercise 9-1 Schedule of Expected Cash Collections [LO2]

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.




Requirement 1:

Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)







 

April

May

June

Total

February sales

$

23,000

$

0

$

0

$

23,000

March sales

 

182,000

 

26,000

 

0

 

208,000

April sales

 

60,000

 

210,000

 

30,000

 

300,000

May sales

 

0

 

100,000

 

350,000

 

450,000

June sales

 

0

 

0

 

40,000

 

40,000

Total cash collections

$

265,000

$

336,000

$

420,000

$

1,021,000




http://mh10.brownstone.net/modules/skin/images/grading/incorrect.gif

Total grade: 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 + 0.0×1/24 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0%

Feedback:




 

April

May

June

Total

February sales:

$230,000 × 10%



$

23,000

 

 

 

 

$

23,000

March Sales:

$260,000 × 70%, 10%



 

182,000

$

26,000

 

 

 

208,000

April sales:

$300,000 × 20%, 70%, 10%



 

60,000

 

210,000

$

30,000

 

300,000

May sales:

$500,000 × 20%, 70%



 

 

 

100,000

 

350,000

 

450,000

June sales:

$200,000 × 20%



 

 

 

 

 

40,000

 

40,000

Total cash collections

$

265,000

$

336,000

$

420,000

$

1,021,000



Observe that even though sales peak in May, cash collections peak in June. This occurs because the bulk of the company's customers pay in the month following sale. The lag in collections that this creates is even more pronounced in some companies. Indeed, it is not unusual for a company to have the least cash available in the months when sales are greatest.









  1   2   3   4   5   6   7   8   9   ...   21


Verilənlər bazası müəlliflik hüququ ilə müdafiə olunur ©azkurs.org 2016
rəhbərliyinə müraciət

    Ana səhifə