20842_3_example-problems-ch.-9-10

20842_3_example-problems-ch.-9-10 - Question 1 Score 0/4...

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Unformatted text preview: 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 $ $ $ 23,000 March sales 182,000 26,000 208,000 April sales 60,000 210,000 30,000 300,000 May sales 100,000 350,000 450,000 June sales 40,000 40,000 Total cash collections $ 265,000 $ 336,000 $ 420,000 $ 1,021,000 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...
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This note was uploaded on 06/28/2011 for the course BUS 121 taught by Professor O.b during the Spring '11 term at Adams State University.

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20842_3_example-problems-ch.-9-10 - Question 1 Score 0/4...

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