A3_MGT223H5S2010 - Question One Cash Budget The LaPann...

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1 Question One Cash Budget The LaPann Company has obtained the following sales forecast data: July August September October Cash Sales $ 80,000 $ 70,000 $ 50,000 $ 60,000 Credit Sales $240,000 $220,000 $180,000 $200,000 The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts. Required: (Please explain how you derive the answers.) 1.What is the budgeted accounts receivable balance on September 30? 2. What are the budgeted cash receipts for October?
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2 Question Two Standard Costing Santa Rosa Industries uses a standard-costing system to assist in the evaluation of operations. The company has had considerable trouble in recent months with suppliers and employees, so much so that management hired a new production supervisor (Frank Schmidt). The new supervisor has been on the job for five months and has seemingly brought order to an otherwise chaotic situation. The vice president of manufacturing recently commented that “. . . Schmidt has really done
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A3_MGT223H5S2010 - Question One Cash Budget The LaPann...

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