Planning and Budgeting

Planning and Budgeting - Sales in units 12,000 14,000...

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1. The Smart Company is preparing its cash budget for the month of June. The following information is available concerning its accounts receivable: Estimated credit sales for June $300,000 Actual credit sales for May 225,000 Estimated collections in June for credit sales in June 25% Estimated collections in June for credit sales in May 65% Estimated collections in June for credit sales prior to May $18,000 Estimated write-offs in June for uncollectible credit sales 12,000 Estimated provision for bad debts in June for credit sales in June 10,000 What are the estimated cash receipts from accounts receivable collections in June? A. $221,250 B. $227,250 C. $229, 250 D. $239,250 2. The Waverly Company has budgeted sales for the year as follows: Quarter 1 2 3 4
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Unformatted text preview: Sales in units 12,000 14,000 18,000 16,000 The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units. Scheduled production for the first quarter (in units) is: A. 9,000 B. 12,500 C 13,000 D. 15,500 3. A company is preparing its cash budget for the coming month. All sales are on account. Given the following: Beginning Balance Budgeted Amounts Cash $50,000 Accounts receivable $180,000 Sales $800,000 Cash disbursement $780,000 Depreciation $25,000 Ending accounts receivable balance $ 210,000 What is the expected cash balance for the company at the end of the coming month? A. $15,000 B. $40,000 C. $45,000 D. $70,000...
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