All sales are on credit 60 percent is collected during the

Reference no: EM13600591

Wilson's retail company is planning a cash budget for the next three months. Estimated sales revenue is as follows:

Month Sales Revenue

January $300,000
February 225,000

Month Sales Revenue

March $200,000
April 175,000

All sales are on credit; 60 percent is collected during the month of sale and 40 percent is collected during the next month. Cost of goods sold is 80 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $41,000 per month and are paid during the month incurred. The ash balance on February 1 is estimated to be $30,000.

Prepare monthly cash statements for February, March, and April.

Reference no: EM13600591

Questions Cloud

Oct 28 paid the dividend declared on september 5dec 31 : context corporation reports the following components of stockholders equity on december 31 2011. common stock-10 par

Assume that the best cost driver that sony had for variable : assume that the best cost driver that sony had for variable factory overhead in the assembly department is machine

Montana timber company is in the process of preparing its : montana timber company is in the process of preparing its budget for next year. cost of goods sold has been estimated

Job 218 was one of the many jobs started and completed : job 218 was one of the many jobs started and completed during the year. the job required 4000 in direct materials and

All sales are on credit 60 percent is collected during the : wilsons retail company is planning a cash budget for the next three months. estimated sales revenue is as follows

To prepare a cash budget the company must determine the : the sales budget for perrier inc. is as forecasted as follows month sales revenue may 120000 june 160000 july 180000

Of two corporations organized at approximately the same : of two corporations organized at approximately the same time and engaged in competing businesses one issued 150 par

What effect does this transaction have on revenue or : a corporation reacquires 25000 shares of its own 10 par common stock for 1000000 recording it at cost.a. what effect

What is the effect of the stock dividend on the : an owner of 1000 shares of simmons company common stock receives a stock dividend of 6 shares. a. what is the effect of

User Account

All Pages