Compute the accounts receivable as of that date

Assignment Help Financial Accounting
Reference no: EM13490457

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

Budget 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 following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000.

1)      Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

2)      Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.

 

Reference no: EM13490457

Questions Cloud

The small amount of sodium hydroxide is added to the buffer : Suppose a buffer solution is made from formic and, HCHO2, and sodium formate, NaCHO2. What is the net ionic equation for the reaction that occurs when a small amount of sodium hydroxide is added to the buffer
Determine the entropy change of the system : A 12.7-kg block initially slides at 13.1 m/s on a flat rough surface and eventually stops. what is the entropy change of the system
Prepare the company cash budget for the upcoming fiscal year : The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that int..
Calculate the efficiency of the engines otto cycle : An outboard motor for a boat is cooled by lake water at 14.7°C and has a compression ratio of 14.9. Assume that the air is a diatomic gas. Calculate the efficiency of the engine's Otto cycle
Compute the accounts receivable as of that date : 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 following sale. Bad debts are..
How many units would have to be sold each month to earn : How many units would have to be sold each month to earn a target profit of $90,000? Use the formula method. Verify your answer by preparing contribution format income statement at the target sales level.
Explain how many grams of calcium hydroxide must react : Consider the following chemical equation. Na3PO4(aq) + Ca(OH)2(aq) ? Ca3(PO4)2(s) + NaOH(aq) How many grams of calcium hydroxide must react to give 2.69 g of Ca3(PO4)2
State the cost formula for each mixed expense : Identify each of the company's expenses (including cost of good sold) as either variable, fixed, or mixed.
Explain 4-benzene dimethanol with sigma-decalactone : Although the mechanism of the acid catalyzed ring opening polymerization of sigma-decalactone is slightly different than the mechanism of Sn(Oct)2 catalyzed lactide polymerization, both reactions are of the same type. Identify the reaction type an..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Variable costs before and after split off point

What financial factors should management suppose when deciding whether to sell a product at split off point or process it further

  Changes and error analysis

A company changes from an accounting principle that is not generally accepted to one that is generally accepted. The effect of the change

  What is the noncontrolling interest in juvyn net income

During the current year, Horton reported operational income of $160,000 and dividend income from Juvyn of $160,000 and dividend income from Juvyn of $27,000. At the same time, Juvyn reported operational income of $50,000 and dividend income from H..

  Evaluate a few ratios and compare reed''s results

Evaluate a few ratios and compare Reed's results with industry averages. (Some industry averages are shown in Exhibit.) What do these ratios indicate?

  Illustrate what is the best estimate of current stock price

The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. Illustrate what is the best estimate of the current stock pric..

  Qin its fiscal year 2007 annual report target corporation

qin its fiscal year 2007 annual report target corporation reported the subsequent information about its credit card

  How would her consumption and utility maximizing bundle

Show this utility maximiz- ing combination combination of Pepsi and Coke on the graph. how would her consumption and utility maximizing bundle of Coke and Pepsi change if the price of Coke decreases to 50 cents.

  Computation of profit margin that the firm needs in order

computation of profit margin that the firm needs in order to achieve the promised roe holding everything else

  Compute market inventory turnover and days sales

Compute Market’s inventory turnover and days’ sales in inventory. Assume that there are 365 days in the year. (Round your answers to 2 decimal places.)

  What is meant by the term participative budgeting

Explain what is meant by the term "participative budgeting" and how the term relates to the current situation and How would you recommend the Mr. Sparks change the budgeting procedures to gain more support from department managers

  Assuming howie can earn an rate of return

Assuming Howie can earn an 8% rate of return (compounded annually) on any money invested during this period, which payout option should he choose?

  Consideration of both financial and nonfinancial factors

What should it do- Include a consideration of both financial and nonfinancial factors and What should be done? Include a consideration of both financial and nonfinancial factors.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd