Estimate the monthly cash collections for June

Assignment Help Financial Accounting
Reference no: EM132883610

Question - Logan Township acquired its water system from a private company on June 1. No receivables were acquired with the purchase. Therefore, total accounts receivable on June 1 had a zero balance.

Logan plans to bill customers in the month following the month of sale, and 70% of the resulting billings will be collected during the billing month. 90% of the remaining balance should be collectable in the next following month. The remaining uncollectible amounts will relate to citizens who have moved away. Such amounts are never expected to be collected and will be written off.

Water sales during June are estimated at $4,000,000, and expected to increase 30% in July. August sales will be the same as July sales.

Estimate the monthly cash collections for June, July, August, and September.

Reference no: EM132883610

Questions Cloud

ES961-10 Logistics & Operations Management Assignment : ES961-10 Logistics & Operations Management Assignment Help and Solution, University of Warwick - Assessment Writing Service
How blockchain may be used in that industry : For instance, how would training occur for your team, what strategies might you use, what security methods may you recommend be used?
Motivate employees and enhance performance : What are some strategies for managing poor performance and how and when you would use development plans to improve performance issues.
Radical technique for determining systems : Compare one traditional, contemporary, and radical technique for determining systems requirements during analysis.
Estimate the monthly cash collections for June : Water sales during June are estimated at $4,000,000, and expected to increase 30% in July. Estimate the monthly cash collections for June
Discuss difficulties in measuring intelligence of machines : Discuss the difficulties in measuring the intelligence of machines. Discuss the differences between machine learning and deep learning.
Internet systems developments software technologies : Analyze how the selected Internet systems developments software technologies support Pine Valley Furniture's core business processes.
Analyze the history of caesar cypher : Analyze the history of Caesar Cypher and its impact on cryptography. You must use at least one scholarly resource. Every discussion posting must be
Find the gross margin for Pacific for the latest quarter : Assume that direct labour is a variable cost and that there was no beginning or ending inventories. Find the gross margin for Pacific for the latest quarter

Reviews

Write a Review

Financial Accounting Questions & Answers

  What was the amount of inventory on January at cost

At the end of 2019, the branch reported an inventory of P15,000. What was the amount of inventory on January 1, 2019 at cost

  Make the stockholders equity section of the balance sheet

Retained Earnings $44,900; and Treasury Stock, 590 shares, $12,980. Make the stockholders' equity section of the balance sheet

  Find what will portfolio new beta be after the transaction

What will the portfolio's new beta be after these transactions? The portfolio has a beta of 1.1. You are considering selling $100,000 worth.

  Calculate the NPV and IRR

Using a spreadsheet program like Excel, calculate the NPV and IRR of the following scenario:

  Use the gross method of accounting for sales discounts

Make all journal entries necessary to record both the sales and the cash collections. Use the gross method of accounting for sales discounts.

  How much higher would company first-year net income

How much higher (or lower) would company’s first-year net income have been if absorption costing had been used rather than variable costing? Show computations.

  Prepare income statement for morrill law offices

Prepare income statement for Morrill Law Offices for the month ending November 30, 2012. Morrill Law Offices had the transactions

  At what production level would x company be indifferent

X Company currently makes 2,300 units of a unique part, At what production level would X Company be indifferent between making the part and buying it?

  Temple industrial production cost report

Temple Industrial’s production cost report for its Packaging Department reveals that the cost per equivalent unit started and completed in November was $165. The same report reveals that the cost per equivalent unit transferred out of the Packaging D..

  Question 1 is corporate america in require of tighter

question 1 is corporate america in require of tighter regulation to curb the questionable excesses and outright fraud

  Complete journal entries

Complete journal entries: Jan. 1 Accepted Kent's 90 days, 10% note, as settlement of an outstanding. Received payment in full from Sam's. for outstanding note & interest

  Company should record the new heating system

A company bought new heating system for $130,000 and was given a trade-in of $87,000 on an old heating system, so the company paid $43,000 cash with the trade-in. The old system had an original cost of $120,000 and accumulated depreciation of $48,000..

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