Mail-order business, Laura’s Dress Delivery operates a

Mail-order business

Assignment Help Financial Accounting

Reference no: EM13823900

Laura’s Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $580,000 in December. Because Laura’s Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 21 percent drop in sales for January. The balance in the Accounts Receivable account on December 31 was $97,900 and is budgeted to be $72,100 as of January 31. Laura’s Dress Delivery normally collects accounts receivable in the month following the month of sale.

Required:

a. Determine the amount of cash Laura’s Dress Delivery expects to collect from accounts receivable during January.

Reference no: EM13823900

Questions Cloud

What is the approximate net present value : Du Monde Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $100,000. The equipment will have an initial cost of $400,000 and have a 5 year life. The sa..

Labor cost-unskilled labor : Albertville Inc produces leather handbags. The sales budget for the next four months is: July 5,000 units, August 7,000, September 7,500, October 8,000. Albertville Inc's ending finished goods inventory policy is 10% of the following month's sales. E..

Fair values are used and adjusted each balance sheet date : Flo Choi owns a small business and manages its accounting. Her company just finished a year in which a large number of borrowed funds were invested in a new building addition, as well as in equipment and fixture additions. If fair values are used and..

Governmental mandatory spending-gramm-rudmand-hollings bill : Which of the following is true concerning the consumption habits of ALL levels of government? Which of the following is an example of governmental MANDATORY SPENDING? During which year did the first federal budget surplus occur within the last three ..

Mail-order business : Laura’s Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $580,000 in December. Because Laura’s Dress Delivery is in the mail-order business, all sales are made on account. Determine the..

Loan-annual interest and equal annual payments of interest : Your Corporation borrowed $500,000 on the instalment basis on January 1 of Year one. The note provides for 6% annual interest and equal annual payments of interest and principal of $48,912 on December 31 of each year the loan is outstanding. How much..

Upscale living environment-medical care for retirees : Southeast Healthcare, Inc..(SHI) is a holding company that operates, on a for-profit basis, several hospitals and clinics throughout the southern United States. SHI has been very successful in all of its healthcare ventures. As a result, SHI expanded..

Determine the amount of cash payments budgeted for inventory : Widden Company, which sells electric razors, had $400,000 of cost of goods sold during the month of June. The company projects a 9 percent increase in cost of goods sold during July. Determine the amount of purchases budgeted for July. Determine the ..

About same as its income measured under variable costing : Samanta Shoes, which was launched by entrepreneurs Samanta and Kelvin Joseph, produces high-quality shoes in unique styles and limited quantities. The founders of Samanta Shoes use variable costing in their business decisions. If Samanta Shoes used a..

User Account

All Pages