Make schedule of receipts from accounts receivable

Assignment Help Managerial Accounting
Reference no: EM132607520

Bluebird Ltd has provided the estimates below for the July-September quarter in 2017.

                                 July             August                September

                                     $                     $                              $

Sales                     13,000           14,000                 15,000

Purchases                 9,400              8,000               10,000

Operating expenses         3,600          6,400                 5,000

You are also given the following additional information:

35% of sales are cash sales, the remaining 65% credit sales are collected as follows:

  1. 30% in the month of sale
  2. 40% in the month after sale
  3. 28% 2 months after sale
  4. 2% lost in bad debts
  • Sales in the months of May and June were $11,000 and $10,000 respectively.
  • Operating expenses include depreciation each month of $900. All expenses and purchases are paid for in the same month they are incurred.
  • The firm expects to sell some old machinery for $7,000 in August. New machinery worth $9,500 will be purchased in September.
  • The cash balance on 1st July 2017 is $5,700.

REQUIRED:

Question a) schedule of receipts from accounts receivable showing the collections in the three months July to September.

Question b) cash budget for Bluebird Ltd for the three months July to September.

Reference no: EM132607520

Questions Cloud

How do determine the simple rate of return on the investment : How do Determine the simple rate of return on the investment. The management of Nixon Corporation is investigating purchasing equipment
Compute the standard cost of ingredients for one gallon wine : Cheyenne estimates that 2% of the grape concentrate is wasted, 10% of the sugar is lost, Compute the standard cost of ingredients for one gallon wine
Develop your own definition of the word work : Develop your own definition of the word work. Using this definition, explain whether you think everyone naturally has a desire to work. Is there any work.
Statistically significant-clinically significant evidence : What is the difference between statistically significant evidence and clinically significant evidence?
Make schedule of receipts from accounts receivable : Bluebird Ltd, Make schedule of receipts from accounts receivable showing the collections in the three months July to September.
What do you think would be important to treat first : A client visits your office for therapy, he says that he has had severe depression because he hasn't been able to find a job for a year.
Compute the overhead volume variance : In October, Vaughn Company reports 13.500 actual direct labor hours, Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours
Complete an implementation of Wangs algorithm : Complete an implementation of Wangs algorithm - Write a function entails which takes two Formulas f and g and returns True if and only if formula g
Compute the overhead controllable variance : In October, Metlock Company reports 18,700 actual direct labor hours, Compute the overhead controllable variance

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How many units must the company sell to reach

How many units must the company sell to reach the break-even point, if the variable costs of sale are $ 1.40 per unit, the variable costs of production?

  What is contribution margin ratio and break-even point

Calculate how many shirts must sell to have a TOI (Target Operating Income) of $250,000. Prepare an analysis that checks your work.

  What is the internal rate of return of the investment

What is the internal rate of return of the investment, assuming an inflation rate of 4 percent applicable to labor and costs other than depreciation? Should the company make the investment if its cost of capital is 10 percent?

  How much cash is expected for payments on account in june

How much cash is expected for payments on account in June? Wight Inc. purchases raw materials on account for use in production

  Balance in accounts receivable was

Before this entry was made, the balance in accounts receivable was $100,000 and the balance in the allowance account was $9,000. The net realizable value of accounts receivable before and after the write-off entry was

  Prepare the journal entry to record the interest revenue

Prepare the journal entry to record the interest revenue on December 31, 2017. Prepare the journal entry to record the interest received on January 1, 2018.

  Differences between tax avoidance and tax evasion

Tax avoidance and tax evasion are two very different concepts. Compare and contrast the differences between tax avoidance and tax evasion. Give two examples of each to support your discussion.

  Calculate the sales price per composite unit

Using an income statement format, prove that this is the break-even point. Calculate Tim-Buck-II's break-even point in both dollars and units.

  The percentage of deposits that must be held as reserves

the finance charge and the annual percentage rate of credit along with certain other costs and terms to permit consumers to compare the prices of credit from differing sources.

  What between variable costing income and full costing income

The difference between variable costing income and full costing income to be much greater than if standard inventory levels had been maintained

  Do recommend that mallette purchase the automated system

Do you recommend that Mallette purchase the automated system. Mallette Manufacturing, Inc. produces professional styling blow

  Maintain the same level of net income

How many hammers will have to be sold in June to maintain the same level of net income?

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