Solution-Prepare monthly summary of cash payments

Prepare monthly summary of cash payments

Assignment Help Accounting Basics

Reference no: EM132846088

Question - The Prince Albert Corporation has forecast the following sales for the first seven months of the year.

January $26,000

February 28,000

March 30,000

April 36,000

May 26,000

June 32,000

July 34,000

Monthly material purchases are set equal to 20 percent of forecasted sales for the next month. Of the total material costs, 30 percent are paid in the month of purchase and 70 percent are paid in the following month. Labour costs will run $5,600 per month, and fixed overhead is $10,000 per month. Interest payments on the debt will be $4,600 for both March and June. Finally, the Prince Albert sales people will receive a 1.0 percent commission on total sales for the first six months of the year, to be paid on June 30.

Required - Prepare monthly summary of cash payments for the six months from January through June.

Reference no: EM132846088

Questions Cloud

Where do expect to be five years from now : Why should we hire you when we have applicants with more experience? Where do you expect to be five years from now? Describe a time that you worked successfully

What is the amount of the consolidated retained earnings : Silk reported net income of $30,000 in 2020 and $52,000 in 2021. What is the amount of the consolidated retained earnings as at December 31, 2021

What lacked was lack of confidence in growing organization : What lacked was the lack of confidence in growing the organization. A strategy that might improve the organizational climate return the organization to optimal

Analyze characteristics and behaviors of effective managers : One of the primary roles of a manager is to plan. Are you a natural planner? What makes a good planner? What goes into creating a solid plan

Prepare monthly summary of cash payments : Monthly material purchases are set equal to 20 percent of forecasted sales for the next month. Prepare monthly summary of cash payments

What could be done to increase the likelihood of transfer : What could be done to increase the likelihood of transfer of training if the work environment conditions are unfavorable and cannot be changed?

Discuss the implication for an hris in protecting employee : Discuss the implication for an HRIS in protecting employee and employer information. Choose one of the privacy laws (Privacy Act of 1974)

Describe how the ethical dilemma was an ethical trap : Discuss an ethical dilemma that you are aware of in an organization. Describe how the ethical dilemma was an ethical trap. Described scenarios of organizations.

Describe the implications of this change in strategy : Makeup Limited manufactures and sells beauty products. Describe the implications of this change in strategy for Makeup Limited's expenditure cycle

User Account

All Pages

Prepare monthly summary of cash payments

Reference no: EM132846088

Reference no: EM132846088

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT