Preparenbsp a cash receipts and payments schedule based on

Assignment Help Financial Accounting

Reference no: EM13356175

Prepare a cash receipts and payments schedule based on the details furnished.

Carter Company has projected sales and production in units for the second quarter of next year as follows:

	April	May	June
Sales	60,000	40,000	50,000
Production	50,000	50,000	60,000

Required:

a. Cash production costs are budgeted at $6 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses (all of which are paid in cash) amount to $120,000 per month. The accounts payable balance on March 31 totals $192,000, all of which will be paid in April. Prepare a schedule for each month showing budgeted cash disbursements for Carter Company.

b. Assume that all units will be sold on account for $15 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on March 31 totaled $510,000 $(90,000 from February's sales and the remainder from March). Prepare a schedule for each month showing budgeted cash receipts for Carter Company.

Reference no: EM13356175

Questions Cloud

Compute the necessary requirements on the basis of : compute the necessary requirements on the basis of detailscranberry corporation income statement in

Bad debt expenses debited in the income statement based on : bad debt expenses debited in the income statement based on the details.bad debts analysis allowance account nbspon

Answer the following questions based onnbsp bank : answer the following questions based onnbsp bank reconciliationprepare a bank reconciliation as of august 31 from the

Prepare journal entrieson the lease and sublease detailson : prepare journal entrieson the lease and sublease detailson july 1 2004 harper company signed a contract to lease space

Preparenbsp a cash receipts and payments schedule based on : preparenbsp a cash receipts and payments schedule based on the details furnished.carter company has projected sales and

Multiple choice questions in accounts fundamentals1the : multiple choice questions in accounts fundamentals1.the matching rule relates to credit losses by stating that bad debt

Multiple choice questions based on fundamentals in : multiple choice questions based on fundamentals in accounting1.on january 1 a machine with a useful life of five years

Multiple choice questions1 recording depreciation expense : multiple choice questions1. recording depreciation expense each period is necessary in accordance with the a.matching

Compute sustainable growth rateinkheart inc has a profit : compute sustainable growth rateinkheart inc has a profit margin of 11 and a retention ratio of 70. last year the firm

User Account

All Pages