Xyz inc had actual sales of 150000 in february and 160000

Assignment Help Accounting Basics

Reference no: EM13598873

XYZ, Inc. had actual sales of $150,000 in February and $160,000 in March. The firm's managers estimate that sales in April, May, June and July will be $175,000, $180,000, $185,000, and $190,000, respectively. Purchases are 40% of the next month's sales. Sales receipt patterns indicate that 60% of sales are received the same month as the sale. 30% are collected one month later and 10% are collected two months later. 50% of purchases are paid in the same month as the purchase and 50% are paid the following month. Assume that the firm has no other charges (either in Accounts Receivable or Accounts Payable) during these months.

a. Compute cash receipts from sales and cash payments from purchases in April, May and June (doing each month separately and showing your work).

b. What is the estimated Accounts Payable balance on June 30?

c. Extra credit (1 point) What is the estimated Accounts Receivablebalance on June 30?

Reference no: EM13598873

Questions Cloud

Prepare and income statement in comparative form stating : revenue and expense data for rogan technologies co. are as follows.2010 2009sales 500000 440000cost of goods sold

Compute the present value of the amounts to be received : based upon 50000000 or 20 equal annual payments of 250000.compute the present value of the amounts to be received below

Compute all direct material and direct labor variances be : hpc inc. has developed a standard pricing system for its products. the variable cost standards based on expected output

Compute the break-even point in 1 units and 2 : nbsphumphrey company bottles and distributes no-fizz a fruit drink. the bever? age is sold for 50 cents per 16-ounce

Xyz inc had actual sales of 150000 in february and 160000 : xyz inc. had actual sales of 150000 in february and 160000 in march. the firms managers estimate that sales in april

A local retail business owner is preparing her june budget : a local retail business owner is preparing her june budget and plans on sales of 11000 units 5 per unit or 55000 with

Cash production costs are budgeted at 6 per unit produced : carter company has projected sales and production in units for the second quarter of next year as followsapril may

Wisconsin warning co plans to finance its operations by : wisconsin warning co. plans to finance its operations by issuing 20000000 of 10 year 10 bonds with interest payable

Sales are 30 for cash and 70 on credit all payments on : as of december 31 2010 the end of the prior quarter the companys general ledger showed the following account

User Account

All Pages