Silver Company makes a product that is very popular as a Mother’s Day gift. Thus
ID: 2453916 • Letter: S
Question
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:
Required 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Silver Company Schedule of Expected Cash Collections April May June Total February sales March sales April sales May sales June sales Total cash collections 0 0 0 0 0 0 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date, Silver Company Accounts receivable at June 30 May sales June sales Total accounts receivable at June 30$ 0Explanation / Answer
1)
Collection in April = 15% * $320000 + 60% of $350000 + 25% of $390000. The other onths have been calculated in the same way.
2)
Notes:
May Sales = 15% of may sales which will be collected in July = $590000 * 15% = $88500
June Sales
= 60% to be collected in July + 15% to be collected in August
= 0.60*$230000 + 0.15 * $230000 = $172500
Silver company Schedule of expected cash collections Month Total monthly sales ($) Collection April May June February 320000 48000 March 350000 210000 52500 April 390000 97500 234000 58500 May 590000 147500 354000 June 230000 57500 Total Collection 355500 434000 470000Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.