Please help me ales, Inc., sells garden supplies. Management is planning its cas

Question

Please help me

ales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for Aprit-July are April May iihimi,June July $ 780,000 $940,000 $ 640,000 $ 550,000 546,000 658,000 448,000 385.000 Sales Cost of goods sold Gross margin Selling and administrative expenses 234,000 282.000 192,000 165,000 94,000 113,000 75,000 55,000 Selling expense Administrative expense 52.000 71.200 46,400 2.000 146 000 184 200 121,400 107.000 s 88,000 s 97.800 S 70,600 $ 58,000 Total selling and administrative expenses Net operating income includes $36,000 of depreciation each month b Sales are 20% for cash and 80% on account C: Sales on account are collected over a three-month period with 10% collected in the month of sale: 70% collected in the first month following the month of sale and the remaining 20% collected in the second month following the month of sale February's sales totaled S300 000, and March's sales totaled

Explanation / Answer

Answer:1

Answer:2a

Answer:2b

Answer:3

Schedule of expected cash collections Particulars April May June Quarter Cash sales 104000 144000 84000 332000 Sales on account: Feb 12000 12000 March 192000 24000 216000 April 41600 332800 41600 416000 May 57600 460800 518400 Jun 33600 33600 Total cash collections 349600 558400 620000 1528000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.