Q.1 Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal I
ID: 2475548 • Letter: Q
Question
Q.1
Schedule of Cash Collections on Accounts Receivable and Cash Budget
Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience:
To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows:
Required:
1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.
2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers.
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Q.2
Cash Payments Schedule
Fein Company provided the following information relating to cash payments:
Fein purchased direct materials on account in the following amounts:
Fein pays 20% of accounts payable in the month of purchase and the remaining 80% in the following month.
In July, direct labor cost was $35,300. August direct labor cost was $35,400. The company finds that typically 90% of direct labor cost is paid in cash during the month, with the remainder paid in the following month.
August overhead amounted to $77,200, including $6,350 of depreciation.
Fein had taken out a four-month loan of $18,000 on May 1. Interest, due with payment of principal, accrued at the rate of 9% per year. The loan and all interest were repaid on August 31. (Note: Use whole months to compute interest payment.)
Required:
Prepare a schedule of cash payments for Fein Company for the month of August. Be sure to enter percentages as whole numbers.
Percent paid in the month of sale 20 Percent paid in the month after the sale 55 Percent paid in the second month after the sale 23Explanation / Answer
Question 1:
Answer:1
Answer:2
Roybal Inc. Schedule of Cash Receipts For July Payments on account: From May credit sales: $310000 × 23% 71300 From June credit sales: $325000 × 55% 178750 From July credit sales: $ 300000× 22% 66000 Less: July cash discount $300000 × 2 % -6000 Cash receipts 310050Related Questions
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