PART2 (6 points) answer will be graded (1) Asgie Gold Company has budgeted sales
ID: 2590719 • Letter: P
Question
PART2 (6 points) answer will be graded (1) Asgie Gold Company has budgeted sales edher question (C) er question () Do not answer both questions as only your finst revenue as follows for the next 4 months: February March April May $270,000 310,000 290,000 350,000 Past experience indicates that 75 occurs as follows: 60% in the month of sale 30% in t month following the sale. The other 2% is uncollectible. % of sales each month are on credit and that collection of credit sales the month following the sale, and 8% in the second Instructions: In the space at the bottom of this page prepare an month of May of 2015. expected cash receipts schedule for the (2) Blue Aggie Company budgeted the following information for 2015: May June July Budgeted purchases $220,000 $280,000 $250,000 Cost ofgoods sold is 40% ofsales. Accounts pa following month. per month. They are paid during the month of acquisition. In addition, budgeted depreciation is yable is used only for inventory acquisitions. purchases and pays for merchandise 40% in the month of acquisition and 60% in the t · Blue Compan . Selling and administrative expenses are budgeted at $50,000 for May and are expected to increase 3% · Income taxes are $34,500 for July and are paid in the month incurred. Instructions: In the space at the bottom of this page $12,000 per month. prepare a cash disbursements budget for the month of July 2015.Explanation / Answer
Answer
Cash Receipts for May
Particulars
(In $)
Feb.
-
March
18,600
(310,000*75%) * 8%
April
65,250
(290,000*75%) * 30%
May
157,500
(350,000*75%) * 60%
Total
241,350
Total cash collection in May month = $241,350
Particulars
(In $)
Feb.
-
March
18,600
(310,000*75%) * 8%
April
65,250
(290,000*75%) * 30%
May
157,500
(350,000*75%) * 60%
Total
241,350
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