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Marina CMI [18]
3 years ago
5

A company is formulating its plans for the coming year, including the preparation of its cash budget. Historically, the company'

s sales are 30% cash. The remaining sales are on credit with the following collection pattern: Collections on Account Percentage In the month of sale 40%
In the month following the sale 58%
Uncollectible 2%
Sales for the first 5 months of the coming year are forecast as follows:

January $3,500,000
February 3,800,000
March 3,600,000
April 4,000,000
May 4,200,000
For the month of April, the total cash receipts from sales and collections on account would be

a. $3,729,968
b. $3,781,600
c. $4,025,200
d. $4,408,000
Business
1 answer:
Alchen [17]3 years ago
3 0

Answer:

c. $4,025,200

Explanation:

The computation of the total cash receipts from sales and collections in April month is shown below:

= April sales × cash sales percentage + April sales × credit sales percentage × collection month percentage + March sales  credit sales percentage × Following month collection percentage

= $4,000,000 ×30% + $4,000,000 × 70% × 40% + $4,200,000 × 70% × 58%

= $1,200,000 + $1,120,000 + $1,705,200

= $4,025,200

Since cash sales are 30% , so the credit sales would be 70%

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nignag [31]
'Actual Tigers Company'
Total Assets
$100,000
Stockholder Equity: $30,000

$100,000 - $30,000 = $70,000

$70,000 + $30,000 = $100,000

Total Assets - Equity = $70,000 (total liabilities)
$70,000 + Equity = $100,000 (total assets)

In accounting if we minus the total assets ($100,000) with equity ($30,000) it will always give the "total liabilities" which is (70,000)

Then, adding the "total liabilities" ($70,000) with the equity ($30,000) equals $100,000 equal like as the "total assets"of $100,000

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8 0
3 years ago
Stern Corporation's management wants to maintain a minimum monthly cash balance of $8,000. At the beginning of September, the ca
krek1111 [17]

Answer:

Stern must borrow 13,530dollars at least to achieve is minimum monthly cash balance.

Explanation:

beginning cash balance:             $  12, 270

cash receipts                               $  97,200

cash disbursements              <u>      $(115,000)   </u>

cash balance before financing:  $   (5,530)

minimun balance required          $    8,000

financing requirement: 8,000 - (-5,530) = 8,000 + 5,530 = 13,530

7 0
3 years ago
An economy has $10 trillion in consumption, $2.5 trillion in investment, $3 trillion in government purchases, $1 trillion in exp
barxatty [35]

Answer:

$15 trillions

Explanation:

The computation of the GDP is shown below:

GDP = Consumption + Investment + Government purchase + Net exports

where,  

Consumption = $10 trillions

Investment = $2.5 trillions

Government purchase = $3 trillions

Net exports = Exports - imports

= $1 trillion - $1.5 trillion

= -$0.5 trillion

So, the GDP would be

= $10 trillions + $2.5 trillions + $3 trillions - $0.5 trillions

= $15 trillions

= 13.5 trillions

3 0
2 years ago
In 2017, Kerry Corp's financial statement showed accrued losses on disposal of unused plant facilities of $3,600,000. The facili
Margarita [4]

Answer:

$1,260,000  Asset

Explanation:

The amount that Kerry Corp should report is as follows:

Amount to be reported = $3,600,000 * 35% = $1,260,000  asset.

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8 0
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alexgriva [62]
First, we add up all the benefits that Gerome Houser gets from his job. That is,
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Then, we divide this amount by his annual salary and multiply the quotient by 100% to get the answer. 
                        ($12,053 / $45,623) x 100% = 26.4%
Therefore, Gerome Houser's rate of benefits is approximately 26.4%. 
5 0
3 years ago
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