1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ankoles [38]
3 years ago
7

Adams Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sel

ls laser pointers over the Internet. Adams expects sales in January 2019 to total $340,000 and to increase 15 percent per month in February and March. All sales are on account. Adams expects to collect 66 percent of accounts receivable in the month of sale, 22 percent in the month following the sale, and 12 percent in the second month following the sale.
Required:
A. Prepare a sales budget for the first quarter of 2019.
B. Determine the amount of sales revenue Adams will report on the first 2019 quarterly pro forma income statement.
C. Prepare a cash receipts schedule for the first quarter of 2019.
D. Determine the amount of accounts receivable as of March 31, 2019.
Business
1 answer:
Andrej [43]3 years ago
7 0

Answer:

a) The Sales Budget for the 2019 first quarter will be:

January - $340,000

February - $391,000 (340,000 x 1.15)

March - $449,650 (391,000 x 1.15)

b) The amount of sales revenue to be reported for the first 2019 quarter is $1,180,650, i.e. the total of sales from January to March.  This equals $1,180,650 (340,000 + 391,000 + 449,650).

c) The cash receipts schedule for the first quarter of 2019 will look like this:

January - 66% of $340,000 = $224,400.

February - 66% of $391,000 + 22% of $340,000 = $332,860.

March - 66% of $449,650 + 22% of $391,000 + 12% of $340,000 = $373,589.

Total cash receipts for the first quarter is $930,849 (224,400 + 332,860 + 373,589)

d) The amount of accounts receivable as of March 31, 2019 is $249,801 (the difference between total quarter sales of $1,180,650 and total quarter cash receipts of $930,849)

Explanation:

A Sales Budget is prepared to determine the sales outlook given certain units of sales at given price units based on prevailing business environment.  It is an educated guess, like all estimates, to value the outcome of a company's sales efforts in the future.

The sales budget determines the revenue to be anticipated and reported.  It is also the basis for cash receipts and the balance of the accounts receivable.

You might be interested in
The College of Business is deciding between two photocopier options. The first is to lease a high-end machine for $8,400/year. T
Sedaia [141]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The first is to lease a high-end machine for $8,400/year.The only additional costs are the cost of paper, which is $0.01/sheet.

The other option is to purchase a machine. The cost is $5,000 and the per sheet cost increases (toner, maintenance) to $0.02.

First, we need to determine the total cost formula for each option:

Option 1:

Total cost= 8,400 + 0.01x

Option 2:

Total cost= 5,000 + 0.02x

A) Volume= 270,000

Option 1:

Total cost= 8,400 + 0.01*270,000= $11,100

Option 2:

Total cost= 5,000 + 0.02*270,000= $10,400

Option 2 is the cheapest.

B) Volume= 240,000

Option 1:

Total cost= 8,400 + 0.01*240,000= $10,800

Option 2:

Total cost= 5,000 + 0.02*240,000= $9,800

Option 2 is the cheapest.

C) To determine the indifference point, we need to isolate X:

8,400 + 0.01x= 5,000 + 0.02x

3,400= 0.01x

340,000=x

The indifference point is 340,000 paper sheets.

5 0
3 years ago
The united states economy spends about as many months in recession as it spends in expansion. True or False
kobusy [5.1K]

Answer:

I think the answer will be true

8 0
2 years ago
Please explain to me CPJ and CRJ immediately I really need in depth explanation​
alukav5142 [94]

Answer:

CRJ means cash receipt journal. ... In higher classes, this journal is not made, it is included in the debit side of cash book. Meaning of CPJ. CPJ means cash payment journal.

8 0
3 years ago
A callable bond pays annual interest of $60, has a par value of $1,000, matures in 20 years but is callable in 10 years at a pri
Elena-2011 [213]
A. 6%

Calculator entries are N = 10, PV = -1,055.84, PMT = 60, FV = 1,100, CPT I/Y 6
5 0
3 years ago
Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
VladimirAG [237]

Answer:

The correct answer is option (D).

Explanation:

According to the scenario, computation of the given data are as follows:

Variable cost = Direct material + Direct labor + Variable manufacturing overhead + Variable selling cost per unit

Variable cost of product A =    $17.30 + $19.30 + $6.10 + $3.05 = $45.75

Variable cost of product B =   $21.20 + $22.70 + $7.30 + $3.75 = $54.95

Variable cost of product C =   $14.20 + $17.10 + $9.80 + $4.50 = $45.60

Variable cost of product D =   $16.90 + $11.10 + $6.80 + $5.20 = $40

Contribution per unit (CPU) = selling price per unit – variable cost  

Product A CPU = $87.20 - $45.75 = $41.45

Product B CPU = $79.60 - $54.95 = $24.65

Product C CPU = $76.40 - $45.60 = $30.8

Product D CPU = $71.10 - $40 = $31.10

Contribution per grinding minutes (CPGM)  = CPU ÷ contribution per grinding minutes

CPGM of Product A = $41.45 ÷ 2.30 = $18.02

CPGM of Product B = $24.65 ÷ 1.35 = $18.26

CPGM of Product C = $30.8 ÷ 0.90 = $34.22

CPGM of Product D = $31.10 ÷ 1.20 = $25.92

According to the analysis, Product C makes the most profitable use of grinding machine. Because it’s give the highest contribution per grinding minutes.

7 0
2 years ago
Other questions:
  • Curling is a sport where teams slide stones on ice and attempt to hit targets. Teams consist of four players. Suppose that Bob,
    6·1 answer
  • The level of service exports worldwide increased more than _______ between 1980 and 2010
    14·1 answer
  • One of the main tools used by economists to measure the actual distribution of income is
    7·1 answer
  • Apple, known for creativity and innovation, keeps its new innovations consistent with previous product lines to maintain long-te
    11·1 answer
  • 7. The stock of Top of the Muffin currently pays a dividend of $11.40. The dividend is expected to grow by 20% per year for the
    6·1 answer
  • Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevan
    14·1 answer
  • Plano Co. 12/31/2021
    15·1 answer
  • The difference between your sales and your cost of goods sold is known as your what
    11·1 answer
  • What is functional structure in organization?​
    9·1 answer
  • Are Investments guaranteed to generate profit
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!