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
geniusboy [140]
3 years ago
10

Sutton Pointers Corporation expects to begin operations on January 1, 2015; it will operate as a specialty sales company that se

lls laser pointers over the Internet. Sutton expects sales in January 2015 to total $300,000 and to increase 15 percent per month in February and March. All sales are on account. Sutton expects to collect 66 percent of accounts receivable in the month of sale, 23 percent in the month following the sale, and 11 percent in the second month following the sale.
Required:
a. Prepare a sales budget for the first quarter of 2015.
b. Determine the amount of sales revenue Sutton will report on the first 2015 quarterly pro forma income statement.
c. Prepare a cash receipts schedule for the first quarter of 2015. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
d. Determine the amount of accounts receivable as of March 31, 2015. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
Business
1 answer:
Neporo4naja [7]3 years ago
6 0

Answer:

a. January=  $300,000, February = $345,000 and  March = $396,750

b.  $1,041,750

c. January=  $198,000, February = $296,700 and  March = $374,205

d. $22,545

Explanation:

Sales Budget [to determine sales revenue]

January                                =  $300,000

February ($300,000 × 1.15) = $345,000

March ($300,000 × 1.15^2)  = $396,750

Revenue for the quarter      = $1,041,750

Cash Receipts Schedule [to determine receipts and receivables balance]

                                     January        February           March

Sales                            $300,000     $345,000       $396,750

Receipt - 66%              ($198,000)    ($227,700)    ($261,855)

Receipt - 23 %                     -              ($69,000)      ($79,350)

Receipt - 11 %                       -                    -               ($33,000)

Total Receipts             ($198,000)   ($296,700)     ($374,205)

Account Receivable    $102,000       $48,300         $22,545

You might be interested in
Select the correct answer from each drop-down menu. when the value of a country’s currency falls, the currency is , so one unit
anyanavicka [17]

When the value of a country’s currency falls, the currency is <u>depreciating</u><u>,</u> so one unit of that currency can buy <u>fewer</u> units of other currency.

<h3>What is effect of a currency depreciation?</h3>

When there is a depreciation of a country's currency, its  makes its export goods cheaper for foreigners and domestic residents find that foreign imports are more expensive.

Therefore, the correct dropdown includes <u>depreciating</u> & <u>fewer</u>.

Read more about currency depreciation

<em>brainly.com/question/8106383</em>

#SPJ4

3 0
2 years ago
Initially, a competitive industry that has 1,000 firms is in long-run equilibrium. Then 100 firms in the industry adopt a new te
antoniya [11.8K]

Answer:

The correct answer is: declines; higher economic; will incur losses.

Explanation:

A perfectly competitive firm has 1,000 firms that are operating in the long-run equilibrium.  

Out of these firms, 100 firms have adopted a new technology that has caused their average cost of production to decline.  

These firms will be able to produce more output at the same cost. As a result, their supply will increase, this will cause the price to decline.  

The firms with new technology that are facing a lower average cost of production will earn positive economic profits as they have lower costs.  

The firms with old technology that have higher production costs will incur economic losses as they have higher costs.

7 0
3 years ago
Decision makers and analysts look deeply into profitability ratios to identify trends in a company’s profitability. Profitabilit
ahrayia [7]

Answer:

  • If a company has a profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales.  A 10% PROFIT MARGIN MEANS THAT THE COMPANY EARNED 10 CENTS FOR EVERY DOLLAR OF REVENUE.
  • If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes.  OPERATING PROFIT = GROSS PROFIT - FIXED COSTS, NET PROFIT = OPERATING PROFIT - (INTERESTS AND TAXES). IF TAXES OR INTERESTS INCREASE, NET PROFITS DECREASE

Explanation:

there are several profitability ratios, the most important ones are:

  1. profit margin = net profit / total revenue
  2. gross profit margin = gross profit / total revenue
  3. return on equity = net income / total shareholder equity
  4. return on assets = net income / total assets

4 0
3 years ago
Suppose that at the beginning of 2019 Jamaal's basis in his S corporation stock is $0, he has a $0 debt basis associated with a
ivann1987 [24]

Answer:

$0 stock basis; $10,000 debt basis

$1,000 (original stock basis) + $4,000 ordinary income − $7,000 distribution = $0 stock basis and a $2,000 distribution in excess of stock basis generating $2,000 of capital gain. Debt basis is not reduced by distributions.

Explanation:

8 0
3 years ago
The Allowance for Bad Debts account has a credit balance of $ 5 comma 000$5,000 before the adjusting entry for bad debts expense
GaryK [48]

Answer:

62,200 allowance ending

Explanation:

allownce 5,000 credit

<u>Because the bad debt is calculate over the sales,</u> the bad debt expense is the result of that estimated, without considering the beginning balance of the allowance.

22% of net credit sales will be uncollectible:

260,000 x 22% = 57,200

<u>Now ending balance will be beginning + uncollectible for the period</u>

5,000 beginning

57,200 uncollectible for the period

62,200 allowance ending

4 0
3 years ago
Read 2 more answers
Other questions:
  • A company uses the indirect method to prepare the statement of cash flows. How will a gain from the sale of equipment be present
    11·1 answer
  • Criticism is hurtful because it makes one feel as if
    6·2 answers
  • Several years ago, Canadian Sam Holman realized there may be a need for a stronger, more durable wood baseball bat. He went thro
    15·1 answer
  • What are the four main types of Permission Sets in ePO?
    14·1 answer
  • In the purchasing decision process, the ________ are those who have the power to prevent sellers or information from reaching me
    9·1 answer
  • This question tests your knowledge of what activities are included in calculating GDP. Decide for each item whether it is part o
    11·1 answer
  • Which statement is TRUE regarding Super Display Book? Super Display Book is an automated trade execution system for:
    5·1 answer
  • If I loan you money for your business, what type of financing am I offering you? a. Equity Capital b. Equity Financing c. Annual
    10·2 answers
  • Which of the following statements is true about taxes?
    9·1 answer
  • Katie had a high monthly food bill before she decided to cook at home every day in order to reduce her expenses. She starts to s
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!