Answer:
National Bromide
The expected cash collections in months 3 and 4 are:
Month 3 = $122 ,000
Month 4 = $104,000
Explanation:
a) Data and Calculations:
(figures in thousands of dollars):
Months 1 2 3 4
Cash sales 16 25 19 15
Sales on credit 105 125 95 75
Collections of sales on credit:
60% current month 63 75 57 45
20% next month 21 25 19
20% two months 21 25
Cash sales 16 25 19 15
Total collections 79 121 122 104
b) The credit sales are not collected in full until after two months or 60 days. After classifying the cash collections on percentage basis, the cash sales for each month are added to ensure that the correct cash collections for the month are obtained.
Answer:
$35,100
Explanation:
Shelley Corporation's
Total variable manufacturing overhead cost ($1.70 per unit × 5,000 units) $ 8,500
Total fixed manufacturing overhead cost ($3.80 per unit × 7,000 units*) 26,600
Total manufacturing overhead cost $35,100
Therefore the total amount of manufacturing overhead cost is closest to: $35,100
Answer:
$6150.
Explanation:
Given:
Tomko Company purchased machinery with a list price of $96,000.
10% discount by the manufacturer.
They paid $600 for shipping and sales tax of $4,500.
Tomko estimates that the machinery will have a useful life of 10 years and a residual value of $30,000.
If Tomko uses straight-line depreciation, annual depreciation will be ?
<u>Solution:</u>
List price of machinery = $96,000
Discount amount = 10% of 96,000
Shipping cost = $600
Sales tax = $4,500
Actual cost of machinery = List price - Discount amount + Shipping cost + Sales tax
Actual cost of machinery = $96000 - $9600 + $600 + $4500
= $91,500
Residual value = $30,000
Useful life = 10 years
As we know:
Thus, annual depreciation of machinery of Tomko Company will be $6150.
Answer:
Average collection period
Explanation:
The average collection period represents the typical number of days between the date a credit sale is formed and the date the purchaser pays for that sale.
The average collection period is the amount of time it takes for a business to receive payments owed by its clients.
Companies calculate the typical collection period to make sure they have enough cash available to satisfy their financial obligations.
The average collection period is calculated by dividing the typical balance of account receivables by total net credit sales for the amount and multiplying the quotient by the amount of days within the period.
