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slava [35]
3 years ago
9

Baltimore Baking is preparing its cash budget and expects to have sales of $30,000 in January, $35,000 in February, and $35,000

in March. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March?
Business
1 answer:
Tcecarenko [31]3 years ago
6 0

Answer:

The correct answer is $33,000.

Explanation:

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

Jan sales = $30,000

So, Amount collected in March of Jan. = 40% x $30,000 = $12,000

Feb sales = $35,000

So, Amount collected in March of Feb. = 40% x $35,000 = $14,000

Mar. sales = $35,000

So, March cash sales = 20% x $35,000 = $7,000

So, we can calculate the total cash receipts in march by using following formula:

Total cash receipts in march = Amount collected in March of Jan + Amount collected in March of Feb + March cash sales

= $12,000 + $14,000+ $7,000

= $33,000

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Chisholm Associates uses the indirect method to prepare the operating activities section of the statement of cash flows. The fol
Kobotan [32]

Answer:

$58100

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

An increase in an asset other than cash is an outflow of cash while an increase in liabilities is an inflow of cash. A decrease in an asset other than cash is an inflow of cash while an decrease in liabilities is an outflow of cash.

Change in

Accounts receivable = $ 42,550 - $ 32,100=

 = $10450   (Asset)

Prepaid insurance = 3,550 - 6,700

= -$3150  (Asset)

Accounts payable = 28,350 - 26,100  

= $2250  (liability)

Unearned revenue = 6,350 - 8,500

= -$2150  (liability)

The net cash flows from operating activities

= $65,500 - $10450  + $3150  - $2250  + $2150

= $58100

7 0
3 years ago
Type the correct answer in the box. Spell all words correctly. Which view in a presentation program displays your slides in full
Mariulka [41]
<h3><u>Answer:</u></h3>

The view in a presentation program displays your slides in full-screen mode is Slide Show view

<h3><u>Explanation:</u></h3>

Practice the Slide Show view to present your presentation to your viewers. Slide Show view engages the entire computer screen, precisely the form your display will view on a big screen when your viewers perceive it. One can guide to the SlideShow view from the taskbar at the base of the sliding window.

When in Slide Show view in PowerPoint, click the screen with your mouse to progress within the slides in your presentation. Alternatively, touch the “Space” bar on your keyboard to progress into the slide show.

8 0
3 years ago
Oriole Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $65
labwork [276]

Answer:

Explanation:

The journal entries are shown below:

Using net method:

1. Notes receivable A/c Dr $650,000        ($659,900 - $9,900)

      To Sales revenue A/c $650,000

(Being the sale is recorded)

2. Cost of goods sold A/c Dr  $460,000

        To Inventory A/c $460,000

(Being cost of goods sold is recorded)

3. Cash A/c Dr $659,900

       To Notes receivable  $650,000

       To Discount forfeited $9,900

(Being received payment is recorded)

Using gross method:

1. Notes receivable A/c Dr $650,000        ($659,900 - $9,900)

      To Sales revenue A/c $650,000

(Being the sale is recorded)

2. Cost of goods sold A/c Dr  $460,000

        To Inventory A/c $460,000

(Being cost of goods sold is recorded)

3. Cash A/c Dr $659,900

       To Notes receivable  $659,900

(Being received payment is recorded)

6 0
3 years ago
The computer now allows the instantaneous transfer of billions of dollars from one country to another. one of the concerns of go
shtirl [24]
It can cause an influx in currency or extreme inflation depending on where it goes
6 0
3 years ago
Investment in depreciable equipment$560,000 Annual net cash flows $82,000 Life of the equipment 16years Salvage value$0 Discount
katrin [286]

Answer:

The correct option is the last one,6.8 years

Explanation:

The payback period is the length of time it takes for an investor to realize the initial investment in a project,in simple terms, it is the time horizon wherein the project pays back the capital investment locked in it.

After the payback period,the project begins with return on investment phase,a phase where cash flows received are excess over and above the initial capital outlay.

Payback=initial investment/annual cash inflow

initial investment is $560,000

annual net cash flow is $82,000

payback period=$560,000/$82,000=6.8 years

4 0
3 years ago
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