Four of Wands, LLC generated $255,000 in sales during January 2022. Of this amount, 25% was...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Four of Wands, LLC generated $255,000 in sales during January 2022. Of this amount, 25% was for cash. The remaining 75% of sales were made on account. The February 2022 sales on account were $170,000, which accounted for 80% of the total sales during the month. The company budgeted $350,000 in sales for March 2022 and expects sales in April 2022 to be 10% higher than March's sales. 20% of the total budgeted sales are for cash; the remaining budgeted sales are expected to be made on account. Sales on account carry credit terms of net 30. Historically, 70% of sales on account are collected in the month following the month of sale. 25% of sales on account are collected in the second month following the month of sale. 4% of sales on account are collected in the third month following the month of sale. The remaining 1% is deemed uncollectible. Given the above information, calculate the total expected cash receipts in April 2022. A. $324,680 B. $246,150 C. $323,150 D. $316,180 E. $322,000 Four of Wands, LLC generated $255,000 in sales during January 2022. Of this amount, 25% was for cash. The remaining 75% of sales were made on account. The February 2022 sales on account were $170,000, which accounted for 80% of the total sales during the month. The company budgeted $350,000 in sales for March 2022 and expects sales in April 2022 to be 10% higher than March's sales. 20% of the total budgeted sales are for cash; the remaining budgeted sales are expected to be made on account. Sales on account carry credit terms of net 30. Historically, 70% of sales on account are collected in the month following the month of sale. 25% of sales on account are collected in the second month following the month of sale. 4% of sales on account are collected in the third month following the month of sale. The remaining 1% is deemed uncollectible. Given the above information, calculate the total expected cash receipts in April 2022. A. $324,680 B. $246,150 C. $323,150 D. $316,180 E. $322,000
Expert Answer:
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
Posted Date:
Students also viewed these accounting questions
-
Kari-Kidd Corporation currently gives credit terms of net 30 days. It has $60 million in credit sales, and its average collection period is 45 days. To stimulate demand, the company may give credit...
-
1.) On January 1, 2014, Jack Company issues $3,744,000, 6%, 10-year bonds for cash of $3,013,464 when the market rate of interest is 9%. The bonds pay interest semi-annually on June 30 and December...
-
Question 1. This question is based on a journal article that appeared in the New England Journal of Medicine: Gawande AA et al., "Risk factors for retained instruments and sponges after surgery."...
-
In his senior year at Notre Dame, Chris Moore had been the third runner-up for the fabled Heisman Trophy. The trophy goes to the outstanding football player in America and is presented annually by...
-
Les Pulaski is the supervisor of a new division of Innovation Corporation. Her annual bonus is based on the success of new products and is computed on the number of sales that exceed each new...
-
Summarize the advantages and disadvantages of the different changeover methods.
-
Organic Co. makes a variety of products from a joint process. The joint cost per batch run is \(\$ 30,000\) and each batch produces the following products: How would you classify each product (joint,...
-
Wallowa Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value . Annual revenues...
-
Set up a financial ratio table that calculates and summarizes for Apple Inc (Aapl stock symbol) and HP Inc. (HPQ stock symbol) for both of their most recent two years, the following financial...
-
Your client, Bigco, is considering buying Littleco. Littlecos particulars are as follows: Assets: FMV=100mm; adjusted basis 40mm Liabilities: none Market Value of stock: 130mm Location: Incorporated...
-
I already know that some concerns of lack of security in TCP/IP are that TCP/IP does not support strong authentication of packets and no encryption of packets. What other weaknesses are there in the...
-
A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0.50 that consumers will love Happy Forever, and in this case, annual sales will be 1.06 million...
-
Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Actual Cost per Unit Direct...
-
Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1.5 million on March 1, $1.2 million on June 1, and $3 million on...
-
Harbor Images has collected the following cost data for various levels of activity: Month August September October November 31 Images Created 5,600 7,350 7,700 4,100 Total Cost $ 5,620 6,240 8,474...
-
Jarvis Inc. had pretax financial income of $2,000,000 and taxable income of $2,400,000. The difference is due to a temporary timing difference of warranty liabilities that have not been paid for yet....
-
"What is the structure of a C program, and how does it execute?"
-
I frequently use NY Times and CNN and am aware of Fox News but I never use it. I visit these sites, NY Times and CNN, a few times a week whenever I have to research something or see something on...
-
When a scope limitation exists, how would the standard (unmodified) report be modified to express (a) A qualified opinion and (b) A disclaimer of opinion?
-
Which of the following is not an internal audit objective designed to add value to a purchas-ing department? a. A review of the bidding process indicates that a vendor company may be operating under...
-
You have been engaged to audit the financial statements of Hardy Hardware Distributors Inc., as of December 31. In your review of the corporate nonfinancial records, you have found that Hardy...
-
Briefly describe the concept of weighted average cost of capital.
-
A company plans to accumulate 75% of its needed investment capital by issuing bonds having a capital cost percentage of 12%; the balance will be raised by issuing stock having a capital cost...
-
In what sense does the cost of capital limit a firms investment considerations?
Study smarter with the SolutionInn App