Kris VanKemp is a wholesaler of flowers, shipping them throughout the Pacific Northwest Kris expects her April 1 balances in accounts receivable and accounts payable to be $25,000 and $6,000, respectively Kris also informs you that she expects sales of $50,000, $40,000, and $46,000 during the month...

a The short method is to recognize that Kris would have collected all of her sales for March and Apr ...

Kris VanKemp is a wholesaler of flowers, shipping them throughout the Pacific Northwest. Kris expects her April

Question:

Kris VanKemp is a wholesaler of flowers, shipping them throughout the Pacific Northwest. Kris expects her April 1 balances in and to be $25,000 and $6,000, respectively.
Kris also informs you that she expects sales of $50,000, $40,000, and $46,000 during the months of March, April, and May, respectively. Kris collects 50% of her sales in cash during the month of sale and the remaining 50% in the following month.
Kris purchases all of her flowers from local growers. She pays for 80% of her purchases in the same month and the remaining 20% in the following month. Kris expects her purchases to be $30,000, $32,000, and $40,000 for March, April, and May, respectively.

Required:
a. Compute Kris’s expected balance for as of May 31.
b. Compute Kris’s expected balance for as of May 31.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...