Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1))) Alpha Company began operations on January 1. All sales are on credit. Alpha has sales budgeted as $170,000 for February. Receivables at January 31

1))) Alpha Company began operations on January 1. All sales are on credit. Alpha has sales budgeted as $170,000 for February. Receivables at January 31 were $25,000. Accounts Receivable collections are expected to be 60% in the month of sale, 30% the next month, and 10% in the next. Use this information to determine the dollar value of: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)

1. January Sales

2. January Cash Collections from Customers

3. February Expected Cash Collections from Customers

2))) Alpha Company is preparing its cash budget for the month of May.The company estimated credit sales for May at $200,000. Actual credit sales for April were $150,000. Estimated collections in May for credit sales in May are 20%.Estimated collections in May for credit sales in April are 70%.Estimated Collections in May for credit sales prior to April are $12,000.Estimated write-offs in May for uncollectible credit sales are $8,000.Estimated provision for bad debts in May for credit sales in May are $7,000.What are the estimated cash receipts from accounts receivable collections in May?

3))) Alpha Company has provided projected information as follows:

Net sales$10,000

Fixed manufacturing costs$1,000

Additionally, Alpha has experienced a variable manufacturing costs of 45% of net sales and sees not changes during the budget period. Alpha expects that there will be no changes to any inventory values. Use this information to determine Alpha's: . (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)

1. Budgeted Cost of Goods Sold

2. Budgeted Gross Profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

2nd edition

134730372, 134730370, 978-0134730370

More Books

Students also viewed these Accounting questions

Question

Keep your head straight on your shoulders

Answered: 1 week ago

Question

Be straight in the back without blowing out the chest

Answered: 1 week ago

Question

Wear as little as possible

Answered: 1 week ago