A CPA firms budgeted cash collection for the first six months of the year looks like the following: Cash Sales Credit Sales January. $75,000 $210,000 February... $85,000 $227,000 March... $63,000 $215,000 April.. $92,000 $199,000 May... $68,000 $456,000 June $71,000 $273,000 Managers expect that collection on credit will follow the following pattern: 50% in month of sale 30% in month following sale 20% in second month following sale 3. If January 1st account receivable balance was $110,000 ($80,000 from Decembers credit sales, and $30,000 of Novembers credit sales), what is the total cash collection for January? 4. What would be the CPA firms account receivable balance on May 30th? Takeya Companys 2014 sales are forecasted to be: Quarter 1st 2nd 3rd 4th Unit Sales 16,000 18,000 20,000 17,000 In order to produce one unit, the company must use two and a half pounds of raw material. Moreover, each quarters ending raw materials balance must equal 40% of the following quarters production needs. Additionally, at the end of each quarter Takeya is determined to hold finished goods inventory of 20% of the next quarters sales needs. What is the second quarter budgeted raw material purchases? he following sales data pertains to the Extron Company: October November December Budgeted sales $140,000 $160,000 $180,000 25% of sales are for cash and the collection schedule for credit sales follows this pattern: 50% during month sale 35% during the first following month 10% during the second following month 5% uncollectable Extron requires a minimum ending cash balance of $9,500. Moreover the company predicts a beginning balance of $12,000 for December. Other December data includes: Purchases paid at December...$79,500 Selling and Administrative expenses paid at December $59,500 Cash dividend paid at December $45,000 Depreciation expenses for December $17,000 7. Dell Corporation produces and sells a computer monitor model x. Dells budgeted data for March is: a. Cash sales of $1,232,000 b. March 1st cash balance of $17,500 c. March cash disbursements (not including interest) $1,245,652 d. Required minimum cash balance on the end of March is $16,000 e. 2% Interest is paid in the end of the month when the company borrows in the beginning of the month. When needed, Dell can borrow cash from Bank of America. How many dollars does Dell must borrow in March? The data bellow regards The Bag House, a store that sells bags. Budgeted sales (credit): for January, February, and March are $420,000, $310,000 and $280,000. Budgeted collections: 60% in month of sale, 30% in following month, and 10% uncollectable. Cost of goods sold: 50% of sales. Purchases of merchandize: 30% in month prior to sale, and 70% in month of sale. Payment for purchases: 80% in month of purchase and 20% in following month. Selling and administrative costs: $32,500 paid in cash monthly. Depreciation of office equipment: $21,500 monthly. 8. What is Februarys net income (loss) before interest and taxes? 9. What is the total cash disbursement for purchases of merchandize in February? 10. What is the change in the cash account for February? The following data pertains to the budget reports of Jawbone, a company specializing in wearable technology. Jan Feb March April May June Sales $305,000 $330,000 $290,000 $365,000 $315,000 $285,000 Purchases $150,000 $181,000 $270,000 $205,000 $185,000 $140,000 Additional information: Purchases are paid 50% in month of purchase and 50% in the following month COGS are 60% of sales Sales collections are collected 70% in month of sale and 30% in the following month Selling and Administrative costs are 15% of sales each month (paid in cash monthly) Interest payments are paid in February and July and the monthly interest is $1000 Jawbone is planning to declare cash dividends in April to be paid in May: $41,000 The balance in Retained Earnings is expected to be on March 31: $18,500 The cash balance as of April 1 is expected to be $28,000 11. What is the amount of cash Jawbone is collecting in April? What are Jawbones cash disbursements for April? 13. What is the expected balance in Retained Earnings in the end of April?