Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Byron Wholesale Company developed the following data for the preparation of January 2022 budget: Cash balance January 1, 2022: $12,000 Total expected sales in January:

Byron Wholesale Company developed the following data for the preparation of January 2022 budget:

Cash balance January 1, 2022: $12,000

Total expected sales in January: $160,000 of which 25% is cash sales and the balance on account.

Actual credit sales for the previous months are:

December $80,000, November $60,000; and October $70,000.

Credit sales are collected as follows: 30 percent in the month of sale, 60 percent in the following month, and 10 percent in the second month following the sale.

Expected purchases for goods for sale for January 2022 are $60,000. Actual December purchases were $45,000 and for November were $30,000. 15% of the purchases are paid in the month of purchase 60% in the following month and the remainder in the second month after purchase.

January 2022 expected other expenses are Salaries $42,000, utilities $1,490, selling and administrative expenses $49,000 of which depreciation on the building is $4,000. Payments for other exenses are made on cash.

Required:

A). Calculate the anticipated cash receipts from sales in January 2022.

B). Calculate the anticipated total cash available in January 2022.

C). Calculate the January 2022 cash payments for purchases.

D). Calculate the anticipated cash balance on January 31, 2022.

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 Volume 1

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick

7th Edition

1260306747, 978-1260306743

More Books

Students also viewed these Accounting questions

Question

Seek a limited number of options or solutions.

Answered: 1 week ago

Question

What community placements are available for practica?

Answered: 1 week ago

Question

What are the skills of management ?

Answered: 1 week ago