Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cash Payments for Selling and Administrative (S&A) Expenses Budget: Variable selling and administrative expenses are $0.50 per unit sold and fixed selling and administrative expenses

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Cash Payments for Selling and Administrative (S&A) Expenses Budget: Variable selling and administrative expenses are $0.50 per unit sold and fixed selling and administrative expenses are $45,000 per month. Fixed selling and administrative expenses include $8,000 in depreciation which does not require a cash outflow. Required: Prepare a cash payments for S&A expenses budget, showing total S&A expense by month and in total for the quarter. Check Figure: Total budgeted cash payments made for S&.A expenses for the quarter $136,000 8. Cash Receipts Budget: All sales are on account. Johnson's collection pattern is: 70 percent collected in month of sale 20 percent collected in month after sale 10 percent collected in the second month after sale Johnson is expecting to earn $150,000 is sales revenue in the month of June. The cash collection pattern noted above is consistent for all quarters. Required: Prepare a cash receipts budget (schedule of cash receipts): Check Figure: Total budgeted cash receipts for the quarter- $647,000 Cash Payments for Selling and Administrative (S&A) Expenses Budget: Variable selling and administrative expenses are $0.50 per unit sold and fixed selling and administrative expenses are $45,000 per month. Fixed selling and administrative expenses include $8,000 in depreciation which does not require a cash outflow. Required: Prepare a cash payments for S&A expenses budget, showing total S&A expense by month and in total for the quarter. Check Figure: Total budgeted cash payments made for S&.A expenses for the quarter $136,000 8. Cash Receipts Budget: All sales are on account. Johnson's collection pattern is: 70 percent collected in month of sale 20 percent collected in month after sale 10 percent collected in the second month after sale Johnson is expecting to earn $150,000 is sales revenue in the month of June. The cash collection pattern noted above is consistent for all quarters. Required: Prepare a cash receipts budget (schedule of cash receipts): Check Figure: Total budgeted cash receipts for the quarter- $647,000

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_2

Step: 3

blur-text-image_3

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

The Life Audit

Authors: Michelle Moroney

1st Edition

978-0717184736

More Books

Students also viewed these Accounting questions

Question

Prepare and properly label figures and tables for written reports.

Answered: 1 week ago