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cash receipts from customers for January and February 2018, Assume cash receipts are 80% in the month of the sale and 20% the month following
cash receipts from customers for January and February 2018, Assume cash receipts are 80% in the month of the sale and 20% the month following the sale. Requirement 1. Prepare the schedule Thumbtack Company Budgeted Cash Receipts from Customers Two Months Ended February 28, 2018 January February Current month sales, 80% Prior month sales, 20% Total cash receipts cash payments for purchases for January and February 2018. Assume purchases are paid 60% in the month of purchase and 40 % in the month following the purchase. Requirement 2. Prepare the schedule Thumbtack Company Budgeted Cash Payments for Purchases Two Months Ended February 28, 2018 January February 40% of last month's purchases 60% of current month's purchases Total cash payments for purchases Requirement 3. Prepare the schedule of cash payments for salling and administrative expenses for January and February 2018. Assume 40 % of the accrual for Salaries and Commissions Payable is for commissions and 60 % is for salarias. The Dacember 31 balanoe will be paid in January, Salaries and commissions number.) paid 60 % in the month incumred and 40 % in the following month. Rent and income x expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. (Round your answers to the nearest whole Thumbtack Company Budgeted Cash Payments for Selling and Administrative Expenses Two Months Ended February 28, 2018 January February Variable expenses: 40% af last month's Commission Expense 60% of current month's Commission Expense Total paymants for variable expenses Fixed expenses Salaries Expense : month's Salari se Rent expense .. Tolal payments for fixed expenses Total payments for 5 and A expenses Requirement 4. Prepare the cash budget for January and February 2018. Assume no financing took place. Thumbtack Company Cash Budget Two Months Ended February 28, 2018 January February Beginning cash balance Cash receipts from customers Cash available Cash payments: Purchases of merchandise inventory Selling and administrative expenses Payments for income taxes Total cash payments Ending cash balance December 31, 2017, account balances: Cash $ 35,000 Accounts Receivable 16,000 Merchandise Inventory 16,000 Accounts Payable 16,000 Salaries and Commissions Payable 2,500 February January Budgeted amounts for 2018: $ Sales, all on account 82,000 $ 82,100 Purchases, all on account 41,000 41,100 Commissions Expense 4,100 4,105 Salaries Expense 3,000 3,000 Rent Expense 2,000 2,000 Depreciation Expense 700 700 Insurance Expense 400 400 Income Tax Expense 1,900 1,900 December 31, 2017, account balances: Cash 35,000 Accounts Receivable 16,000 Merchandise Inventory 16,000 Accounts Payable 16,000 2,500 Salaries and Commissions Payable January February Budgeted amounts for 2018: $ 82,000 $ Sales, all on account 82,100 Purchases, all on account 41,000 41,100 Commissions Expense 4,100 4,105 Salaries Expense 3,000 3,000 Rent Expense 2,000 2,000 700 700 Depreciation Expense Insurance Expense 400 400 Income Tax Expense 1,900 1,900 Print Done
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