Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Gary's supervisor is working on the company/s budgeted balance sheet for quarter 2 , and he delegates budzeting for the ending ARR balance to Gary.
Gary's supervisor is working on the company/s budgeted balance sheet for quarter 2 , and he delegates budzeting for the ending ARR balance to Gary. He gets right to work, realizing that he can't determine the June 30 AR balance without a schedule of cash receipts. and all of that hinges on the sales forecast. He gathers information about the company's collection policies and trends, along with relevant information from the sales department, as follows. - Sales volume is expected as follows: April, 565 units, May, 870 units; June, 690 units; and July, 890 units - Average selling price is expected to be $60 per unit. - Historically, 25% of each month's sales are cash sales; all remaining sales are on credit. - 50% of each monthis sales are credit card/debit card sales, subject to a 20 imerchant fee. All appropriate receipts will be deposited into the company's account in the month of sale - 25% of each monthis sales ace trade credit sales. 30% of trade credit customers pay their balance in the month of the sale, and 65. pay in full the month following the sale. 5 of trade credit sales go uncollected - The A/r balance on March 31 was 512.000, reflecting the remaining collectible amount frem March credit sales. 2 detimat ducht ex 15.25
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started