Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help plz I tried to work this. 3) 3) The following information was available from ABC Company's nancial records. Other Year 2004 Sales Purchases Ex

Help plz I tried to work this.

image text in transcribed
3) 3) The following information was available from ABC Company's nancial records. Other Year 2004 Sales Purchases Ex nses Apnl $ 86,400 $ 50,400 $ 18,000 May ?9,200 57,600 15,560 June ?2,000 43,200 17,040 July 93,600 64,800 18,950 August ?9,200 ?2,000 1 7,280 Collections from customers are normally as follows: Month of sale 70% Month following sale 20% Seoond month following sale 9% The balance is expected to be uncollectibie. The company takers full advantage of discount allowed on purchases paid for by the tenth of the following month. Discount allowed 2% Other expenses are paid for during the month of expenses. The company's cash balance on August 1 was $ 26,400 Required: Compute the estimated total cash collections during August. (2 Marks) Compute the estimated total cash disbursement during August. (2 Marks) Compute the cash balance on August 31. (1 Mark) Information pertaining to ABC Company's sales budget is as follows: W Unit sales 1,600 2,000 2,300 Unit sale price $ 10.00 Credit card sales 50% Cash sales 40% Fees paid to credit card companies 3% Cost of goods sold 40% of net sales Note: Net sales is gross sales less fees paid to credit card companies. Required: Compute the budgeted sales revenue, cost of goods said and (-1- Marks) gross margin for the month of November

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

Forensic And Investigative Accounting

Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton

10th Edition

0808056301, 9780808056300

More Books

Students also viewed these Accounting questions

Question

The quality of the proposed ideas

Answered: 1 week ago

Question

The number of new ideas that emerge

Answered: 1 week ago