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how do you find the account sales and cash sales on a schedule of cash collections? I was doing my accounting homework and I got
how do you find the account sales and cash sales on a schedule of cash collections?
Harvest Oaks Furniture, Inc. manufactures wooden dining chairs that sell for $100 each. The company is preparing its second quarter budget. The following information has been assembled. Use the information in A-C to answer Part 1. A. Estimated unit sales for the next several months: Month April May June July August Units 25,000 30,000 22,000 20,000 24,000 B. 20% of sales are for cash at the time of sale. The remaining 80% of sales are on account. These sales on account are usually collected in the following pattern: 35% 45% 15% 5% in the month of sale in the month following sale in the second month following sale uncollectible C. Sales for February totaled 32,000 units and sales for March totaled 27,000 units. Use the information the following information to answer Part 2. DO NOT USE THE NUMBERS YOU COMPUTED IN PART 1. ASSUME THE FOLLOWING INFORMATION INSTEAD. D. Assume that Harvest Oaks has correctly computed its expected cash receipts and disbursements, and correctly entered them into the cash budget in Part 2 E. Harvest Oaks beginning balance of cash on April 1 is $450,000 Harvest Oaks wants to maintain a minimum cash balance of $400,000. The company has an agreement with a local bank that allows the company to borrow money in any increment at the beginning of each month. The interest rate on these loans is 15 per month and is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. 14 693 words Part 1. Use the tables below to prepare a sales budget and schedule of cash collections for the second quarter. (Enter labels in this column) Budgeted Unit Sales April $25,000 Sales Budget May $30,000 June $22,000 Quarter $77.000 Selling Price per Unit $100 $100 $100 $100 Budgeted Sales $2,500,000 $3,000,000 $2,200,000 $7,700,000 Schedule of Cash Collections April May Quarter February account sales March account sales April cash sales April account sales May cash sales May account sales June cash sales une account sales Total cash collections I was doing my accounting homework and I got stuck on this section because I couldn't find how to do it in the book.
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