I only need help with creating an "Expected CASH collection for JULY only" and if you can, also help with CASH budget as shown in my pic but I forgot how to do it... I posted 2 different pictures because it tells me to go back for reference. 7-18A I believe is the original problem. I will post a pic of my work that's right but I forgot how to do it because we did it in class. Thabks! I have a test in 4 hours!!!!
PROBLEM 7-IBA Cash Budget with Supporting Schedules Changing Assumptions [LO2, LO4.Loe Refer to the data for Janus Products, Inc., in Problem 7-17. The company's pres is interested in know- ing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory assumptions asf ollows Sales continue to be 20% for cash and 80% on croit However, credit sales from July, August, and September are collected over a three-month period with 25% collected in the month of sale. 60% collecte d in the month following sale, and 15% in the second month following sale. Credit sales from May and June are collected during the third Problem 7-17 1. CHECK FIGURE (I) August collections: $52,960: (3) July ending cash balance: $13,710 quarter using the collection percentages specified in 2. The company maintains its ending inventory levels for July, August, and September at 25% of the cost of merchandise to be sold in the following month. The merchandise inventory at June 30 remains $18,000 and accounts payable for inventory purchases at June 30 remains $11,700. remains the same. All other information from Problem 7-17 that is not referred to above r Required: 1. Using the president's new assumptions in (1) above, prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. Using the president's new assumptions in (2) above, a. A merchandise purchases budget for July, August, and September. b. 2. prepare the following for merchandise inventory: A schedule of expected cash disbursements for merchandise purchases for July, August, and 3. Using the president's new assumptions, prepare a cash budget for July,. August, September, and for the memorandum for the president explaining how his revised assumptions affect the cash September and for the quarter in total. quarter in total. budget. PROBLEM 7-IBA Cash Budget with Supporting Schedules Changing Assumptions [LO2, LO4.Loe Refer to the data for Janus Products, Inc., in Problem 7-17. The company's pres is interested in know- ing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory assumptions asf ollows Sales continue to be 20% for cash and 80% on croit However, credit sales from July, August, and September are collected over a three-month period with 25% collected in the month of sale. 60% collecte d in the month following sale, and 15% in the second month following sale. Credit sales from May and June are collected during the third Problem 7-17 1. CHECK FIGURE (I) August collections: $52,960: (3) July ending cash balance: $13,710 quarter using the collection percentages specified in 2. The company maintains its ending inventory levels for July, August, and September at 25% of the cost of merchandise to be sold in the following month. The merchandise inventory at June 30 remains $18,000 and accounts payable for inventory purchases at June 30 remains $11,700. remains the same. All other information from Problem 7-17 that is not referred to above r Required: 1. Using the president's new assumptions in (1) above, prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. Using the president's new assumptions in (2) above, a. A merchandise purchases budget for July, August, and September. b. 2. prepare the following for merchandise inventory: A schedule of expected cash disbursements for merchandise purchases for July, August, and 3. Using the president's new assumptions, prepare a cash budget for July,. August, September, and for the memorandum for the president explaining how his revised assumptions affect the cash September and for the quarter in total. quarter in total. budget
