Manal Pvt.Ltd. budgeted incomestatement for 1st quarter 2020 Description JANUARY FEBRUARY MARCH Sales 285,000 323,000 221,000 Purchases 129,000 168,000 95,000 Wages 35,000 37,000 30,000 Supplies
Manal Pvt.Ltd. budgeted incomestatement for 1st quarter 2020
Description
JANUARY
FEBRUARY
MARCH
Sales
285,000
323,000
221,000
Purchases
129,000
168,000
95,000
Wages
35,000
37,000
30,000
Supplies
26,000
23,000
21,500
Utilities
6,500
8,700
7,200
Rent
15,000
12,800
13,600
Insurance
12,000
12,000
12,000
Advertising
24,500
28,500
18,000
Depreciation
20,000
20,000
20,000
Net Profit
17,000
13,000
3,700
Manal Receivable Trend:
30% of Sales are collected in the month of sale, 30% of Sales are collected after the month of sale. 40% of Sales are collected two months after the sale is made
Manal Payable Trend:
10% of Purchases are paid for in the month of purchase, 35% of Purchases are paid after the month of purchase, and 55% of Purchases are paid two months after the purchase is made
Additional Information:
Rent and Insurance expense were prepaid at the end of 2020
All other expenses are paid for in the month they were incurred
November Sales = 195,000November Purchases = 100,000
December Sales = 250,000December Purchases = 165,000
Please see attached Budgeted Income Statement for 1st Quarter 2020
Required:
Calculate to show Jan-Mar 2020 cash collection from sale, cash payment of purchases and total expenses each month separately on the basis of above given data.
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Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
