Return to qu estio n Problem 9 12 Schedules of Expected Cash Collections and Disbursements L02 u have been asked to prepare a December cash budget for Ashton Company a distributor of exercise equipment The following information is available about the company's operations The cash balance on December'l is $50 600 Actual sales for October and November and expected sales for December are shown below Sales on account are collected over a three month period as follows 20 collected in the month of sale 60 collected in the month following sale, and 18 collected in the second month following sale The remaining 2 is uncollectible 57 October November December Cash sales 3 T4, 00 $ 35,000 $ 35,000 Sales on account 515,000 533,000 6 2,000 c Purchases of inventory will total $317,000 for December Thirty percent of a month's inventory purchases are paid during the month of purchase The accounts payable remaining from November's inventory purchases total $190,000 all of which will be paid in December Selling and administrative expenses are budgeted at $526,000 for December Oftl'lis amount $58 60 ) is for depreciation A new web server for the Marketing Department costing $78,000 will be purchased for cash during December, and dividends totalling $15,500 will be paid during the month f The company maintains a minimum cash balance of $20,000 An open line of credit is available from the company's bank to bolster the cash position as needed gun Required 1 Prepare a schedule of expected cash collections for December Answer is complete and correct Schedule of Expected Cash Collections December cash sales $ 85,000 Collections on account October sales 92,700 November sales 319,800 December sales 134,400 Total cash collections 631,9002 Prepare a schedule of expected cash disbursements during December for merchandise purchases X Answer is complete but not entirely correct Schedule of Expected Cash Disbursements Payments to suppliers November purchases $ 95,100 X December purchases 190,000 X Total cash payments $ 285,100

Question

Return to qu estio n Problem 9 12 Schedules of Expected Cash Collections and Disbursements  L02   u have been asked to prepare a December cash budget for Ashton Company  a distributor of exercise equipment  The following information is available about the company's operations  The cash balance on December'l is $50 600  Actual sales for October and November and expected sales for December are shown below  Sales on account are collected over a three month period as follows  20  collected in the month of sale  60  collected in the month following sale, and 18  collected in the second month following sale  The remaining 2  is uncollectible  57    October November December Cash sales 3 T4, 00 $ 35,000 $ 35,000 Sales on account  515,000 533,000 6 2,000 c  Purchases of inventory will total $317,000 for December  Thirty percent of a month's inventory purchases are paid during the month of purchase  The accounts payable remaining from November's inventory purchases total $190,000  all of which will be paid in December    Selling and administrative expenses are budgeted at $526,000 for December  Oftl'lis amount  $58 60 ) is for depreciation  A new web server for the Marketing Department costing $78,000 will be purchased for cash during December, and dividends totalling $15,500 will be paid during the month  f  The company maintains a minimum cash balance of $20,000  An open line of credit is available from the company's bank to bolster the cash position as needed  gun  Required  1  Prepare a schedule of expected cash collections for December  Answer is complete and correct  Schedule of Expected Cash Collections December cash sales $ 85,000 Collections on account  October sales 92,700 November sales 319,800 December sales 134,400 Total cash collections 631,9002  Prepare a schedule of expected cash disbursements during December for merchandise purchases  X Answer is complete but not entirely correct  Schedule of Expected Cash Disbursements Payments to suppliers  November purchases $ 95,100 X December purchases 190,000 X Total cash payments $ 285,100

Accepted Answer

The Answer is in the image, click to view ...

Question

Return to qu estio n Problem 9-12 Schedules of Expected Cash Collections and Disbursements [L02] %u have been asked to prepare a December cash budget

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Excel Applications For Accounting Principles

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question