Question
Romanos Fine Foods is a producer of Italian foods. The company prepares its foods from fresh ingredients and then sells the items to grocery store
Romanos Fine Foods is a producer of Italian foods. The company prepares its foods from fresh ingredients and then sells the items to grocery store chains. All the companys sales are made on credit. The budgeted sales and cash collection pattern for the third quarter of year 2 are shown below:
|
| July | August | September |
|---|---|---|---|
| Budgeted sales | $2,140,000 | $3,255,000 | $2,935,000 |
| Cash collection pattern | |||
| Month of sale | 35% | ||
| Month following month of sale | 42% | ||
| Second month following month of sale | 20% | ||
| Third month following month of sale | 3% | ||
| Budgeted sales for April | $2,620,000 | ||
| Budgeted sales for May | $2,880,000 | ||
| Budgeted sales for June | $3,425,000 |
Complete the following schedule of cash collections for Romanos Fine Foods by inserting the correct values into the spaces provided:
| Romanos Fine Foods | |||
|---|---|---|---|
| Schedule of Cash Collections | |||
| For the Quarter Ending September 30, Year 2 | |||
| July | August | September | |
| Collections from April sales | $78,600 | ||
| Collections from May sales |
| $86,400 | |
| Collections from June sales |
|
| $102,750 |
| Collections from July sales |
| 898,800 |
|
| Collections from August sales |
|
| |
| Collections from September sales |
| ||
| Total monthly collections | $2,842,100 |
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Numerical Methods In Finance
Authors: René Carmona, Pierre Del Moral, Peng Hu, Nadia Oudjane
2012th Edition
3642257453, 978-3642257452
