Schedule of Cash Payments Excel Leaming Systems Inc. was organized on September 30, 2016. Projected selling and administrative expenses for each of the first three months of operations are as follows: October $170,900 November 157,200 December 143,100 Depreciation, insurance, and property taxes represent $36,000 of the estimated monthly expenses. The annual insurance premium was paid on September 30, and property taxes for the year will be paid in June. The company expects that 65% of the remainder of the expenses will be paid in the month in which they are incurred, with the balance to be paid in the following month. Prepare a schedule indicating cash payments for selling and administrative expenses for October, November, and December. Excel Learning Systems Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending December 31, 2016 October November December October expenses Paid in October Paid in November November expenses: Paid in November Paid in December December expenses: Paid in December a Total cash payments Schedule of Cash Collections of Accounts Receivable Office World Inc. has "cash and carry customers and credit customers. Office World estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months of 2016 are as follows: August $112.000 September 140,000 October 205,000 o The Accounts Receivable balance on July 31, 2016, was $75,000 Prepare a schedule of cash collections from sales for August, September, and October. Round all calculations to the nearest whole dollar. Office World Inc. Schedule of Collections from Sales For the Three Months Ending October 31, 2016 August September October Receipts from cash sales: Cash sales July sales on account: Collected in August August sales on account: Collected in August Collected in September September sales on account Collected in September Collected in October October sales on account Collected in October Total cash receipts JIO I I |