Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The amber magick shoppe has forecasted sales revenues and purchases for the last five months of 20X5 to be as follows: 60% of sales are

image text in transcribed
The amber magick shoppe has forecasted sales revenues and purchases for the last five months of 20X5 to be as follows:
60% of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sale and the remainder are collected two months after that the sale. Purchases are paid 30 days after they are incurred. The firm has a cash balance of $5000 on hand as of October 31 but it's minimum required cash balance is $4000
image text in transcribed
Sixty percent of sales weon credit. On the basis of past experience, Son of the account receivable are collected the month after the sale and the remainder we collected 2 meet her the sale. Purchases are al 10 days after they are incurred. The firm has a balance of 55,000 on hands of October 31, but its minimum required cash balance is $4,000 A) Prepare a chedule of cash recipes for October November, and December B) Prepare a cash budget for the same period Ch Credit August September October November December 58,300 S6000 $10,000 $12,000 $10,400 13.00 9.000 15.000 18,000 PROBLEMA The Amber Magiek Sheppe has continerende for et of 2023 be follows Purch October . Sixty percent of sales on credit. On the basis of past experience, 50% of the com receivable are collected the month after the sale and the remainder we collected as the the sale Purchases are paid 30 days after they are incurred. The firm has sublic of $5,000 on hands of October 31, but its minimum quidcah cei 54.000 A) Prepare a schedule of cash recipes for October, November December B) Prepare a cash budget for the same period Cash Credit August September October November December 58,800 $6000 $10.000 $12.000 $10,400 13,200 9,000 15,000 18,000 15,600 PROBLEM 2 The Amber Magick Shoppe has forecast its sales revenues and purchases for the last last month of 20x5 to be as follows: Purchase $17,000 19,500 August September October November December Sales $22,000 15,000 25,000 30,000 26.000 20,000 24.000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

11th Edition

978-0132568968, 9780132568968

More Books

Students also viewed these Accounting questions