Question
The Russ Fogler Company, a small manufacturer of cordless telephones, began operations on January 1. Its credit sales for the first 6 months of operations
The Russ Fogler Company, a small manufacturer of cordless telephones, began operations on January 1. Its credit sales for the first 6 months of operations were as follows:
| Month | Credit Sales |
| January | $ 44,000 |
| February | 94,000 |
| March | 114,000 |
| April | 99,000 |
| May | 134,000 |
| June | 154,000 |
Throughout this entire period, the firms credit customers maintained a constant payments pattern: 30% paid in the month of sale, 35% paid in the first month following the sale, and 35% paid in the second month following the sale.
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What was Foglers receivables balance at the end of March and at the end of June? Do not round intermediate calculations. Round your answers to the nearest dollar.
March receivables: $
June receivables: $
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Assume 90 days per calendar quarter. What were the average daily sales (ADS) and days sales outstanding (DSO) for the first quarter and for the second quarter? Do not round intermediate calculations. Round ADS answers to the nearest dollar and DSO answers to one decimal place.
1st Quarter ADS: $
1st Quarter DSO: days
2nd Quarter ADS: $
2nd Quarter DSO: days
What were the cumulative ADS and DSO for the first half-year? Do not round intermediate calculations. Round ADS answer to the nearest dollar and DSO answer to one decimal place.
Cumulative Quarter ADS: $
Cumulative Quarter DSO: days
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Construct an aging schedule as of June 30. Use account ages of 030, 3160, and 6190 days. Do not round intermediate calculations. Round your answers for monetary values to the nearest dollar and for percentage values to the nearest whole number. If no entry is required, enter "0".
Age of Accounts (days) Dollar Value Percent of Total 0 - 30 $ % 31 - 60 61 - 90 $ % -
Construct the uncollected balances schedule for the second quarter as of June 30. Do not round intermediate calculations. Round your answers for monetary values to the nearest dollar and for percentage values to the nearest whole number. If no entry is required, enter "0".
Quarter 2 Sales Receivables Receivables/Sales April $ $ % May June $ %
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McGraw-Hill Education SAT 2017
Authors: Christopher Black, Mark Anestis
1st Edition
1259641651, 978-1259641657
