The controller of Harrington Company estimates sales and production for the first four months of 2016 as

Question:

The controller of Harrington Company estimates sales and production for the first four months of 2016 as follows:

Sales are 40% cash and 60% on account, and 60% the sale, 40% of credit sales are collected. It takes cost $5 per kg. All direct materials purchases are on account, and are paid as follows: 40% in the month of the purchase, 60% the following month. Ending direct materials inventory for each month is 40% of the next month's production needs. January's beginning materials inventory is 1,080 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.
Instructions
Answer the following questions:
(a) What are the total cash sales for the January-March quarter?
(b) What is the accounts receivable balance at the end of March?
(c) What is the direct materials inventory balance at the end of March?
(d) What are material purchases costs for February?
(e) What are cash payments on account for February?
(f) What is the ending balance in accounts payable for March?
(g) What is the cash balance for the period January-March?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...