Chapter 6 and 7 Problems Please complete the following 8 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Chapter 6 Exercise 2 2. Schedule of cash collections Sugarland Company sells a single product and anticipates opening a new facility in Charlotte on May 1 of the current year.
Chapter 6 and 7 Problems Please complete the following 8 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Chapter 6 Exercise 2 2. Schedule of cash collections ?Sugarland Company sells a single product and anticipates opening a new facility in Charlotte on May 1 of the current year. Expected sales during the first three months of activity are: May, $60,000; June, $80,000; and July, $85,000. Thirty percent of all sales are for cash; the remaining 70% are on account. Credit sales have the following collection pattern: ?Collected in the month of sale 60% Collected in the month following sale 35 Uncollectible 5 Prepare a schedule of cash collections for May through July. Compute the expected balance in Accounts Receivable as of July 31.? Chapter 6 Exercise 4?4. Production and cash outlay computations ?RPR, Inc., anticipates that 120,000 units of product K will be sold during May. Each unit of product K requires four units of raw material A. Actual inventories as of May 1 and budgeted inventories as of May 31 follow. ?1 May?31 May??Product K (Units)? 55,000 ? 60,000 ??Rate Materials A (Units)? 40,000 ? 37,000 ?? Each unit of raw material A costs $8; RPR pays for all purchases in the month of acquisition. Invoices that account for 80% of the cost of materials acquired will be paid within 10 days of receipt, entitling the company to a 2% cash discount. Determine the number of units of product K to be manufactured in May. Compute the May cash outlay for purchases of raw material A. ?July ?August ?September ??Beginning cash balance ?$10,000 ?$ ? ?$ ? ??Add: Cash receipts ?50,000?63,000?71,000??Deduct: Cash payments ? 64,000? 58,000? 64,000??Cash excess (deficiency) before financing?($4,000)?$…
Attachments:
4 ACC.docx