Do not give image format Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare a cash budget, by month and in total, for the three-month period. Assume the $79,000 loan is made on April 1 and repaidwith interest on June 30.Note: Cash deficiency, repayments and interest should be indicated by a minus sign.Beginning cash balanceAdd receipts:Collections from customersTotal cash availableLess cash disbursements:Merchandise purchasesPayrollLease paymentsAdvertisingEquipment purchasesTotal cash disbursementsExcess (deficiency) of cash available over disbursementsFinancing:BorrowingsRepaymentsInterestPrime ProductsCash BudgetAprilTotal financingEnding cash balance< Required 1MayRequired 2 >JuneQuarter Prime Products hopes to borrow $79,000 on April 1 and repay it plus interest of $1,140 on June 30. The following data are available forthe months April through June, during which the loan will be used:a. On April 1, the start of the loan period, the cash balance will be $16,500. Accounts receivable on April 1 will total $190,400, of which$163,200 will be collected during April and $21,760 will be collected during May. The remainder will be uncollectible.b. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in thesecond month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three-month period follow:Sales (all on account)Merchandise purchasesPayrollLease paymentsAdvertisingEquipment purchasesDepreciationApril$ 312,000$ 204,000$ 24,000$ 24,800$ 79,200$ 17, 200Required 1 Required 2c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases duringMarch, which will be paid in April, total $160,000.May$ 428,000$ 162,000$ 24,000$ 24,800$ 79,200$ 17,200Required:1. Calculate the expected cash collections for April, May, and June, and for the three months in total.2. Prepare a cash budget, by month and in total, for the three-month period. Assume the $79,000 loan is made on April 1 and repaidwith interest on June 30.Total cash collectionsComplete this question by entering your answers in the tabs below.June$ 319,000$ 178,500$ 18,900$ 24,800$74,480$ 78,000$ 17,200Calculate the expected cash collections for April, May, and June, and for the three months in total.Schedule of Expected Cash CollectionsAprilMay< Required 1JuneQuarterRequired 2 >

Cash Budget : The cash budget is an estimate of cash receipts and their payment is composed of four…

Required 1 Required 2 Prepare a cash budget, by month and in total, for the three-month period. Assume the $79,000 loan is made on April 1 and repaid with interest on June 30. Note: Cash deficiency, repayments and interest should be indicated by a minus sign. Beginning cash balance Add receipts: Collections from customers Total cash available Less cash disbursements: Merchandise purchases Payroll Lease payments Advertising Equipment purchases Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Prime Products Cash Budget April Total financing Ending cash balance < Required 1 May Required 2 > June Quarter

Required 1 Required 2 Prepare a cash budget, by month and in total, for the three-month period. Assume the $79,000 loan is made on April 1 and repaid with interest on June 30. Note: Cash deficiency, repayments and interest should be indicated by a minus sign. Beginning cash balance Add receipts: Collections from customers Total cash available Less cash disbursements: Merchandise purchases Payroll Lease payments Advertising Equipment purchases Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Prime Products Cash Budget April Total financing Ending cash balance < Required 1 May Required 2 > June Quarter

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

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Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
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Prime Products hopes to borrow $73,000 on April 1 and repay it plus interest of $1,080 on June 30. The following data are available for the months April through June, during which the loan will be used: On April 1, the start of the loan period, the cash balance will be $41,800. Accounts receivable on April 1 will total $182,000, of which $156,000 will be collected during April and $20,800 will be collected during May. The remainder will be uncollectible. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three-month period follow: April May June Sales (all on account) $316,000 $575,000 $264,000 Merchandise purchases $214,000 $193,000 $ 151,500 Payroll $ 34,200 $ 34,200 $27,300 Lease payments $31,600 $31,600 $ 31,600 Advertising $ 74,000 $ 74,000 $ 43,000 Equipment purchases $70,500 Depreciation…
Prime Products hopes to borrow $51,000 on April 1 and repay it plus interest of $860 on June 30. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $24,400. Accounts receivable on April 1 will total $151,200, of which $129,600 will be collected during April and $17,280 will be collected during May. The remainder will be uncollectible. b. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three- month period follow: Sales (all on account) Merchandise purchases Payroll Lease payments April $285,000 $194,000 May $ 548,000 June $ 251,000 $ 179,000 $ 171,000 $ 35,400 $ 35,400 $ 19,900 $ 35,800 $ 35,800 $ 35,800 Advertising Equipment purchases Depreciation $ 64,400 $ 64,400 $…
Prime Products hopes to borrow $87,000 on April 1 and repay it plus interest of $1,220 on June 30. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $39,000. Accounts receivable on April 1 will total $170,800, of which $146,400 will be collected during April and $19,520 will be collected during May. The remainder will be uncollectible. b. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three- month period follow: Sales (all on account) Merchandise purchases Payroll Lease payments Advertising Equipment purchases Depreciation Required 1 Required 2 April $ 242,000 $ 213,000 $ 19,600 $ 29,200 $ 62,600 - Beginning cash balance Add receipts: Collections from customers May $…
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Hanson Construction has an operating cycle of 9 months. On December 31, 2019, Hanson hasthe following assets and liabilities:a. A note receivable in the amount of $1,500 to be collected in 6 monthsb. Cash totaling $1,380c. Accounts payable totaling $2,100, all of which will be paid within 2 monthsd. Accounts receivable totaling $12,000, including an account for $7,000 that will be paid in2 months and an account for $5,000 that will be paid in 18 monthse. Construction supplies costing $6,200, all of which will be used in construction within thenext 12 monthsf. Construction equipment costing $60,000, on which depreciation of $22,400 has accumulatedg. A note payable to the bank in the amount of $6,800 is to be paid within the next year Required:1. Calculate the amounts of current assets and current liabilities reported on Hanson’s balance sheet at December 31, 2019.2. CONCEPTUAL CONNECTION Comment on Hanson’s…
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