Calino Company developed the following data for the month of August.
1 August 1 cash balance $12,300.
2 Cash sales in August $80,000.
3 Credit sales for August are $30,000; for July $40,000; and for June $40,000. 70% of credit sales are collected in the month of sale, 15% in the following month, and 10% in the second month following the sale.
4 Purchases for July were $50,000 and for August are $40,000. One-fourth of purchases are paid in the month of purchase, and the remaining three-quarters in the following month.
5 August salaries are $31,400, utilities are $3,220, and depreciation on the building and equipment is $10,000.
Required:
A. Calculate the anticipated cash receipts from accounts receivable in August.
B. Calculate the anticipated total cash available from all sources in August.
C. Calculate the August cash payments for purchases made in July and August.
D. Calculate the anticipated cash balance on August 31.

Question

Quizplus · Accepted Answer

The Answer of Calino Company developed the following data for the month of August.
1 August 1 cash balance $12,300.
2 Cash sales in August $80,000.
3 Credit sales for August are $30,000; for July $40,000; and for June $40,000. 70% of credit sales are collected in the month of sale, 15% in the following month, and 10% in the second month following the sale.
4 Purchases for July were $50,000 and for August are $40,000. One-fourth of purchases are paid in the month of purchase, and the remaining three-quarters in the following month.
5 August salaries are $31,400, utilities are $3,220, and depreciation on the building and equipment is $10,000.
Required:
A. Calculate the anticipated cash receipts from accounts receivable in August.
B. Calculate the anticipated total cash available from all sources in August.
C. Calculate the August cash payments for purchases made in July and August.
D. Calculate the anticipated cash balance on August 31.

Calino Company Developed the Following Data for the Month of August