Part 1:

Jasper Company has sales on account and for cash. Specifically,64% of its sales are on account and 36% are for cash. Credit salesare collected in full in the month following the sale. The companyforecasts sales of $515,000 for April, $525,000 for May, and$550,000 for June. The beginning balance of Accounts Receivable is$301,900 on April 1. Prepare a schedule of budgeted cash receiptsfor April, May, and June.

April May June
Cash sales 36% $185,400 $189,000 $198,000
Sales on account 64% 329,600 336,000 352,000
Total sales $515,000 $525,000 $550,000
Schedule of Cash Receipts
For April, May, and June
April May June
Cash receipts from:
Cash sales $185,400 $189,000 $198,000
Collection ofaccounts receivable 301,900
Total budgeted cashreceipts $487,300

Part 2:

Zisk Co. purchases raw materials on account. Budgeted purchaseamounts are: April, $94,000; May, $124,000; and June, $134,000.Payments are made as follows: 70% in the month of purchase and 30%in the month after purchase. The March 31 balance of accountspayable is $36,000.

Prepare a schedule of budgeted cash payments for April, May, andJune.

April May June
Currentmonth purchases 70% $65,800 $86,800 $93,800
Endingaccounts payable 30% 28,200 37,200 40,200
Total purchases $94,000 $124,000 $134,000
Zisk Co.
Schedule of Cash Payments
For April, May, and June
April May June
Cashpayments for:
Currentmonth purchases $65,800 $86,800 $93,800
Priormonth purchases 36,000
Budgeted cash payments for materials $101,800

For unlimited access to Homework Help, a Homework+ subscription is required.

Tod Thiel
Tod ThielLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in

Related questions

Weekly leaderboard

Start filling in the gaps now
Log in