Morgan Company's budgeted income statement reflects the following amounts: Sales Purchases Expenses January $ 112,000 $ 70,000 $ 23,200 February 102,000 58,000 23,400 March 117,000 73,250 26,200 April 122,000 76,500 27,800 Sales are collected 50% in the month of sale, 30% in the month following sale, and 19% in the second month following sale. One percent of sales is uncollectible and expensed at the end of the year. Morgan pays for all purchases in the month following purchase and takes advantage of a 3% discount. The following balances are as of January 1: Cash $ 80,000 Accounts receivable * 50,000 Accounts payable 64,000 * Of this balance, $30,000 will be collected in January and the remaining amount will be collected in February. The monthly expense figures include $4,200 of depreciation. The expenses are paid in the month incurred. Morgan's budgeted cash receipts in February are:
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Morgan Company's budgeted income statement reflects the following amounts: Sales Purchases Expenses January $ 112,000 $ 70,000 $ 23,200 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Smith buys and sells securities. On December 15, 2018, Smith purchased $507,000 of Jones shares and elected the fair value option to account for the Jones investment. As of December 31, 2018, the Jones shares had a fair value of $606,000.
Answers (1)
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $2,500 per unit; variable costs = $500 per unit; fixed costs = $5.1 million; quantity = 80,000 units.
Answers (1)
To sit next to her mother at a restaurant, diana pushes her little brother mark out of the way. what type of aggression is this?
Answers (1)
The process of assigning meaningful authority and responsibility to managers and employees lower in the hierarchy is called: a. accountability b. responsibility c. delegation d. position power
Answers (1)
Assuming diminishing returns, A. the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, rich countries should grow faster than poor ones. B.
Answers (1)
New Questions in Business
Net worth is the difference between a firm's assets and its liabilities. a. True b. False
Answers (1)
Buyer Jim agreed to a 20-day window to get a survey done. A number of problems have occurred and after 20 days from the signed contract date, buyer Jim has yet to have a survey completed. What is now the status of the sales contract? a.
Answers (1)
Lawrence has worked in his career field for 20 years. one benefit of his experience over younger employees lies in
Answers (1)
Ingredient lists on gum packages remain somewhat vague, even though these labels fall under federal regulations, because the manufacturers feel their ingredient lists are _[blank]_.
Answers (1)
Kirsten is trying to decide where to go for her well earned vacation. She would like to camp, but if the weather is bad, she will have to go to a motel.
Answers (1)