50.1K

Verified Solution

Link Copied!

As soon as possible please

Brights purchases and installs sky lights. The entity's estimated sales and expenses for the fist 4 months of 2017 are: Month Sales Expenses January $635 $217 February $1038 $217 March $987 $217 April $987 $217 Actual sales for November and December 2016 were $924 and $806 respectively and actual expenses were $217 for each month. All sales are on credit, and the firm estimates that 33% of the accounts receivable will be collected in the month after sale with the other 67% collected the second month following sale. The average selling price for the products sold is $6. The cash balance as at 1 January 2017 is expected to be $1114. The firm pays for 30% of its purchases in the month after purchase and the balance is paid in the second month following purchase. Average gross profit margin is 48%. The firm plans to continue maintaining an end-of-month inventory equal to 24% of the next month's projected cost of sales. Depreciation amounting to $166 per month and wages of $132 are included in the monthly expenses of 217. Other expenses are paid during the month they are incurred. Prepare a monthly schedule of expected cash receipts for the first quarter of 2017 and enter the total cash receipts in the month of February in the answer block below

Answer & Explanation Solved by verified expert

See Answer