Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. required information information on the actual sal

Required information Information on the actual sales and inventory purchases of the Law Company for...

70.2K

Verified Solution

Question

Accounting

image
image
Required information Information on the actual sales and inventory purchases of the Law Company for the first quarter follow: Inventory Sales Purchases January $106.000 $60,000 February $92,000 $72,000 March $120,000 $92,000 Collections from Law Company's customers are normally 60% in the month of sale, 30% in the month following sale, and 8% in the second month following sale. The balance is uncollectible. Law Company takes full advantage of the 2% discount allowed on purchases paid for by the end of the following month. The company expects sales in April of $150,000 and inventory purchases of $109,000. Operating expenses for the month of April are expected to $36.000, of which $15,000 is salaries and $8,000 is depreciation. The remaining $13,000 of operating expenses are variable with respect to the amount of sales in dollars. Those operating expenses requiring a cash outlay are paid for during the month incurred. Law Company's cash balance on March 1 was $42,000, and on April 1 was $35,200. What would be the expected cash balance on April 30? What would be the expected cash balance on April 30? Multiple Choice $62.700 $28,700 $50,400 $19,700

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

ww to 2 4 to k 16 Macmillan Learning now to HOW W To help...

Algebra
1.2K views

The population of a certain inner city area is estimated to be declining according to...

Algebra
1.2K views

Suppose the rate of change of the unit price p of video boards is p'(x)=where...

Accounting
1.2K views

content area mastery problem: job order costing (advanced) question content area cost flows the price...

Accounting
1.2K views

Data related to the inventories of Kimzey Medical Supply are presented below! surgical Selling price...

Accounting
1.2K views

Sather Ltd. had the following unadjusted account balances at December 31, 2017: Required: 1. Assume...

Accounting
1.2K views

For each of the following accounts indicate the effect of a debit or a credit...

Accounting
1.2K views

During the current year, Comma Co. had outstanding: 25,000 shares of common stock, 8,000 shares...

Accounting
1.2K views

Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162,...

Accounting
1.2K views

AudioMart is a retailer of radios, stereos, and televisions. The store carries two portable sound...

Finance
1.2K views

You have just sold your house for $1,100,000 in cash. Your mortgage was originally a...

Finance
1.2K views

Please Help and show works 4. (9 points) Consider a European put option on...