Cash Budget Aragon and Associates has found from past experience that 25% of its services are...

Question

Question

Cash Budget Aragon and Associates has found from past experience that 25% of its services are...

Cash Budget

Aragon and Associates has found from past experience that 25% of its services are for cash. The remaining 75% are on credit. An aging schedule for accounts receivable reveals the following pattern:

Ten percent of fees on credit are collected in the month that service is rendered.
Sixty percent of fees on credit are collected in the month following service.
Twenty-six percent of fees on credit are collected in the second month following service.
Four percent of fees on credit are never collected.

Fees (on credit) that have not been paid until the second month following performance of the legal service are considered overdue and are subject to a 3% late charge.

Aragon has developed the following forecast of fees:

May	$180,000
June	200,000
July	190,000
August	194,000
September	240,000

Required:

Prepare a schedule of cash receipts for August and September. If an amount box does not require an entry, leave it blank or enter "0". Round answers to the nearest dollar.

Aragon and Associates
Schedule of Cash Receipts
For August and September
	August	September
Cash fees	$	$
Received from sales in:
June
July
August
September
Total	$	$

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Aragon and Associates Schedule of Cash Receipts August September Cash Fees $ 48,500 $ 60,000 Received from Sales in: May June

Working Notes :

Aragon and Associates Schedule of Cash Receipts August =194000*25% September =240000* 25% Cash Fees Received from Sales in: M

Note : As the 4% of the fees is never collected, 3% charge on such is also not considered in calculation, however if we consider the charge then solution would be:

Aragon and Associates Schedule of Cash Receipts August September Cash Fees $ 48,500 $ 60,000 Received from Sales in: May $ 16

In case of any doubts or Issues, please do comment below

Add a comment

Answer 2

Similar Homework Help Questions

Cash Budget Aragon and Associates has found from past experience that 25% of its services are...

Cash Budget Aragon and Associates has found from past experience that 25% of its services are for cash. The remaining 75% are on credit. An aging schedule for accounts receivable reveals the following pattern: a. Ten percent of fees on credit are collected in the month that service is rendered. b. Sixty percent of fees on credit are collected in the month following service. C. Twenty-six percent of fees on credit are collected in the second month following service. d....
Schedule of Cash Receipts Del Spencer is the owner and founder of Del Spencer's Men's Clothing...

Schedule of Cash Receipts Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable reveals the following pattern: 15 percent of credit sales are paid in the month of sale. 65 percent of credit sales are paid in the first month...
Schedule of Cash Receipts Del Spencer is the owner and founder of Del Spencer's Men's Clothing...

Schedule of Cash Receipts Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable reveals the following pattern: 15 percent of credit sales are paid in the month of sale. 65 percent of credit sales are paid in the first month...

Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has...

Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable reveals the following patten: 15 percent of credit sales are paid in the month of sale 65 percent of credit sales are paid in the first month following the sale. 14...
Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about 30% of its sales...

Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about 30% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience: Percent paid in the month of sale 25 Percent paid in the month after the sale Percent paid in the second month after the sale Bennett's anticipated sales for the next few months are as follows: April $250,000 May 290,000 June 280,000 July 295,000 300,000 August Required:...
Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its...

Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale 20 Percent paid in the month after the sale 55 Percent paid in the second month after the sale 23 To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April...

Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about 15%...

Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about 15% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience: Percent paid in the month of sale 25 Percent paid in the month after the sale 68 Percent paid in the second month after the sale 5 Bennett's anticipated sales for the next few months are as follows: April $250,000 May 290,000 June 280,000 July 295,000 August...
8 Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of...

8 Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale Percent paid in the month after the sale Percent paid in the second month after the sale To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April $275,500 May...
Ewing Company is preparing a cash budget for September. The following information on accounts receivable collections is available from past collection experience. Percent of current month’s sales collected this month 20 % Percent of prior month’s

Ewing Company is preparing a cash budget for September. The following information on accounts receivable collections is available from past collection experience. Percent of current month’s sales collected this month20%Percent of prior month’s sales collected this month57Percent of sales two months prior to current month collected this month12Percent of sales three months prior to current month collected this month8The remaining 3 percent is not collected and is written off as bad debts. Credit sales to date are as follows. September—estimated$280,000August252,000July240,000June286,000Required:What are the...

Question 3 (10 marks) BBG Limited is now in the process of preparing its cash budget...

Question 3 (10 marks) BBG Limited is now in the process of preparing its cash budget for October. The nning cash balance is $44,000. Budgeted cash receipts total $318,000 and budgeted cash disbursements total $344,000. The desired ending cash balance is $60,000. BBG can borrow up to $500,000 from Hang Seng Bank whenever they are in need of cash, with interest not due until the following month. Required: Prepare the BBG's cash budget for October in good form. Question 4...

Cash Budget Aragon and Associates has found from past experience that 25% of its services are...

Homework Answers

Add Answer to:
Cash Budget Aragon and Associates has found from past experience that 25% of its services are...

Post as a guest

Earn Coins