Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rosewood guitar, inc. is preparing it cash receipt

Rosewood Guitar, Inc. is preparing it cash receipts schedule for the 1stquarter ending 20x1.  In doing so,...

50.1K

Verified Solution

Question

Accounting

Rosewood Guitar, Inc. is preparing it cash receipts schedule forthe 1stquarter ending 20x1.  In doing so, itsbudget director prepared the following budgeted sales schedule:

Rosewood Guitar Company

Sales Budget

For the Quarter Ending March 31, 20x1

January

February

March

Budgeted sales

$185,000

$195,000

$225,000

Addition Information:

  • Sales for the prior November and December 200x0 were $150,000and $165,000, respectively.
  • 55% of sales are for cash, the remaining 45% are credit sales.
    • Credit sales are collected as follows:
      • 15% in the month of sale
      • 65% in the month following the sale, and the remaining
      • 15% in the second month following the sale.
  • The company estimates that the remainder of credit sales willbe uncollectible.

Required

  1. Prepare a cash receipts schedule for the first quarter of 20x1.(Please show your detailed schedule)
  2. What is the total amount of uncollected accounts receivable forthe 3-month period, January, February and March?
  3. Briefly, provide the definition for the term “budgetaryslack.”  Why does, budgetary slack occur?
  4. What is the primary indication that “budgetary slack” isoccurring?

Answer & Explanation Solved by verified expert
3.8 Ratings (443 Votes)
Answer    See Answer
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

Q

Select the correct answer from each drop-down menu.Car Mod ...

Geometry
Q

the blank ability problems that require obtaining a favorable outcome in each of the given...

Basic Math
Q

A model for a company's revenue from selling a software package is R = -2.5p...

Calculus
Q

Find the area between the curve y x 2 and the line y 2x 3...

Calculus
Q

The driving force of the US market economy is the dynamic interaction of 1 producers...

Algebra
Q

Find the measure of the line segment indicated 5 Find FH 6 Find BK N...

Algebra
Q

Hartman, Inc. has prepared the following comparative balance sheets for 2020 and 2021: 2021 2020...

Accounting
Q

Answer the following questions. Hint: Use the accounting equation. a. On January 1, Lumia...

Accounting
Q

The following information is available for Fenton Manufacturing Company at June 30: Cash in bank...

Accounting
Q

Print Item Alternative Capital Investments The investment committee of Sentry Insurance Co. is evaluating...

Accounting
Q

Multistep question need help with both. The primary goals of inventory management do not...

Accounting
Q

Compute the net cash flow from operating activities using the direct method for Brooke Sportwear....

Accounting