(Solution) 14 Budget Preparation Of Receipts From Debtors Schedule And Cash Elvstrom Company Prepares Monthly Cash Budgets. Provided Below Is A Set Of Relevant... | Snapessays.com

(Solution) 14 budget Preparation of receipts from debtors schedule and cash Elvstrom Company prepares monthly cash budgets. Provided below is a set of relevant...

hi this is my questioncan you help me to answeraaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa11.14


Preparation of receipts from debtors schedule and cash




Elvstrom Company prepares monthly cash budgets. Provided below is a


set of relevant data extracted from existing reports, and the sub-budgets


for the two months of September and October 2011.


All sales are on credit. Collections from debtors normally have the


following pattern: 60 per cent in the month of sale, 30 per cent in the


month following the sale, and 10 per cent in the second month following


the sale. Fortunately, Elvstrom does not have much trouble with bad




Sales in June, July and August were $295 000, $266 000 and $302 000


respectively. Direct material purchases are paid for in the month following


the purchase. Purchases in August were $182 000. Manufacturing


overhead includes $12 500 for depreciation expense, while the marketing


and administration expenses include an amount o± $5600 for depreciation


expenses. Elvstrom expects to be able to repay the principal on a $50 000


loan in October.




(a) Prepare a schedule of receipts from debtors for the two months


ending 31 October 2011.


(b) Prepare a cash budget for September and October 2012. The cash


balance at 31 August 2011 was $12 600.


(c) As part of its longer term plans, Elvstrom was hoping to commence a


product reinvention program for one of its core products. The project


would require an initial cash commitment of $30 000. Management


was hoping to fund this from the cash ² ows of the business. Does


this seem feasible?


Solution details:

This question was answered on: May 23, 2022

Solution~00021147602396.zip (25.37 KB)

This attachment is locked

Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .

About this Question






May 23, 2022





We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • ■ As a reference for in-depth understanding of the subject.
  • ■ As a source of ideas / reasoning for your own research (if properly referenced)
  • ■ For editing and paraphrasing.

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

Get Free Price Quote