This is not the correct answer. Please see the correct answer for an explanation. We have been unable to determine how to calculate this incorrect answer choice. If you have calculated it, please let us know how you did it so we can create a full explanation of why this answer choice is incorrect. Please send us an email at support@hockinternational.com. Include the full Question ID number and the actual incorrect answer choice -- not its letter, because that can change with every study session created. The Question ID number appears in the upper right corner of the ExamSuccess screen. Thank you in advance for helping us to make the HOCK study materials better.
We need to calculate the collections and disbursements for the months of both January and February, since the question gives the beginning cash balance as of January 1 and asks for the ending cash balance at the end of February. Beginning cash balance, January 1 $200,000 January collections: From beginning A/R 1 300,000 From January sales - $700,000 × .40 280,000 January disbursements: From beginning A/P 2 (400,000) From January purchases - $350,000 × .50 (175,000) Other January expenses (150,000) February collections: From January sales - $700,000 × .60 420,000 From February sales - $800,000 × .40 320,000 February disbursements: From January purchases - $350,000 × .50 (175,000) From February purchases - $425,000 × .50 (212,500) Other February expenses (175,000) Ending cash balance, end of February $232,500 1100% collected since all accounts are collected in 2 months. 2100% paid since all accounts are paid within 2 months.
This is not the correct answer. Please see the correct answer for an explanation. We have been unable to determine how to calculate this incorrect answer choice. If you have calculated it, please let us know how you did it so we can create a full explanation of why this answer choice is incorrect. Please send us an email at support@hockinternational.com. Include the full Question ID number and the actual incorrect answer choice -- not its letter, because that can change with every study session created. The Question ID number appears in the upper right corner of the ExamSuccess screen. Thank you in advance for helping us to make the HOCK study materials better.
This is not the correct answer. Please see the correct answer for an explanation. We have been unable to determine how to calculate this incorrect answer choice. If you have calculated it, please let us know how you did it so we can create a full explanation of why this answer choice is incorrect. Please send us an email at support@hockinternational.com. Include the full Question ID number and the actual incorrect answer choice -- not its letter, because that can change with every study session created. The Question ID number appears in the upper right corner of the ExamSuccess screen. Thank you in advance for helping us to make the HOCK study materials better.
|
The company expects to collect 40% of its monthly sales in the month of sale and 60% in the following month. 50% of inventory purchases are paid in the month of purchase and 50% in the following month. Payments for all other expenses are made in the month incurred.
Given the above information, the projected ending cash balance for February will be