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Prepare schedule of cash collections and cash payments

Pet Joy Wholesale Inc., a pet wholesale supplier, was organized on May 1, 2010. Projected sales for each of the first three months of operations are as follows:

May $340,000
June 460,000
July 610,000

The company expects to sell 11% of its merchandise for cash. Of sales on account, 53% are expected to be collected in the month of the sale, 42% in the month following the sale, and the remainder in the second month following the sale.

Prepare a schedule indicating cash collections from sales for May, June, and July.

PET JOY WHOLESALE INC.
Schedule of Collections from Sales
For the Three Months Ending July 31, 2010
May June July
Receipts from cash sales:
Cash sales
May sales on account:
Collected in May
Collected in June
Collected in July
June sales on account:
Collected in June
Collected in July
July sales on account:
Collected in July
Total cash collected:

Excel Learning Systems Inc. was organized on May 31, 2010. Projected selling and administrative expenses for each of the first three months of operations are as follows:

June $155,100
July 145,800
August 132,700

Depreciation, insurance, and property taxes represent $33,000 of the estimated monthly expenses. The annual insurance premium was paid on May 31, and property taxes for the year will be paid in December. Of the remainder of the expenses, 59% are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.

Prepare a schedule indicating cash payments for selling and administrative expenses for June, July, and August. Enter all amounts as positive numbers.

EXCEL LEARNING SYSTEMS INC.
Schedule of Cash Payments for Selling and Administrative Expenses
For the Three Months Ending August 31, 2010

June July August
June expenses:
Paid in June
Paid in July
July expenses:
Paid in July
Paid in August
August expenses:
Paid in August
Total cash payments

Solution Summary

Your tutorial is in Excel attached. Click in the cells to see the computations.

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