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    Prepare schedule of cash collections and cash payments

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    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

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    https://brainmass.com/business/cash-management/prepare-schedule-of-cash-collections-and-cash-payments-408038

    Solution Summary

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

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