The Following Are Forecasts of Sales and Purchases for Raleigh

question 96

Essay

The following are forecasts of sales and purchases for Raleigh Company:
$\begin{array}{lll}&Sales~~~~~~~~&Purchases\\\hline\text { April } & \$ 80,000 & \$ 30,000 \\\text { May } & 90,000 & 40,000 \\\text { June } & 85,000 & 30,000\end{array}$ All sales are on credit.Records show that 70 percent of the customers pay the month of the sale,20 percent pay the month after the sale,and the remaining 10 percent pay the second month after the sale.Purchases are all paid the following month at a 2 percent discount.Cash disbursements for operating expenses in June were $5,000.
Required: Prepare a schedule of cash receipts and disbursements for June.

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Definitions:

Cause-And-Effect Diagram

A schematic technique used to discover possible locations of quality problems; also known as an Ishikawa diagram or a fishbone chart.

Flexible Pricing

A pricing strategy where the prices of goods or services are allowed to fluctuate based on market demand, competition, and other factors.

Manufacturing-Based Definition

A perspective on quality that emphasizes conformance to specifications and standards during the production process.