Bluebird Ltd Has Provided the Estimates Below for the July-September

question 78

Essay

Bluebird Ltd has provided the estimates below for the July-September quarter in 2017. $\begin{array}{llll} & \text { July } & \text { August } & \text { September } \\& \$ & \$ & \$ \\\text { Sales } & 13,000 & 14,000 & 15,000 \\\text { Purchases } & 9,400 & 8,000 & 10,000 \\\text { Operating expenses } & 3,600 & 6,400 & 5,000\end{array}$ You are also given the following additional information:
• 35% of sales are cash sales, the remaining 65% credit sales are collected as follows:
- $30 \%$ in the month of sale
- $40 \%$ in the month after sale
- $28 \% 2$ months after sale
- $2 \%$ lost in bad debts • Sales in the months of May and June were $11 000 and $10 000 respectively.
• Operating expenses include depreciation each month of $900. All expenses and purchases are paid for in the same month they are incurred.
• The firm expects to sell some old machinery for $7 000 in August. New machinery worth $9 500 will be purchased in September.
• The cash balance on 1st July 2017 is $5 700.
REQUIRED:
A)Prepare a schedule of receipts from accounts receivable showing the collections in the three months July to September.
B)Prepare a cash budget for Bluebird Ltd for the three months July to September.
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• A)Prepare a schedule of receipts from accounts receivable showing the collections in the three months July to September.
• B)Prepare a cash budget for Bluebird Ltd for the three months July to September.
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Definitions:

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The method through which kids grasp and convey language in their early years.

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A thought process in which irrelevant or unnecessary information is included in one's reasoning, often observed in various cognitive or psychiatric disorders.

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A stage in language acquisition where children speak using simple constructions, often leaving out unnecessary words.

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The stage in a child's development before spoken language emerges, characterized by gestures, facial expressions, and vocalizations to communicate.