Calino Company Developed the Following Data for the Month of August

question 33

Essay

Calino Company developed the following data for the month of August.
1 August 1 cash balance $12,300.
2 Cash sales in August $80,000.
3 Credit sales for August are $30,000; for July $40,000; and for June $40,000. 70% of credit sales are collected in the month of sale, 15% in the following month, and 10% in the second month following the sale.
4 Purchases for July were $50,000 and for August are $40,000. One-fourth of purchases are paid in the month of purchase, and the remaining three-quarters in the following month.
5 August salaries are $31,400, utilities are $3,220, and depreciation on the building and equipment is $10,000.
Required:
A. Calculate the anticipated cash receipts from accounts receivable in August.
B. Calculate the anticipated total cash available from all sources in August.
C. Calculate the August cash payments for purchases made in July and August.
D. Calculate the anticipated cash balance on August 31.

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Definitions:

Human Resource Management

A methodical plan for the efficient management of personnel within a company or organization aimed at achieving a competitive edge in the business.

Acquisition

The process by which one company purchases most or all of another company's shares to gain control of that company.

Organizational Success

The achievement of the goals and objectives set by an organization, often measured by financial performance, market share, or the realization of its strategic aims.

People-centered Practices

Organizational strategies and policies that emphasize the importance of human resources, employee well-being, and fostering a positive work environment.