Home
Search
Gallery
Blog
Dictionary
Textbooks
Resource Library
Flashcards
Latest Topics
Ask a Question
Home
Take a Tour
Study Tips
Help Pages
Contact Us
Gallery
Recently Added
Search
Blog
Dictionary
Add New Word
Random Term
Recent Changes
Resource Library
Share Your Resources
Recently Added
Search
Ask a Question
Log In
Sign Up
homework help
portal
Q & A Board
Gallery
Notes and Downloads
This Board
Research Articles
Entire Website using Google
Forum
Search
Advanced Search
Image Gallery
Resource Library
Browse by
Textbooks
Chat
Subjects
Recent
Posts
•
Latest Topics
•
Unanswered Questions
Top Posters
Since Sunday
14
o
6
1
l
1
J
1
a
1
C
1
r
1
1
A
1
1
Home
Q & A Board
Other Fields Homework Help
Business
Accounting
Print
New Topic
Garden Gnomes Company produces various types of lawn ornaments. The company's sales budget for the ...
manonvsb
manonvsb
wrote...
Go to Answer
Posts:
65
Rep:
1
0
A month ago
A month ago
Garden Gnomes Company produces various types of lawn ornaments. The company's sales budget for the ...
Garden Gnomes Company produces various types of lawn ornaments. The company's sales budget for the first four months of the coming year is as follows. All sales are made on credit.
March
April
May
June
Budgeted sales
$550,000
$650,000
$700,000
$620,000
Garden Gnomes is planning to change its credit policies in the coming year. For the first time in its history, the company is offering a 2 percent discount to customers who pay within 15 days of the invoice date. Based on industry trends, Garden Gnomes estimates that this change will result in 60 percent of credit sales being paid within the discount period; another 20 percent of sales, within the month of sale (but outside of the discount period); and another 15 percent of sales, during the month after the sale. An estimated 5 percent of sales will be uncollectible.
Required:
a.
Prepare Garden Gnomes' cash receipts budget for the second quarter of the coming
year.
Omit the heading.
b.
How much cash will Garden Gnomes sacrifice in the second quarter by offering the
new discount?
c.
What do you think led Garden Gnomes to offer the new discount to customers?
Textbook
Managerial Accounting
Edition:
4
th
Author:
Davis
Read 3 times
1
Reply
Report
Replies
Answer verified by a
subject expert
Jsimon
Jsimon
wrote...
#1
Answer Link
Posts:
63
Rep:
0
0
A month ago
A month ago
Sign in
or
Sign up
in seconds to unlock everything for free
Login with Facebook
Login with Google
Login with Twitter
More solutions for this book are
available here
b.
April: $650,000 60% 2% =
$ 7,800
May: $700,000 60% 2% =
8,400
June: $620,000 60% 2% =
7,440
$23,640
c.
Garden Gnomes may have offered the discount to customers because competitors
were doing the same thing, or it could be that the company needed to accelerate its cash flows to be able to pay its bills on time.
1
Report
Related Topics
Solved
In which of the following company types does a manager use a sales budget?
Solved
Jason Company manufactures custom engines for use in the lawn and garden equipment industry. The com
Solved
Cooper's Company manufactures custom engines for use in the lawn and garden equipment industry. The
Solved
Twinkle Ornaments Company uses job costing. Twinkle Ornaments Company has two departments, Trimming
Solved
Twinkle Ornaments Company uses job costing. Twinkle Ornaments Company has two departments, Trimming
Solved
Kimball Gardens is a company that operates as two distinct businesses one that sells lawn and garden ...
The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is ...
Solved
Milligan Manufacturing Company produces and sells garden tools. The company has developed the ...
Show More
manonvsb
Author
wrote...
A month ago
Smart ... Thanks!
mcraver1
wrote...
Yesterday
Brilliant
ツ
djeghri
wrote...
2 hours ago
Thanks
New Topic
Quick Reply
[center][color=gray]Please [b]login or register[/b] to leave a reply[/color][/center]
Explore
Post your homework questions and get free online help from our incredible volunteers
73 People Browsing
315 Signed Up Today
Start New Topic
Take the Tour
Study Tips
Study Tools
New
Topics Trending
Browse by Textbook
Related Images
846
190
406
Your Opinion
What's your favorite math subject?
Algebra
Calculus
Trigonometry
Geometry
Statistics and Probability
Logic and Proofs
Other
Votes: 183
Previous poll results:
How often do you eat-out per week?
Latest Blogs
A sense of control can aid recovery
Important but Disappearing Reflexes
A meta-analysis of 40 studies concludes that cinnamon can improve memory ...
An explanation for déjà vu
Why is sand listed as an ingredient in my potato chips?
Ready to ask a question on
Biology Forums
?
Try it out
Describe the techniques and imagery used by Grayson Perry to create Quotes from the Internet.
-
Art and Culture
Explain why Allport had a negative attitude toward the use of lower animals, chi
-
Psychology
Construct a frequency distribution for the set of data below. Use four classes, beginning with "20 ...
-
Mathematics
Do cells behave less like a team over time?
-
Cell Biology
Tanya Cordobes borrowed $9,500 from a bank. The loan was amortized over two years. Tanya made equal ...
-
Mathematics
Pineapples carry harmful insect shell insects, safe to eat?
-
News Articles and Discussion
Suppose adults in a particular town drive a mean of 65 mph with a standard devia
-
Mathematics
Alpha Bank has $100,000 in total assets and $45,000 in total liabilities.
-
Economics
Genetics/autosomal recessive inheritance (urgent)
-
Genetics and Developmental Biology
Is a bond quoted at 105 selling at a premium or a discount?
-
Mathematics
Loading...