b Merchandise purchases were43000 and 81000 for March and Ap

b. Merchandise purchases were$43,000 and $81,000 for March and April respectively. Typically, 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month. March purchases s April purchases Cash paid in Apri 0 X c. Fixed administrative expenses, which total $14,000 per month, are paid in the month incurred. Variable administrative expenses amount to 20% of total monthly sales revenue, one-half of which paid in the month incurred, with the balance paid in the following month. April fowed expenses s 0 x March variable expenses April variable expenses Cash paid in April d. A store asset originally costing $11,000, on which $6.000 depreciation has been taken, is sold for cash at a loss of $400 so x Check You have correctly selected 0 5 6 8 9

Answer of 4(b) from 1^st image:

Cash paid in April:

From March Purchase (48000*80%) : 38,400

(Without any discount as it is paid in following month)

From April Purchases [81000*20%- 5% of (81000*20%)] : 15,390

(After deducting 5 percent discount as it is paid in same month)

So, Cash paid in April : 53,790

Answer of 4(c) from 1^st image:

April fixed expenses (paid in the month incurred) : 14,000

March Variable Expenses : 15,500
[Revenue for the month of March = 1,55,000 (31*5000)
Variable expense for the month of march = 20% of 1,55,000 = 31,000.
50% of 31,000 for the month of march that will be paid in the month
of April i.e. 15,500]

April Variable Expenses : 18,600
[Revenue for the month of April = 1,86,000 (31*5,000)
Variable expenses for the month of April = 20% of 1,86,000 = 37,200.
50% of 37,200 for the month of April that will be paid in the same
month i.e. 18,600]

Cash paid in April : 48,100

Answer of 4(d) from 1^st image:

The asset is sold at loss of $400

Cost of Asset : 11,000

Less: Depreciation : 6,000

Less: Loss on asset : 400

Amount at which asset was sold i.e. the amount that Whitfield
receive for sale of asset : 4,600

Answer of Question 4 (a) from 2^nd image

We have to find Cash Collected in April:

· March Sales : 65,100

(70% of credit sales in march will be our cash collection for the
month of April. So, Credit sales for march is 60% of (31*5000)
i.e. 93,000. 70% of 93000 will be cash collection for April i.e.
65,100)

· April Cash Sales
(40% of 31*6000) : 74,400

· April Credit Sales
[30% of 60%(31*6000)] : 33,480
(as 30% of credit sales is collected in the month of sales)

Cash Collected in April : 1,72,980

Answer of 4(b) from 1^st image:

Cash paid in April:

From March Purchase (48000*80%) : 38,400

(Without any discount as it is paid in following month)

From April Purchases [81000*20%- 5% of (81000*20%)] : 15,390

(After deducting 5 percent discount as it is paid in same month)

So, Cash paid in April : 53,790

Answer of 4(c) from 1^st image:

April fixed expenses (paid in the month incurred) : 14,000

Cash paid in April : 48,100

Answer of 4(d) from 1^st image:

The asset is sold at loss of $400

Cost of Asset : 11,000

Less: Depreciation : 6,000

Less: Loss on asset : 400

Amount at which asset was sold i.e. the amount that Whitfield
receive for sale of asset : 4,600

Answer of Question 4 (a) from 2^nd image

We have to find Cash Collected in April:

· March Sales : 65,100

· April Cash Sales
(40% of 31*6000) : 74,400

· April Credit Sales
[30% of 60%(31*6000)] : 33,480
(as 30% of credit sales is collected in the month of sales)

Cash Collected in April : 1,72,980

Answer of 4(b) from 1st image:

Cash paid in April:

From March Purchase (48000*80%) : 38,400

(Without any discount as it is paid in following month)

From April Purchases [81000*20%- 5% of (81000*20%)] : 15,390

(After deducting 5 percent discount as it is paid in same month)

So, Cash paid in April : 53,790

Answer of 4(c) from 1st image:

April fixed expenses (paid in the month incurred) : 14,000

Cash paid in April : 48,100

Answer of 4(d) from 1st image:

The asset is sold at loss of $400

Cost of Asset : 11,000

Less: Depreciation : 6,000

Less: Loss on asset : 400

Amount at which asset was sold i.e. the amount that Whitfield
receive for sale of asset : 4,600

Answer of Question 4 (a) from 2nd image

We have to find Cash Collected in April:

· March Sales : 65,100

· April Cash Sales
(40% of 31*6000) : 74,400

· April Credit Sales
[30% of 60%(31*6000)] : 33,480
(as 30% of credit sales is collected in the month of sales)

Cash Collected in April : 1,72,980

Answer of 4(b) from 1^st image:

Cash paid in April:

From March Purchase (48000*80%) : 38,400

(Without any discount as it is paid in following month)

From April Purchases [81000*20%- 5% of (81000*20%)] : 15,390

(After deducting 5 percent discount as it is paid in same month)

So, Cash paid in April : 53,790

Answer of 4(c) from 1^st image:

April fixed expenses (paid in the month incurred) : 14,000

Cash paid in April : 48,100

Answer of 4(d) from 1^st image:

The asset is sold at loss of $400

Cost of Asset : 11,000

Less: Depreciation : 6,000

Less: Loss on asset : 400

Amount at which asset was sold i.e. the amount that Whitfield
receive for sale of asset : 4,600

Answer of Question 4 (a) from 2^nd image

We have to find Cash Collected in April:

· March Sales : 65,100

· April Cash Sales
(40% of 31*6000) : 74,400

· April Credit Sales
[30% of 60%(31*6000)] : 33,480
(as 30% of credit sales is collected in the month of sales)

Cash Collected in April : 1,72,980

b. Merchandise purchases were$43,000 and $81,000 for March and April respectively. Typically, 20% of total purchases are paid for in the month of purchase with

b Merchandise purchases were43000 and 81000 for March and Ap

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