Question 1: Cash synchronization from the Cash Budget Month Sales $M J F M A...
Question 1: Cash synchronization from the Cash Budget
|
Month Sales $M |
J |
F |
M |
A |
M |
J |
J |
A |
S |
|
20.5M |
20.0 |
22.0 |
18.0 |
19.5 |
20.0 |
22.0 |
25.0 |
||
|
$ |
|||||||||
|
$ |
ASSUMPTIONS:
10% in the month of sale
40% one month after the sale
20% 2 months after the sale
Remainder two months after the sale
Required:
1.. From the populated table above, The Cash receipts in September is: $ _______
2 From the table above outstanding account receivables in August is: $ ______
3.. Would you give a loan of $15.0 M in August, assuming a collection risk of 15%?
Explain here:
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
Question 2. The invoice for the above business came in with payment condition of 3/15 net 60
What % could the business borrow at so that they would be indifferent between the discount and borrowing option to take the discount?
Answer ______ %
Fully explain below your % above by using numbers and words to convince you reader of your
decision as done in class:
…………………………………………………………………………. ……………………………………..
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
Homework Answers
Add Answer to:
Question 1: Cash synchronization
from the Cash Budget
Month
Sales $M
J
F
M
A...
Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May...
Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May $140,000 June 140,000 July 180,000 August 120,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: 60 percent in the month of sale. 20 percent in the month following sale. 15 percent in the second month following sale. 5 percent uncollectible. The company gives a 1...
Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May...
Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May $140,000 June 140,000 July 180,000 August 120,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: 60 percent in the month of sale. 20 percent in the month following sale. 15 percent in the second month following sale. 5 percent uncollectible. The company gives a 1...
Cash Receipts The sales budget for Andrew Inc. is forecasted as follows: Month Sales Revenue May...
Cash Receipts The sales budget for Andrew Inc. is forecasted as follows: Month Sales Revenue May $ 150.000 June 175,000 July 160,000 August 200.000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales • 60 percent in the month of sale. • 20 percent in the month following sale. • 15 percent in the second month following sale. • 5 percent uncollectible....
Armidale Corporation has provided the following cash budget forecasts: Month Sales Purchases July $30,000 $10,000 August...
Armidale Corporation has provided the following cash budget forecasts: Month Sales Purchases July $30,000 $10,000 August 34,000 $12,000 September 38,000 $14,000 October 42,000 $16,000 November 48,000 $18,000 December 60,000 $20,000 Cash is collected from customers in the following manner: Month of sale (2% cash discount)30% , Month following sale 50% ,Two months following sale 15% ,Amount uncollectible 5%. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Required:...
Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its...
Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale 20 Percent paid in the month after the sale 55 Percent paid in the second month after the sale 23 To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April...
Question 2. (cash receipts from sales) Budgeted sales revenue for the coming five months is as...
Question 2. (cash receipts from sales) Budgeted sales revenue for the coming five months is as follows: Month Sales revenue August $160,000 September $155,000 October $155,000 November $115,000 December $180,000 You estimate that you will collect 35% of sales revenue in the month of sale, 35% in the following month, 25% two months after the sale, and the remaining 5% three months after the sale. Required: Compute budgeted cash inflows for November and December. November = $ December...
8 Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of...
8
Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale Percent paid in the month after the sale Percent paid in the second month after the sale To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April $275,500 May...
Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about 30% of its sales...
Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about 30% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience: Percent paid in the month of sale 25 Percent paid in the month after the sale Percent paid in the second month after the sale Bennett's anticipated sales for the next few months are as follows: April $250,000 May 290,000 June 280,000 July 295,000 300,000 August Required:...
CASH BUDGET WITH EXPLANATION Budget Information. December 2017 - March 2018 our bank account Assignment 5...
CASH BUDGET WITH EXPLANATION Budget Information. December 2017 - March 2018 our bank account Assignment 5 Part A THE CASH BUDGET WITH EXPLANATION Millennium Corporation Cash Budget Information - December 2017 - March 2018 Budget Items Total Sales Credit Sales December 1.200.000 1.080.000 January Jar 1.500.000 1.350.000 February 1300000 1,300,000 1.170,000 March 1,400,000 1,260,000 300.000 30.000 15.000 310,000 30,000 16,000 Wages & Salaries Rentals Other Expenses Taxes Paid Dividends Equipment Purchase Cash Balance 325,000 30.000 17.000 150,000 50.000 declared 90,000...
Use the information provided below to prepare the Cash Budget of Project M for June, July...
Use the information provided below to prepare the Cash Budget of Project M for June, July and August 2020. (Note: Use separate monetary columns for each month. A total column is not required.) INFORMATION The management accountant of Remax Limited prepared the following forecasted sales schedule of Project M for the five months ended 31 August 2020: April R100 000 May R130 000 June R150 000 July R160 000 August R210 000 Additional information 1. Cash...
Cash Receipts The sales budget for Andrew Inc. is forecasted as follows: Month Sales Revenue May $ 150.000 June 175,000 July 160,000 August 200.000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales • 60 percent in the month of sale. • 20 percent in the month following sale. • 15 percent in the second month following sale. • 5 percent uncollectible....
8
Schedule of Cash Collections on Accounts Receivable and Cash Budget Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience: Percent paid in the month of sale Percent paid in the month after the sale Percent paid in the second month after the sale To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows: April $275,500 May...
Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about 30% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience: Percent paid in the month of sale 25 Percent paid in the month after the sale Percent paid in the second month after the sale Bennett's anticipated sales for the next few months are as follows: April $250,000 May 290,000 June 280,000 July 295,000 300,000 August Required:...
CASH BUDGET WITH EXPLANATION Budget Information. December 2017 - March 2018 our bank account Assignment 5 Part A THE CASH BUDGET WITH EXPLANATION Millennium Corporation Cash Budget Information - December 2017 - March 2018 Budget Items Total Sales Credit Sales December 1.200.000 1.080.000 January Jar 1.500.000 1.350.000 February 1300000 1,300,000 1.170,000 March 1,400,000 1,260,000 300.000 30.000 15.000 310,000 30,000 16,000 Wages & Salaries Rentals Other Expenses Taxes Paid Dividends Equipment Purchase Cash Balance 325,000 30.000 17.000 150,000 50.000 declared 90,000...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago