Question

(Chapters 1,4,5) Submitted 80.37/100 Total points awarded Help E Explanation Show my answers January through March. Following are actual and forecasted sales figures: Actual Forecast Additional Information November $440,000 January $520,000 April $570,000 forecast December 460,000 February 560,000 March 580,000 ed of the firm's sales, 40 percent are for cash and the remaining 60 percent are on credit. Of credit sales, 30 percent are paid in the month after sale and 70 percent are paid in the second month after the sale. Materials cost 50 percent of sales and are purchased and received each month in an amount sufficient to cover the following month's expected sales. Materials are paid for in the month after they are received. Labour expense is 30 percent of sales and is paid in the month of sales. Selling and administrative expense is 4 percent of sales and is also paid in the month of sales. Overhead is $40,000 in cash per month: Amortization expense is $11,200 per month. Taxes of $8,000 will be paid in January and dividends of $8,000 will be paid in March. Cash at the beginning of Jarldary is $104,000, and the minimum desired cash balance is $99,000 a. Prepare a schedule of monthly cash receipts for January, February and March Jim Daniels Health Products < Prev 25 of 43 !!! Next > earch

Answer 1

Solution:

Schedule of expected cash collection - Jim Daniel Health products
Particulars	January	February	March	Total
Cash Sales	$208,000.00	$224,000.00	$232,000.00	$664,000.00
Cash received for November Credit Sales	$184,800.00			$184,800.00
Cash received for December Credit Sales	$82,800.00	$193,200.00		$276,000.00
Cash received for Janaury Credit Sales		$93,600.00	$218,400.00	$312,000.00
Cash received for February Credit Sales			$100,800.00	$100,800.00
Budgeted Cash Collection	$475,600.00	$510,800.00	$551,200.00	$1,537,600.00