Question
In: Finance
ABC Company has the following projected sales: Month Sales Jan $5,000 Feb $14,000...
ABC Company has the following projected sales:
| Month | Sales |
| Jan | $5,000 |
| Feb | $14,000 |
| Mar | $27,000 |
| Apr | $56,000 |
14% of the sales are collected in the same month. 26% of the sales
are collected after one month, 42% of the sales are collected after
two months, and the remainder are collected after three month. What
is the amount of the April collections?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12,345.678 then enter as "12345.68" in the answer box.
Solutions
Expert Solution
In order to solve this question, we need to calculate the collections for each month starting from January to April, as we want the total collection for April. This could be easily calculated using Excel.
The calculation is as follows:
The formulas used are as follows:
jeff jeffy answered 1 year agoRelated Solutions
A company has the following history of sales for an item. Month Sales Volume Jan. ...
A company has the following history of
sales for an item.
Month Sales
Volume
Jan.
120
Feb.
90
Mar.
100
Apr.
75
May
110
Jun.
50
Jul.
75
Aug.
130
Sep.
110
Oct.
90
Compute the monthly demand forecast for April through November
using a 3-month moving average. Compute the monthly demand forecast
for June through November using a 5-month moving average. Compute
the monthly demand forecast for April through November...
“The Manager has projected the following costs corresponding to sales of 14,000 and 16,000 for the...
“The Manager has projected the following costs corresponding to
sales of 14,000 and 16,000 for the next month’s operation.
Cost Items
Number of Units
14,000
16,000
Materials
£7,000
£8,000
Labour
£16,800
£19,200
Electricity
£11,580
£12,520
Rent
£8,900
£8,900
Advertising
£14,920
£16,480
Depreciation
£60,000
£60,000
Required:
Identify if the costs are fixed, variable or semi-variable.
Provide mathematical proof to justify your answers.”
“The Manager has projected the following costs corresponding to sales of 14,000 and 16,000 for the...
“The Manager has projected the following costs corresponding to
sales of 14,000 and 16,000 for the next month’s operation.
Cost Items
Number of Units
14,000
16,000
Materials
£7,000
£8,000
Labour
£16,800
£19,200
Electricity
£11,580
£12,520
Rent
£8,900
£8,900
Advertising
£14,920
£16,480
Depreciation
£60,000
£60,000
Required:
Identify if the costs are fixed, variable or semi-variable.
Provide mathematical proof to justify your answers.”
Tuscarora, Inc., a merchandising company, has the following budgeted figures: Jan Feb Mar April Sales $57,300...
Tuscarora, Inc., a merchandising company, has the following
budgeted figures:
Jan
Feb
Mar
April
Sales
$57,300
$60,000
$83,000
$98,000
Cost of goods sold
50% of sales
Required ending inventory
$10,000 + 30% of next month's sales
Inventory on hand on Jan 1
$30,000
Calculate the budgeted purchases for the month of January.
A.
$28,000
B.
$26,650
C.
$650
D.
$56,650
Tuscarora, Inc., a merchandising company, has the following budgeted figures: Jan Feb Mar April Sales $54,000.00...
Tuscarora, Inc., a merchandising company, has the following
budgeted figures:
Jan
Feb
Mar
April
Sales
$54,000.00
$69,000.00
$86,000.00
$95,000.00
Cost of goods sold
50%
of sales
Required ending inventory
$10,000.00
+
20%
of next month's sales
Inventory on hand on Jan 1
$27,500.00
Calculate the budgeted purchases for the month of January.
A. $50,800.00
B. $23,300.00
C. $3,200.00
D. $23,800.00
Nyree Company is preparing its budget for the third quarter. The
cash balance on June 30 was $32,000.00.
Additional budgeted...
Stock ABC has monthly returns over the previous year given by the following: Jan Feb Mar...
Stock ABC has monthly returns over the previous year given by
the following: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0.09
0.04 -0.02 -0.04 0.05 -0.03 -0.05 0.02 0.01 0.08 0.11 -0.03
1)Estimate the first two moment of the stock’s monthly return
distribution
2)Suppose you want to estimate the probability of the stock
having monthly returns below -0.06. In the data above, we don’t see
any such months so would the probability of such an...
ABC Company has projected Sales of $13181 in January. The sales are expected to grow by...
ABC Company has projected Sales of $13181 in January. The sales
are expected to grow by 9% each month. ABC's collection schedule is
as follows:
ABC collects 55 percent of its sales in the month of sale and
the remainder is collected in the following month. What is the
amount of the March cash collections?
The Cambridge Company has budgeted sales revenues as follows. Jan Feb Mar__ Credit sales $45,000 $36,000...
The Cambridge Company has budgeted sales revenues as follows.
Jan Feb Mar__ Credit sales $45,000 $36,000 $27,000 Cash sales
27,000 76,500 58,500 Total sales $72,000 $112,500 $85,500 Past
experience indicates that 60% of the credit sales will be collected
in the month of sale and the remaining 40% will be collected in the
following month. Purchases of inventory are all on credit; 40% is
paid in the month of purchase and 60% in the month following
purchase. Budgeted inventory purchases...
The monthly sales for Yazici Batteries, Inc., were as follows: Month Jan Feb Mar Apr...
The monthly sales for Yazici Batteries, Inc., were as
follows:
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
Sales
21
21
15
12
11
16
16
18
22
21
20
24
This exercise contains only parts b and c.
b) The forecast for the next month (Jan) using the naive
method =
nothing
sales (round your response to a whole number).
The forecast for the next period (Jan) using a 3-month moving
average approach...
Your company has projected the following numbers for the third quarter of the year: Month Sales...
Your company has projected the following numbers for the third
quarter of the year:
Month
Sales
Labor & Raw Materials Purchases
May
$ 70,000
$75,000
June
$ 90,000
$90,000
July
$130,000
$95,000
August
$120,000
$70,000
September
$100,000
$60,000
Collections occur as follows: 15% pay within the month of sale,
65% pay during the month following the sale, and 20% pay in the
second month following the sale. Payments for labor and raw
materials occur in the month following the purchase....
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