Question
In: Finance
Sequoia Furniture Company’s sales over the past three months, half of which are for cash, were...
Sequoia Furniture Company’s sales over the past three months, half of which are for cash, were as follows:
| March | April | May |
| $430,000 | $680,000 | $550,000 |
a. Assume that Sequoia’s collection period is 60 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May?
Cash receipts
Accounts receivable balance
b. Now assume that Sequoia’s collection period is 45 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May?
|
Solutions
Expert Solution
Answer a.
Collection period is 60 days which means credit sale during March will be collected in May and April credit sale will be collected in June.
Cash receipts in May = Cash sales in May + Credit sales in
March
Cash receipts in May = $275,000 + $215,000
Cash receipts in May = $490,000
Accounts receivable in May = Credit sales in April + Credit
sales in May
Accounts receivable in May = $340,000 + $275,000
Accounts receivable in May = $615,000
Answer b.
Collection period is 45 days which means credit sale during March will be collected in April and April credit sale will be collected in May.
Cash receipts in May = Cash sales in May + Credit sales in
April
Cash receipts in May = $275,000 + $340,000
Cash receipts in May = $615,000
Accounts receivable in May = Credit sales in May
Accounts receivable in May = $275,000
jeff jeffy answered 6 months agoRelated Solutions
Sequoia Furniture Company’s sales over the past three months,half of which are for cash, were...
Sequoia Furniture Company’s sales over the past three months,
half of which are for cash, were as follows: March April May
$440,000 $690,000 $560,000 a. Assume that Sequoia’s collection
period is 60 days. What would be its cash receipts in May? What
would be its accounts receivable balance at the end of May? b. Now
assume that Sequoia’s collection period is 45 days. What would be
its cash receipts in May? What would be its accounts receivable
balance at the...
Sequoia Furniture Company’s sales over the past three months, half of which are for cash, were...
Sequoia Furniture Company’s sales over the past three months,
half of which are for cash, were as follows: March April May
$402,000 $652,000 $522,000 a. Assume that Sequoia’s collection
period is 60 days. What would be its cash receipts in May? What
would be its accounts receivable balance at the end of May? b. Now
assume that Sequoia’s collection period is 45 days. What would be
its cash receipts in May? What would be its accounts receivable
balance at the...
Sequoia Furniture Company’s sales over the past three months, half of which are for cash, were...
Sequoia Furniture Company’s sales over the past three months,
half of which are for cash, were as follows:
March $408,000 April $658,000 May $528,000
a. Assume that Sequoia’s collection period is 60 days. What
would be its cash receipts in May? What would be its accounts
receivable balance at the end of May?
- Cash Receipts: ?
- Accounts receivable balance:?
b. Now assume that Sequoia’s collection period is 45 days. What
would be its cash receipts in May? What...
Sequoia Furniture Company’s sales over the past three months, half of which are for cash, were...
Sequoia Furniture Company’s sales over the past three months,
half of which are for cash, were as follows:
March
April
May
$438,000
$688,000
$558,000
a. Assume that Sequoia’s collection period is 60 days. What
would be its cash receipts in May? What would be its accounts
receivable balance at the end of May?
b. Now assume that Sequoia’s collection period is 45 days. What
would be its cash receipts in May? What would be its accounts
receivable balance at the...
Over the past three decades about half of the public firms were regular dividend payers, while...
Over the past three decades about half of the public firms were
regular dividend payers, while the other half were not paying
dividends at all. Assuming wealth maximization of shareholders is a
primary objective of the management, explain: a) why some firms
choose to pay dividends consistently (give at least three possible
reasons); b) why other firms choose not to pay any dividends at all
(at least three reasons); c) why some other firms choose to combine
stock repurchases and...
A furniture store has maintained monthly sales records for the past 20 months, with the results...
A furniture store has maintained monthly sales records for the
past 20 months, with the results shown below.
Month
Sales
1
2360
2
1820
3
1760
4
1560
5
1950
6
1950
7
3360
8
1740
9
3780
10
2400
11
2160
12
2760
13
3570
14
2820
15
2800
16
1890
17
2500
18
3630
19
2530
20
3270
Assume you have determined there is NO SEASONALITY in this time
series. Therefore, you want to fit a linear trend...
A furniture store has maintained monthly sales records for the past 20 months, with the results...
A furniture store has maintained monthly sales records for the
past 20 months, with the results shown below.
Month
Sales
1
2360
2
1820
3
1760
4
1560
5
1950
6
1950
7
3360
8
1740
9
3780
10
2400
11
2160
12
2760
13
3570
14
2820
15
2800
16
1890
17
2500
18
3630
19
2530
20
3270
Assume you have determined there is NO SEASONALITY in this time
series. Therefore, you want to fit a linear trend...
The time series showing the sales of a particular product over the past 12 months is...
The time series showing the sales of a particular product over
the past 12 months is contained in the Excel Online file below.
Construct a spreadsheet to answer the following
questions.
Use a=0.2 to compute the exponential smoothing forecasts for the
time series (to 2 decimals).
Month
Time-Series
Value
Forecast
1
105
2
130
3
125
4
100
5
90
6
120
7
150
8
135
9
95
10
75
11
100
12
105
13
Use a smoothing constant of...
The following time series shows the sales of a particular product over the past 12 months....
The following time series shows the sales of a particular
product over the past 12 months.
Month
Sales
1
105
2
135
3
120
4
105
5
90
6
120
7
145
8
140
9
100
10
80
11
100
12
110
(a)
Construct a time series plot.
(b)
Use α = 0.3 to compute the exponential smoothing
forecasts for the time series. (Round your answers to two decimal
places.)
Month t
Time Series Value
Yt
Forecast
Ft
1
105...
The following time series shows the sales of a particular product over the past 12 months....
The following time series shows the sales of a particular
product over the past 12 months.
Month
Sales
1
105
2
135
3
120
4
105
5
90
6
120
7
145
8
140
9
100
10
80
11
100
12
110
(a)
Construct a time series plot.
A time series plot contains a series of 12 points connected by
line segments. The horizontal axis ranges from 0 to 13 and is
labeled: Month. The vertical axis ranges from 0...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1a) A sample of a new cleaning product, "Joe's Famous Bleach Cleaner," with a mass of...
- TRANSPARANT DATA ENCRYPTION TOPIC INTRODUCTION 150WORDS, DESCRIPTION 250 WORDS, CONCLUTION 150 WORDS USE OWN WORDS 500 WORDS....
- What do you consider an appropriate co-occurring diagnosis for an adolescent substance use disorder compared to...
- I have to do an simple-step Income statement and I'm stuck on what comes after the...
- Create a class named GroceryList. The attributes will be threeLinkedLists. One LinkedList holds double (currency) values,...
- .Variable created outside of function in the main script are available within the function. (Explain by...
- Consider two neighboring island countries called Arcadia and Dolorium. They each have 4 million labor hours...
ADVERTISEMENT