Question
In: Finance
Cash Budgeting The sales budget for your company in the coming year is based on a...
Cash Budgeting
The sales budget for your company in the coming year is based on a
quarterly growth rate of 10 percent, with the first-quarter sales
projection at $165 million. In addition to this basic trend, the
seasonal adjustments for the four quarters are, in millions, 0,
-$12, –$6, and $18, respectively. Generally, 50 percent of the
sales can be collected within the quarter and 45 percent in the
following quarter; the rest of the sales are bad debt. The bad
debts are written off in the second quarter after the sales are
made. The beginning accounts receivable balance is $84 million.
Assuming all sales are on credit, compute the cash collections from
sales for each quarter.
Don't round off until you get to the end.
Solutions
Expert Solution
AS NOTHING WAS MENTIONED, ANSWERS ARE IN MILLIONS OF DOLLARS. ANY CHANGE NEEDED, LET ME KNOW.
jeff jeffy answered 6 months agoRelated Solutions
The sales budget for your company in the coming year is based on a quarterly growth...
The sales budget for your company in the coming year is based on
a quarterly growth rate of 10 percent with the first-quarter sales
projection at $225.9 million. In addition to this basic trend, the
seasonal adjustments for the four quarters are 0, −$16.9, −$8.9,
and $21.9 million, respectively. Generally, 50 percent of the sales
can be collected within the quarter and 45 percent in the following
quarter; the rest of the sales are bad debt. The bad debts are...
The sales budget for your company in the coming year is based on a quarterly growth...
The sales budget for your company in the coming year is based on
a quarterly growth rate of 10 percent with the first-quarter sales
projection at $165 million. In addition to this basic trend, the
seasonal adjustments for the four quarters are 0, −$12, −$6, and
$18 million, respectively. Generally, 50 percent of the sales can
be collected within the quarter and 45 percent in the following
quarter; the rest of the sales are bad debt. The bad debts are...
John Johnson has been working on Swifty Paints' cash budget for the coming year. Based on...
John Johnson has been working on Swifty Paints' cash budget for
the coming year. Based on his projections for March, the beginning
cash balance will be $45,700; cash collections will be $600,000;
and cash disbursements will be $634,000. Swifty Paints desires to
maintain a $43,000 minimum cash balance. The company has a 6% open
line of credit with its bank, which provides short-term borrowings
in $500 increments. All borrowings are made at the beginning of the
month, and all repayments...
The Hale Company is currently working on its cash budget for the coming year. The following...
The Hale Company is currently working on its cash budget for the
coming year. The following information is available:
Projected sales for the coming year:
Month
Projected Sales
January
$850,000
February
750,000
March
730,000
April
850,000
May
830,000
June
750,000
July
900,000
The collection history of the Hale Company has been as
follows:
20% of sales are collected in the month of the sale.
60% of the sales are collected in the month following the
sale.
12% of the sales...
Todd Enterprises is preparing a cash budget for the second quarter of the coming year. The...
Todd Enterprises is preparing a cash budget for the
second quarter of the coming year. The following data have been
forecasted:
April
May
Sales …………………………………………………………
$150,000
$157,500
Merchandise purchases ……………………………
107,000
112,400
Operating expenses:
Payroll …………………………………………………
13,600
14,280
Advertising …………………………………………..
5,400
5,700
Rent ……………………………………………………..
2,500
2,500
Depreciation …………………………………………
7,500
7,500
End of April balances:
Cash ………………………………………………………
30,000
Bank loan payable …………………………………
26,000
Additional data:
(1) Sales are 40% cash and 60% credit. The collection
pattern for credit sales is 50%...
ZYX Corporation is preparing a cash budget for January of the coming year. The following data...
ZYX Corporation is preparing a cash budget for January
of the coming year. The following data have been
forecasted:
January
February
Sales
750,000
800,000
Purchases
450,000
480,000
Operating expenses
Payroll
146,800
167,000
Advertising
52,700
62,800
Rent
8,750
8,750
Depreciation
23,750
23,750
End-of-December balances
Cash
120,000
Accounts payable
250,000
Bank loan
480,000
Sales are 40% cash. The term of credit sales is 2/10,
n/30.
The collection pattern for credit sales is 75% in the
month following the month of sale (of...
XYZ Corporation is preparing a cash budget for January of the coming year. The following data...
XYZ Corporation is preparing a cash budget for January of the
coming year. The following data have been forecasted:
January February
Sales 750,000 800000
Purchases 450,000 480000
Operating expenses:
Payroll 146,800 167400
Advertising 52,700 62800
Rent 8,750 8750
Depreciation 23,750 23,750
End-of-December balances:
Cash 120,000
Accounts payable 200,000
Bank loan 480,000
Additional data:
Sales are 40% cash. The term of credit sales is 2/10, n/30. The
collection pattern for credit sales is 75% in the month following
the month of...
XYZ Corporation is preparing a cash budget for January of the coming year. The following data...
XYZ Corporation is preparing a cash budget for January of the
coming year. The following data have been forecasted:
January February
Sales 750,000 800000
Purchases 450,000 480000
Operating expenses:
Payroll 146,800 167400
Advertising 52,700 62800
Rent 8,750 8750
Depreciation 23,750 23,750
End-of-December balances:
Cash 120,000
Accounts payable 200,000
Bank loan 480,000
Additional data:
Sales are 40% cash. The term of credit sales is 2/10, n/30. The
collection pattern for credit sales is 75% in the month following
the month of...
Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020)....
Thome and Crede, CPAs, are preparing their service revenue
(sales) budget for the coming year (2020). The practice is divided
into three departments: auditing, tax, and consulting. Billable
hours for each department, by quarter, are provided
below.
Department
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Auditing
2,500
1,730
2,400
2,690
Tax
3,250
2,750
2,400
2,720
Consulting
1,780
1,780
1,780
1,780
Average hourly billing rates are auditing $85, tax $94, and
consulting $105.
Prepare the service revenue (sales) budget for...
Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020)....
Thome and Crede, CPAs, are preparing their service revenue
(sales) budget for the coming year (2020). The practice is divided
into three departments: auditing, tax, and consulting. Billable
hours for each department, by quarter, are provided
below.
Department
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Auditing
2,480
1,920
2,300
2,570
Tax
3,170
2,510
2,300
2,640
Consulting
1,890
1,890
1,890
1,890
Average hourly billing rates are auditing $81, tax $93, and
consulting $102.
Prepare the service revenue (sales) budget for...
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