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 $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 would be its accounts receivable balance at the end of May?
- Cash Receipts:?
- Accounts receivable balance:?
Solutions
Expert Solution
| 60 days collection period mean credit sales for March would be paid in May | |||||||
| March | April | May | Total | ||||
| Sales | $408,000 | $658,000 | $528,000 | $1,594,000 | |||
| Cash sales (50%) | $204,000 | $329,000 | $264,000 | $797,000 | |||
| Credit sales collection | $204,000 | $204,000 | |||||
| 408000*50% | |||||||
| Total cash collection | $204,000 | $329,000 | $468,000 | $1,001,000 | |||
| Accounts receivable | $204,000 | $533,000 | $593,000 | ||||
| Thus, total cash collection for May is $468,000 and accounts receivable balance is $593,000 | |||||||
| 45 days collection period mean payment for March would be paid in mid April | |||||||
| March | April | May | Total | ||||
| Sales | $408,000 | $658,000 | $528,000 | $1,594,000 | |||
| Cash sales (50%) | $204,000 | $329,000 | $264,000 | $797,000 | |||
| Credit sales collection | $204,000 | $329,000 | $533,000 | ||||
| 408000*50% | 658000*50% | ||||||
| Total cash collection | $204,000 | $533,000 | $593,000 | $1,330,000 | |||
| Accounts receivable | $204,000 | $329,000 | $264,000 | ||||
| Thus, total cash collection for May would be $593,000 and accounts receivable balance would be $264,000 | |||||||
jeff jeffy answered 1 year agoRelated Solutions
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May
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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
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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.
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line segments. The horizontal axis ranges from 0 to 13 and is
labeled: Month. The vertical axis ranges from 0...
The following time series shows the sales of a particular product over the past 12 months....
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1. Using the three-month moving average, what is the Mean
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(Round your answer to 2 decimal places. Negative values
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Month
Sale ($1,000s)
Total 3 Months
3 Months Avg.
January
11
February
14
41
13.66666667
March
16
40
13.33333333
April
10
41
13.66666667
May
15
42
14
June
17
43
14.33333333
July
11
42
14
August
14
42
14
September
17
43
14.33333333
October
12
43
14.33333333
November
14
42
14
December
16
41
13.66666667
January
11...
The following time series shows the sales of a particular product over the past 12 months....
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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
Use α = 0.5 to compute the exponential smoothing
forecasts for the time series. (Round your answers to two decimal
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Month t
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Yt
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1
105
2
135
3
120
4
105
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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
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Month
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1
105
2
135
3
120
4
105
5
90
6
120
7
145
8
140
9
100
10
80
11
100
12
110
(b)
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Month t
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Yt
Forecast
Ft
1
105
2
135
3
120
4
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