Question

In: Finance

Paymore Products places orders for goods equal to 75% of its sales forecast in the next...

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table.

Quarter in Coming Year Following Year
First Second Third Fourth First Quarter
Sales forecast $444 $351 $349 $397 $397

On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $349. Also, one third of the orders are paid for in the current month and then two thirds of the next quarter's orders are paid in advance. Assuming that Paymore’s labor and administrative expenses are $78 per quarter and that interest on long-term debt is $53 per quarter, work out the net cash flow for Paymore for the coming year using the below table. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

ONLY NEED PART WITH QUESTION MARK

Quarter
First Second Third Fourth
Sources of cash:
Collections on accounts receivable $381 $413 $350 $365
Uses of cash:
Payments of accounts payable ? 262 ? 298
Labor and administrative expenses 78 78 78 78
Interest on long-term debt 53 53 53 53
Total uses of cash $131 $393 $131 $429
Net cash inflow/(outflow) $250 $20 $219 $(64)   

Solutions

Expert Solution

Calculation of Net Cash flows:

Working Notes :

1) Accounts receivable Collection

Formulas:

2)Payables Payments

Formulas:


Related Solutions

Paymore Products places orders for goods equal to 75% of its sales forecast in the next...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table. Quarter in Coming Year Following Year First Second Third Fourth First Quarter Sales forecast $428 $345 $347 $395 $395 On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $347. Also,...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table. Quarter in Coming Year Following Year First Second Third Fourth First Quarter Sales forecast $420 $342 $346 $394 $394 On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $346. Also,...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows: Quarter in Coming Year Following Year First Second Third Fourth First Quarter Sales forecast $580 $520 $460 $520 $520 What is the forecast for Paymore’s cash receipts in each quarter of the coming year? On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table. Quarter in Coming Year Following Year First Second Third Fourth First Quarter Sales forecast $372 $360 $336 $384 $384 On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $336. Also,...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table. Quarter in Coming Year Following Year First Second Third Fourth First Quarter Sales forecast $372 $360 $336 $384 $384 On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $336. Also,...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the table below. Quarter in Coming Year Following Year First Second Third Fourth First Quarter Sales forecast $396 $333 $343 $391 $391 Paymore’s labor and administrative expenses are $72 per quarter and interest on long-term debt is $47 per quarter. Suppose that Paymore’s cash balance at the start of the first quarter is $40 and its minimum acceptable...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next...
Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table. Quarter in Coming Year Following Year First Second Third Fourth First Quarter Sales forecast $388 $360 $342 $390 $390 Paymore’s labor and administrative expenses are $71 per quarter and interest on long-term debt is $46 per quarter. Paymore’s cash balance at the start of the first quarter is $40 and its minimum acceptable cash balance...
Given the forecast and booked orders shown in the? table, and a beginning inventory of? 75,...
Given the forecast and booked orders shown in the? table, and a beginning inventory of? 75, what is the available to promise inventory for period? 4? The company operates with a lot size of 50. Period 1 2 3 4 Forecasted Demand 500 450 400 600 Booked Orders 520 400 325 450 Projected Ending Inventory Master Production Schedule Available to Promise
The company PR Products Corp. estimates that its quarterly sales for the next year are as...
The company PR Products Corp. estimates that its quarterly sales for the next year are as follows: (units) The price per unit is $ 70 1. 1 Quarter 30,000 units 2. 2 Quarter 50,000 3. 3 Quarter 60,000 4. 4 Quarter 40,000 Accounts receivable as of December 31 are $ 90,000. The company estimates that sales are charged 60% in the quarter they are made and 40% in the following quarter. Finished Goods' desired ending inventory represents 20% of next...
Bengal Co. provides the following sales forecast for the next three months:
Bengal Co. provides the following sales forecast for the next three months: The company wants to end each month with ending finished goods inventory equal to 25% of the next month sales. Finished goods inventory on June 30 is 1, 250 units. The budgeted production units for August are 6, 950 units. 4, 310 units. 7, 090 units. 5, 565 units. 4,135 units.  
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT