Question

In: Accounting

Prepare a quarterly schedule of cash receipts budget for PEPSI Company for the year ended December...

  1. Prepare a quarterly schedule of cash receipts budget for PEPSI Company for the year ended December 31, 2021, including the following schedules:
    1. Sales Budget (ALREADY DONE) & Schedule of Cash Receipts (NEED HELP WITH THIS)
Pepsi Company
Sales Budget
For Year ended December 31,2021
Q1 Q2 Q3 Q4 Total
Budgeted Sales in units 4,500 16,500 6,000 3,000 30,000
Selling Price per unit $290 $290.00 $290.00 $290.00 $290
Total budgeted sales $1,305,000 $4,785,000.00 $1,740,000.00 $870,000.00 $8,700,000

Relevant Info

  1. Dougs sales forecast consisted of these few lines:
  2. For the year ended December 31, 2020: 26,000 units at $290.00 eac
  3. For the year ended December 31, 2021: 30,000 units at $290.00 each
  4. For the year ended December 31, 2022: 33,000 units at $290.00 each

History has shown that sales are seasonal, with 55% of sales occurring in the second quarter, 20% in the third quarter, 15% in the first quarter, and the remaining 10% in the last quarter.

Sales are on a cash and credit basis, with 40% collected in cash. 60% of Credit sales are collected during the quarter of the sale, and 36% of credit sales are collected in the following quarter. The remainder are uncollectible.

Cash

$     97,625

Accounts receivable

162,864

Inventory-raw materials

76,950

Inventory-finished goods (450 units)

106,142

Prepaid insurance

            45,000

Prepaid prop. tax

            16,000

Capital assets

$1,695,000

Less: Acc. Dep.

      820,000

875,000

$ 1,379,581

Accounts payable

$ 58,077

Income tax payable

         32,500

Capital stock

    800,000

Retained earnings

489,004

$ 1,379,581

Will provide more info if needed. Thanks

Solutions

Expert Solution

PEPSI Company Calculation
Schedule of cash receipts
Req 1 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4
Cash sales       522,000    1,435,500       522,000         261,000    2,740,500 1305000*40% 4785000*40% 1740000*40% 870000*40%
Credit sales collected during quarter of sale       469,800    1,722,600       626,400         313,200    3,132,000 1305000*60%*60% 4785000*60%*60% 1740000*60%*60% 870000*60%*60%
Credit sales collected in following quarter       162,864       281,880    1,033,560         375,840    1,854,144 As per balance sheet 1305000*60%*36% 4785000*60%*36% 1740000*60%*36%
Total cash collections    1,154,664    3,439,980    2,181,960         950,040    7,726,644

ekkarill92 answered 7 months ago
Next > < Previous

Related Solutions

MILESTONE I: Complete the Cash Budget (Cash Receipts Schedule & Cash Payments Schedule) of Archer Electronics...
MILESTONE I: Complete the Cash Budget (Cash Receipts Schedule & Cash Payments Schedule) of Archer Electronics Company Archer Electronics Company's actual sales and purchases for April and May are shown here along with forecast sales and purchases for June through September: The company makes 20 percent of its sales for cash and 80 percent on credit. Of the credit sales, 50 percent are collected in the month after the sale and 50 percent are collected two months later. Archer pays...
Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For...
Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,610,000 Quarter 2 5,260,000 Quarter 3 6,510,000 Quarter 4 8,430,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter...
Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For...
Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,770,000 Quarter 2 6,000,000 Quarter 3 5,710,000 Quarter 4 8,010,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter...
Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For...
Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,690,000 Quarter 2 5,680,000 Quarter 3 1,820,000 Quarter 4 8,580,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter...
Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For...
Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,780,000 Quarter 2 5,270,000 Quarter 3 4,640,000 Quarter 4 7,620,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter...
Prepare the financing section of the statement of cash flows for the year ended December 31,...
Prepare the financing section of the statement of cash flows for the year ended December 31, 2018. 13) Dakota Telescopes Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement:                                    Dakota Telescopes Company                                              Income Statement                                  Year Ended December 31, 2019 Sales Revenue                                                   $275,000 Interest Revenue                                                     2,600 Total Revenues                                                                                   $277,600 Cost of Goods Sold                                             135,000 Salary Expense                                                      66,500 Depreciation Expense                                          32,000 Other Operating Expenses                                 35,900 Interest Expense                                                      2,400 Income Tax...
Use the schedule for cash receipts and the schedule for cash payments provided to complete a...
Use the schedule for cash receipts and the schedule for cash payments provided to complete a cash budget for M.K.H.M., Inc. Additional Information: M.K.H.M.’s beginning cash balance is $5,000 and M.K.H.M. desires to maintain a minimum ending cash balance of $5,000. M.K.H.M. borrows cash as needed at the beginning of each month in increments of $1,000 and repays the amounts borrowed in increments of $1,000 at the beginning of months when excess cash is available. The interest rates on amounts...
Cornerstone Exercise 8.11 (Algorithmic) Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and...
Cornerstone Exercise 8.11 (Algorithmic) Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,670,000 Quarter 2 5,230,000 Quarter 3 2,850,000 Quarter 4 7,970,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected...
Cornerstone Exercise 8.11 (Algorithmic) Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and...
Cornerstone Exercise 8.11 (Algorithmic) Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,700,000 Quarter 2 5,230,000 Quarter 3 6,680,000 Quarter 4 8,590,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected...
Cornerstone Exercise 8.11 (Algorithmic) Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and...
Cornerstone Exercise 8.11 (Algorithmic) Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,700,000 Quarter 2 5,230,000 Quarter 3 6,680,000 Quarter 4 8,590,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT