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 1 year ago
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