2 You currently have a cash balance of $140,000, receivables of $220,000 and payables of $90,000. Average days in receivables is 30 and average days in payables is 42. You typically order 50% of next quarter's predicted sales in raw materials which is your variable cost. Salaries and other related costs typically amount to 20% of your current period sales. Last year's sales were as detailed below by quarter. You expect an increase of 5% year on year on last year's sales. Q1 400,000 Q2 410,000 Q3 430,000 Create a cashflow prediction by quarter for the next four quarters. Q4 400,000

2 You currently have a cash balance of $140,000, receivables of $220,000 and payables of $90,000. Average days in receivables is 30 and average days in payables is 42. You typically order 50% of next quarter's predicted sales in raw materials which is your variable cost. Salaries and other related costs typically amount to 20% of your current period sales. Last year's sales were as detailed below by quarter. You expect an increase of 5% year on year on last year's sales. Q1 400,000 Q2 410,000 Q3 430,000 Create a cashflow prediction by quarter for the next four quarters. Q4 400,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

2 You currently have a cash balance of $140,000, receivables of $220,000 and payables
of $90,000. Average days in receivables is 30 and average days in payables is 42. You
typically order 50% of next quarter's predicted sales in raw materials which is your
variable cost. Salaries and other related costs typically amount to 20% of your current
period sales. Last year's sales were as detailed below by quarter. You expect an
increase of 5% year on year on last year's sales.
Q1
400,000
02
410,000
Q3
430,000
Create a cashflow prediction by quarter for the next four quarters.
Q4
400,000

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