Homework Help is Here – Start Your Trial Now!
Business
Finance
50,000 June 56,000 July 45,000 August es in January and February were $53,000 and $52,000 respectively. ence has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are ted in the following month, and 20 percent are collected two months after sale. pare a monthly cash receipts schedule for the firm for March through August. lections of current sales lections of prior month's sales lections of sales 2 months earlier al cash receipts $ 54,000 62,000 64,000 collected pected to be collected Amount 33100 $ $ 297908 January 53000 $ February 52000 Ed's Waterbeds Cash Receipts Schedule $ March 50000 15000 20800 10600 S 46400 0 0 0 0 $ $ April 56000 16800 20000 10400 47200 the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of ust? How much of this is expected to be collected later? › › S May 45000 13500 22400 10000 45900 3 June 54000 16200 18000 11200 S 45400

50,000 June 56,000 July 45,000 August es in January and February were $53,000 and $52,000 respectively. ence has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are ted in the following month, and 20 percent are collected two months after sale. pare a monthly cash receipts schedule for the firm for March through August. lections of current sales lections of prior month's sales lections of sales 2 months earlier al cash receipts $ 54,000 62,000 64,000 collected pected to be collected Amount 33100 $ $ 297908 January 53000 $ February 52000 Ed's Waterbeds Cash Receipts Schedule $ March 50000 15000 20800 10600 S 46400 0 0 0 0 $ $ April 56000 16800 20000 10400 47200 the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of ust? How much of this is expected to be collected later? › › S May 45000 13500 22400 10000 45900 3 June 54000 16200 18000 11200 S 45400

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
icon
Concept explainers
Question

only part b

 

Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March April May Sales $ 50,000 June 56,000 July 45,000 August Sales in January and February were $53,000 and $52,000 respectively. Experience has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August. Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier. Total cash receipts Uncollected Expected to be collected. $ $ 54,000 62,000 64,000 Amount 33100 $ 297900 $ January 53000 $ Ed's Waterbeds Cash Receipts Schedule March 50000 February 52000 ✔ $ $ 20800 ✓ 15000 ✔ 10600 * « « * 46400 ✪ $ S April 56000 16800 b. Of the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of August? How much of this is expected to be collected later? 20000 10400 47200 ✓ $ $ May 45000 13500 22400 10000 45900 › › › › $ June 54000 16200 18000 11200 › › › › $ 45400 ✔ July $ 62000 18600 21600 9000 0000 S 49200 → $ Heron August 64000 19200 24800 10800 $ 54800 4300 3
Transcribed Image Text:Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March April May Sales $ 50,000 June 56,000 July 45,000 August Sales in January and February were $53,000 and $52,000 respectively. Experience has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August. Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier. Total cash receipts Uncollected Expected to be collected. $ $ 54,000 62,000 64,000 Amount 33100 $ 297900 $ January 53000 $ Ed's Waterbeds Cash Receipts Schedule March 50000 February 52000 ✔ $ $ 20800 ✓ 15000 ✔ 10600 * « « * 46400 ✪ $ S April 56000 16800 b. Of the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of August? How much of this is expected to be collected later? 20000 10400 47200 ✓ $ $ May 45000 13500 22400 10000 45900 › › › › $ June 54000 16200 18000 11200 › › › › $ 45400 ✔ July $ 62000 18600 21600 9000 0000 S 49200 → $ Heron August 64000 19200 24800 10800 $ 54800 4300 3
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Receivables Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS