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
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
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only part b
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
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