a) Prepare a schedule of cash receipts for March, April, May, June, July and August 70 percent of the firm's sales are on credit. Past experience shows that 45 percent of accounts receivable are collected in the month after sale, and the remainder are collected in the second month after sale. Eddie's pays its payments in the following month Eddie's had a cash balance of $2,000 on March 1, which is also its minimum required cash balance. There is an outstanding loan of $2,000 on March 1 b) Prepare a cash budget for March, April, May, June, July and August

a) Prepare a schedule of cash receipts for March, April, May, June, July and August 70 percent of the firm's sales are on credit. Past experience shows that 45 percent of accounts receivable are collected in the month after sale, and the remainder are collected in the second month after sale. Eddie's pays its payments in the following month Eddie's had a cash balance of $2,000 on March 1, which is also its minimum required cash balance. There is an outstanding loan of $2,000 on March 1 b) Prepare a cash budget for March, April, May, June, July and August

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

See similar textbooks

Similar questions

Walc Factory is a manufacturer that makes all sales on 30-day credit terms. Annual sales areapproximately $20 million. At the end of 2010, accounts receivable were presented in the company’sbalance sheet as follows:Accounts receivable from clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,800,000Less: Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000During 2011, $115,000 of specific accounts receivable were written off as uncollectible. Of theseaccounts written off, receivables totaling $9,000 were subsequently collected. At the end of 2011,an aging of accounts receivable indicated a need for a $75,000 allowance to cover possible failureto collect the accounts currently outstanding.Walc Factory makes adjusting entries for uncollectible accounts only at year-end.Instructionsa. Prepare the following general journal entries:1. One entry to summarize all accounts written off against the Allowance for…
1. A company has a sales plan for 2020 based on the estimated end of the month as follows: Month Total sales July Rp 28.000,00 August 35.000,00 September 42.000,00 Payment terms are set: 3/20/net 30. Based on the experience of the customer's payment method as follows: 60% of sales every month is collected at 20 days after the month of pend. 30% accumulated in the time after 20 days in the same month, i.e. in the first month after the month of Dec. 10% collected in the second month after the month of Dec. Required: prepare a schedule/budget for collection of receivables (receivables collection budget)
What is the correct answer? A,B,C or D?
finance
Hh1.
Assume the Day sales outstanding (DSO) 36 days, Sales revenues $500,000, calculation based on 360 day per year. Calculate account receivables (A/R)? O a. $100,000 O b. $150,000 O c. $50,000 d. $250,000
Bluewater, Inc. has the following estimated quarterly sales for next year. The accounts receivable period is 60 days. What is the expected accounts receivable balance to the nearest dollar at the end of the third quarter? Assume that each month has 30 days. Q1 Q2 Q3 Q4 Sales $1,850 $1,625 $1,345 $1,200 Question 4 Answer a. $ 448 b. $ 897 c. $ 1,532 d. $ 673 e. $1,485
32. If Adel allows a 2 percent cash discount if collected in the month of sale, it isexpected that 60 percent will be collected in the month of sale and the balance in the month following. How much will be collected from customers in December under the newpercentages?a. P17,500b. P18,500c. P16,290d. P20,000
Hi, please answer the attached question BR,
Bingo Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cash sales. 30% pays on the 20th day and take discounts while the remaining customers always pay on time. 1. What is the average amount of accounts receivable? (Use 360-day year)
9. 測 3. ABC Co. had the following purchases on account: September August 65% of the month's purchases are paid in the month of purchase. The remainder is paid in the month following purchase, How much will the cash payments for purchases be in August? July 000'008$ 43°F SU prt sc 144 114 fg *- V. 0. 5. 6.
Problem Solving. Raymar Alison Trading has the following transactions during the fiscal year 2021. Cash sales 100,0000. Credit Sales 200,000. Total Sales 300,000. Cost of Goods Sold 150,000. Gross Margin 150,000. Beg. Accounts Receivable 25,000. End. Accounts Receivable 15,000. Beg. Inventory 35,000. End. Inventory 25,000. Total Expenses 50,000. 30. What is Return on Income? 16.67% 33.33% 50.00% 66.67%