b. Prepare a schedule of monthly cash payments for June through September. Note: Input all amounts as positive. Leave no cells blank be certain to enter O wherever required. Materials purchases Materials: One month after purchase Materials: Two months after purchase Labor expense Overhead expense Interest payments Dividend payments Tax payments Capital outlay Total payments April Archer Electronics Cash Payments Schedule May June $ EA O $ GA July 0 EA August 0 September $
b. Prepare a schedule of monthly cash payments for June through September. Note: Input all amounts as positive. Leave no cells blank be certain to enter O wherever required. Materials purchases Materials: One month after purchase Materials: Two months after purchase Labor expense Overhead expense Interest payments Dividend payments Tax payments Capital outlay Total payments April Archer Electronics Cash Payments Schedule May June $ EA O $ GA July 0 EA August 0 September $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Transcribed Image Text:Archer Electronics Company's actual sales and purchases for April and May are shown here along with forecast sales and purchases
for June through September:
April (actual)
May (actual)
June (forecast)
July (forecast)
August (forecast)
September (forecast)
Sales
$ 370,000
350,000
325,000
325,000
340,000
380,000
Purchases
$ 155,000
145,000
145,000
205,000
225,000
220,000
The company makes 20 percent of its sales for cash and 80 percent on credit. Of the credit sales, 50 percent are collected in the
month after the sale and 50 percent are collected two months later. Archer pays for 20 percent of its purchases in the month after
purchase and 80 percent two months after.
Labor expense equals 15 percent of the current month's sales. Overhead expense equals $12,500 per month. Interest payments of
$32,500 are due in June and September. A cash dividend of $52,500 is scheduled to be paid in June. Tax payments of $25,500 are
due in June and September. There is a scheduled capital outlay of $350,000 in September.
Archer Electronics' ending cash balance in May is $22,500. The minimum desired cash balance is $10,500.
Transcribed Image Text:b. Prepare a schedule of monthly cash payments for June through September.
Note: Input all amounts as positive. Leave no cells blank be certain to enter O wherever required.
Materials purchases
Materials: One month after purchase
Materials: Two months after purchase
Labor expense
Overhead expense
Interest payments
Dividend payments
Tax payments
Capital outlay
Total payments
April
Archer Electronics
Cash Payments Schedule
May
June
July
0 $
August
0
September
$
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