Calculating Payments Marshall plc's purchases from suppliers in a quarter are equal to75 per cent of the next quarter's forecast sales. The payables period is 60 days. Wages,taxes and other expenses are 20 per cent of sales, and interest and dividends are £60 perquarter. No capital expenditures are planned.Here are the projected quarterly sales:Sales (£)Q1750Q2920Q3Q4890790Sales for the first quarter of the following year are projected at £970. Calculate the com-pany's cash outlays by completing the following:Payment of accountsWages, taxes, other expensesLong-term financing expenses.(interest and dividends)TotalQ1Q2Q3Q4

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Answered: Calculating Payments Marshall plc's…

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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The MacDonald Corporation’s purchases from suppliers in a quarter are equal to 60 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 40 percent of sales, and interest and dividends are $124 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 Q4 Sales $1,230 $1,380 $1,470 $1,680 Sales for the first quarter of the following year are projected at $1,350. Calculate the company’s cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Suppose that a company borrows $100,000 from investment pool at 14% compounded quarterly over 3 years. If the average quarterly general inflation rate is expected to be 0.35%, determine the equivalent equal quarterly payment series in constant dollars.
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Wontaby Ltd. is extending its credit terms from 30 to 45 days. Sales are expected to increase from $4.90 million to $6.00 million as a result. Wontaby finances short-term assets at the bank at a cost of 10 percent annually. Calculate the additional annual financing cost of this change in credit terms. (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to the nearest whole dollar. Enter answer in whole dollar not in million.) Annual financing cost $
Forecasted cash receipts and expenditure for the period August to October are as follows: Cash Receipts Expenditure $ $ 60,000 58,000 July August September October 54000 68,000 90,000 30,000 44,000 Additional information provided: ✓ Expenditure for the period July to October includes monthly depreciation of $5,000. ✓ Payment for the cash related expenditure would be 40% in the month of purchase, the balance being paid the following month. The company intends to sell equipment valued at $25,000 in September. Insurance of $25,000 is payable in December. Opening cash balance as at August 1, $18,800. Required: Prepare a monthly Cash Budget for the period August to October 2021.
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The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 60 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 40 percent of sales, and interest and dividends are $114 per quarter. No capital expenditures are planned. Projected quarterly sales are: Sales Q1 $ 1,500 Q2 Q3 04 $ 1,650 $ 1,710 $ 1,950 Sales for the first quarter of the following year are projected at $1,620. Calculate the company's cash outlays by completing the following: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q1 Q2 Q3 Check my work Q4
The Martin Company expects its total sales in the first quarter of 2024 will be $200,000 . Martin estimates that , in each subsequent quarter , total sales will increase by 10 % of the sales in the immediately preceding quarter . Martin estimates that 60 % of each quarter's sales will be on account , and 40 % will be for cash . Of the amount on account , 75% will be collected in the same quarter the sale occurred , and 25 % will be collected in the following quarter . Assume Martin will have no accounts receivable at the beginning of 2024. The balance in the Accounts Receivable account at the end of the third quarter is expected to be: $42,000 $ 30,000 $36,300 $ 60,000 $108,900
Superstar Berhad reported sales of RM70,000 in May and RM80,000 in June. The forecast sales for July, August and September are RM90,000, RM100,000, and RM110,000, respectively. The beginning cash balance on July 1 is RM3,000 and the firm wishes to maintain a minimum cash balance of RM5,000 every month. The total long-term liabilities of the company is RM25,000. Given the following data, prepare a cash budget for the months of July, August and September. The firm makes 20% of sales for cash, 60% are collected in the next month, and the remaining 20% are collected in the second month following sale. The firm receives other income of RM 2,000 per month. The firm’s actual or expected purchases, all made for cash, are RM65,000, RM70,000, and RM85,000 for the months of July through September, respectively. Rent is RM5,500 per month. Wages and salaries are 10% of the previous month’s sales. The net income is RM30,000. Cash dividends is 20% of the net income and will be paid in August. The…
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Receivables Investment Snider Industries sells on terms of 2/10, net 25. Total sales for the year are $500,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 30 days after their purchases. Assume a 365-day year. What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number. days What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 25th day? Do not round intermediate calculations. Round your answer to the nearest dollar. $

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