Cash receipts: consultancy LO 9.7 BlueSky Web is a leading fashion graphic design and web development consultancy, servicing a number of well-known Australian and New Zealand organisations. Historically, revenues from fees invoiced have generally been collected according to the following pattern: 70 per cent collected in the same month the invoice is issued 25 per cent collected in the first month after the invoice is issued 4 per cent collected in the second month after the invoice is issued 1 per cent becomes uncollectable. The fee revenues have been budgeted for the last seven months of the year, as shown below: June $367 500 July 450 000 August 525 500 September 800 000 October 900 000 November 500 000 December 850 000 Required Build an Excel spreadsheet to solve the following requirements: Calculate the estimated total cash receipts for October from invoiced fees. Calculate the estimated total cash receipts for the December quarter from invoiced fees. Use your spreadsheet to demonstrate how your answers for requirements 1 and 2 will change if June and July fee invoices are $525 000 and $637 500, respectively. How could the finance manager of BlueSky Web use the information from this exercise to help with planning operations for the month of December?
Cash receipts: consultancy LO 9.7 BlueSky Web is a leading fashion graphic design and web development consultancy, servicing a number of well-known Australian and New Zealand organisations. Historically, revenues from fees invoiced have generally been collected according to the following pattern: 70 per cent collected in the same month the invoice is issued 25 per cent collected in the first month after the invoice is issued 4 per cent collected in the second month after the invoice is issued 1 per cent becomes uncollectable. The fee revenues have been budgeted for the last seven months of the year, as shown below: June $367 500 July 450 000 August 525 500 September 800 000 October 900 000 November 500 000 December 850 000 Required Build an Excel spreadsheet to solve the following requirements: Calculate the estimated total cash receipts for October from invoiced fees. Calculate the estimated total cash receipts for the December quarter from invoiced fees. Use your spreadsheet to demonstrate how your answers for requirements 1 and 2 will change if June and July fee invoices are $525 000 and $637 500, respectively. How could the finance manager of BlueSky Web use the information from this exercise to help with planning operations for the month of December?
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
Related questions
Question
H1.
Account
Transcribed Image Text:Cash receipts: consultancy LO 9.7 BlueSky Web is a leading fashion graphic design and web development consultancy,
servicing a number of well-known Australian and New Zealand organisations. Historically, revenues from fees invoiced
have generally been collected according to the following pattern: 70 per cent collected in the same month the invoice is
issued 25 per cent collected in the first month after the invoice is issued 4 per cent collected in the second month after the
invoice is issued 1 per cent becomes uncollectable. The fee revenues have been budgeted for the last seven months of
the year, as shown below:
June $367 500
July 450 000
August 525 500
September 800 000
October 900 000
November 500 000
December 850 000
Required Build an Excel spreadsheet to solve the following requirements:
Calculate the estimated total cash receipts for October from invoiced fees.
Calculate the estimated total cash receipts for the December quarter from invoiced fees.
Use your spreadsheet to demonstrate how your answers for requirements 1 and 2 will change if June and July fee
invoices are $525 000 and $637 500, respectively.
How could the finance manager of BlueSky Web use the information from this exercise to help with planning operations
for the month of December?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
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
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
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…
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