etproctorio.com/secured #lockdown abled: Midterm Exam One-time Supplement... Saved Jim Daniels Health Products has eight stores. The firm wants to expand by two more stores and needs a bank loan to do this. Mr. Hewitt, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. Following are actual and forecasted sales figures: Actual Forecast November December $320,000 January 340,000 February March Additional Information $400,000 April forecast 440,000 460,000 $450,000 Of the firm's sales, 40 percent are for cash and the remaining 60 percent are on credit. Of credit sales, 30 percent are paid in the month after sale and 70 percent are paid in the second month after the sale. Materials cost 30 percent of sales and are purchased and received each month in an amount sufficient to cover the current month's expected sales. Materials are paid for in the month they are received. Labour expense is 45 percent of sales and is paid in the month of sales. Selling and administrative expense is 6 percent of sales and is also paid in the month of sales. Overhead is $32,000 in cash per month; amortization expense is $10,600 per month. Taxes of $8,600 will be paid in January and dividends of $5,000 will be paid in March. Cash at the beginning of January is $92,000 and the minimum desired cash balance is $87,000. a. Prepare a schedule of monthly cash receipts for January, February and March. 13 Sales Credit sales Cash sales Collections in the month after credit sales Collections two months after credit sales Total cash receipts A Help Save & Exi Jim Daniels Health Products Cash Receipts Schedule November December January February March April $ $ $ $ $ $ A
etproctorio.com/secured #lockdown abled: Midterm Exam One-time Supplement... Saved Jim Daniels Health Products has eight stores. The firm wants to expand by two more stores and needs a bank loan to do this. Mr. Hewitt, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. Following are actual and forecasted sales figures: Actual Forecast November December $320,000 January 340,000 February March Additional Information $400,000 April forecast 440,000 460,000 $450,000 Of the firm's sales, 40 percent are for cash and the remaining 60 percent are on credit. Of credit sales, 30 percent are paid in the month after sale and 70 percent are paid in the second month after the sale. Materials cost 30 percent of sales and are purchased and received each month in an amount sufficient to cover the current month's expected sales. Materials are paid for in the month they are received. Labour expense is 45 percent of sales and is paid in the month of sales. Selling and administrative expense is 6 percent of sales and is also paid in the month of sales. Overhead is $32,000 in cash per month; amortization expense is $10,600 per month. Taxes of $8,600 will be paid in January and dividends of $5,000 will be paid in March. Cash at the beginning of January is $92,000 and the minimum desired cash balance is $87,000. a. Prepare a schedule of monthly cash receipts for January, February and March. 13 Sales Credit sales Cash sales Collections in the month after credit sales Collections two months after credit sales Total cash receipts A Help Save & Exi Jim Daniels Health Products Cash Receipts Schedule November December January February March April $ $ $ $ $ $ A
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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Jim Daniels Health Products has eight stores. The firm wants to expand by two more stores and needs a bank loan to do this. Mr.
Hewitt, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through
March. Following are actual and forecasted sales figures:
Actual
Forecast
November
December
$320,000 January
340,000 February
March
Additional Information
$400,000 April forecast
440,000
460,000
$450,000
Of the firm's sales, 40 percent are for cash and the remaining 60 percent are on credit. Of credit sales, 30 percent are paid in the
month after sale and 70 percent are paid in the second month after the sale. Materials cost 30 percent of sales and are purchased and
received each month in an amount sufficient to cover the current month's expected sales. Materials are paid for in the month they are
received. Labour expense is 45 percent of sales and is paid in the month of sales. Selling and administrative expense is 6 percent of
sales and is also paid in the month of sales. Overhead is $32,000 in cash per month; amortization expense is $10,600 per month.
Taxes of $8,600 will be paid in January and dividends of $5,000 will be paid in March. Cash at the beginning of January is $92,000
and the minimum desired cash balance is $87,000.
a. Prepare a schedule of monthly cash receipts for January, February and March.
13
Sales
Credit sales
Cash sales
Collections in the month after credit sales
Collections two months after credit sales
Total cash receipts
A
Help
Save & Exi
Jim Daniels Health Products
Cash Receipts Schedule
November
December
January
February
March
April
$
$
$
$
$
$
A
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