Graham Potato Company has projected sales of $10,200 in September, $13,500 in October, $20.200 in November $16.200 in December of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining d percent are paid two months after. Determine collections for November and December Also assume Graham's cash payments for November and December are $17000 and $9,500, respectively. The begi cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December Sales Credt sales Cash sales One month after sale Total cash receipts Graham Potato Company Cash Receipts Schedule October November December

Graham Potato Company has projected sales of $10,200 in September, $13,500 in October, $20.200 in November $16.200 in December of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining d percent are paid two months after. Determine collections for November and December Also assume Graham's cash payments for November and December are $17000 and $9,500, respectively. The begi cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December Sales Credt sales Cash sales One month after sale Total cash receipts Graham Potato Company Cash Receipts Schedule October November 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

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The management of Marigold Industries estimates that credit sales for August, September, October, and November will be $550,000, $735,000, $885,000, and $480,000, respectively. Experience has shown that collections are made as follows: In month of sale 25% In first month after sale 60% In second month after sale 10% Determine the collections from customers in October and November
Millen’s managers have made the following additional assumptions and estimates Estimated sales for July and August are $310,000 and $330,000, respectively. Each month’s sales are 20% cash sales and 80% credit sales. Each month’s credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. Each month’s ending inventory must equal 20% of the cost of next month’s sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred. The company does not plan to buy or sell any plant and equipment…
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Manisha
Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 11% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Month 1 2 3 4 Total sales $74,000 $90,000 $66,000 $44,000 Total cash receipts in Month 4 will be: Multiple Choice $36,960. $64,900. $50,160. $48,600.
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Vertical Ladder Company (VLC) forecasts its sales for January through April will be $60,000, $70,000, $100,000, and $90,000, respectively. All sales are made on credit, and it is expected that 20 percent of sales will be collected in the month of the sale and the remainder will be collected the month following the sale. Customers who pay in the month of the sale will take the 4 percent cash discount VLC offers for paying early. VLC normally purchases and pays for raw materials, which cost 60 percent of sales, one month prior to selling the finished products. Employees' wages represent 30 percent of sales and rent is $4,000 per month. At the beginning of February, VLC expects to have $6,000 in cash, which is $2,000 greater than its target cash balance. Using the information provided, construct VLC's cash budget for February and March. Round your answers to the nearest dollar. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". February March…

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