In the coming year, Sheridan, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $16.00 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30% in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales units 27,000 40,000 60,000 73,000 Prepare Sheridan, Inc.'s cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Round "Budgeted sale price" and "Cash Receipts Budgets" answers to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.) Sales Budget 1st Quarter2nd Quarter3rd Quarter4th QuarterAnnual Budgeted units sold enter a number of unitsenter a number of unitsenter a number of unitsenter a number of unitsenter a number of units Budgeted sales price $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount Budgeted sales revenue $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount Cash Receipts Budget 1st Quarter2nd Quarter3rd Quarter4th QuarterBad Debts 1st quarter sales $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount 2nd quarter sales enter a dollar amountenter a dollar amountenter a dollar amountenter a dollar amountenter a dollar amount 3rd quarter sales enter a dollar amountenter a dollar amountenter a dollar amountenter a dollar amountenter a dollar amount 4th quarter sales enter a dollar amountenter a dollar amountenter a dollar amountenter a dollar amountenter a dollar amount Totals $enter a total amount $enter a total amount $enter a total amount $enter a total amount $enter a total amount Determine the Net Accounts Receivable at the end of the year.Net Accounts Receivable $enter the net accounts receivable in dollars

The sales budget is an estimate prepared to determine the budgeted sales revenue in each quarter or…

Answered: In the coming year, Sheridan, Inc. will…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 5P

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In the coming year, Sheridan, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $16.00 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30% in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows:

			1st Quarter		2nd Quarter		3rd Quarter		4th Quarter
	Budgeted sales units		27,000		40,000		60,000		73,000

Prepare Sheridan, Inc.'s cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Round "Budgeted sale price" and "Cash Receipts Budgets" answers to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

Sales Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Annual
Budgeted units sold	enter a number of units	enter a number of units	enter a number of units	enter a number of units	enter a number of units
Budgeted sales price	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount
Budgeted sales revenue	$enter a total dollar amount	$enter a total dollar amount	$enter a total dollar amount	$enter a total dollar amount	$enter a total dollar amount

Cash Receipts Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Bad Debts
1st quarter sales	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount
2nd quarter sales	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
3rd quarter sales	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
4th quarter sales	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Totals	$enter a total amount	$enter a total amount	$enter a total amount	$enter a total amount	$enter a total amount

Determine the Net Accounts Receivable at the end of the year.

Net Accounts Receivable

$enter the net accounts receivable in dollars

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