Problem 19-8 Forecasting Payments (LO2) Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows: Sales forecast First $ 396 Quarter 1 2 3 4 Quarter in Coming Year Second Third $333 $ 343 Fourth $ 391 Calculate Paymore's cash payments to its suppliers assuming that two-thirds of the purchases are paid for in the quarter that they are purchased and one-third are paid in the following quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Answer is not complete. Payment S 75,000 X Following Year First Quarter $ 391

Problem 19-8 Forecasting Payments (LO2) Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows: Sales forecast First $ 396 Quarter 1 2 3 4 Quarter in Coming Year Second Third $333 $ 343 Fourth $ 391 Calculate Paymore's cash payments to its suppliers assuming that two-thirds of the purchases are paid for in the quarter that they are purchased and one-third are paid in the following quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Answer is not complete. Payment S 75,000 X Following Year First Quarter $ 391

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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Problem 5-2 Rancho, Inc. forecasts the following sales for the second quarter of 2020, as well as actual March sales: March (actual) April May June 2nd Q. Total $3,000 $4,000 $5,000 $6,000 $15,000 In addition: The company makes 60% cash sales and 40% credit sales. It collects all credit sales in the month after the sale. The firm budgets $4,400 for monthly operating expenses. That amount includes $400 for depreciation. The firm pays all of its cash-based expenses in the month incurred. Rancho, Inc. had $100 of cash at March 31, 2020, and it must maintain a minimum $500 cash balance at the end of every month to ensure liquidity. The company has a line of credit with its bank that allows borrowing in $100 increments at 12% interest. All borrowing takes place at the beginning of the month in which the company requires cash. The company must repay principal in hundred dollar increments. The credit facility requires Rancho, Inc. to repay all accrued interest to date whenever…
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November December January February March Actual Actual Forecast Forecast Forecast 80 000 150 000 180 000 240 000 300 000 • The cash from sales are received as follows: o 30% in the month of sale o 40% 1 month after sale o 30% 2 months after sale • Purchases are 65% of sales • Cash purchases are made in the following manner: o 20% cash in the month of purchase o 40% 1 month after purchase o 40% 2 months after purchase • Cash dividends of R15 000 was received in January • Rentals of R7 500 are due and paid at the end of each month • The company has 1 salaried employee who is paid each month • Wages incurred and paid equate to 8% of the previous months sales • The company bought a new machine in March for R250 000. Only a deposit of R130 000 was due and payable in March • A provisional tax payment of R30 000 was made at the end the February • R15 000 interest was paid against the company’s bank account in February • Dividends declared at the end of March amounted to R20 000. A 1st payment…
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# 2 The table below highlights Deluna Company's expected sales Month RM January 100,000 February 120,000 March 110,000 The collection on sales for Deluna Company is structured in the following manner: • In the month of sale - 30 percent • One-month after-sale - 60 percent • Two months after-sale - 8 percent • Uncollectible bad debt - 2 percent Compute the total cash receipts in March:
Question: 129 A company plans to purchase inventory for the second half of 2014 as follows: July $ 1,00,000 August $ 75,000 September $ 2,25,000 October $1,25,000 November $ 2,50,000 December $ 30,000 They usually pay 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month. Based on the information, what are the forecasted December cash payments? a. $15,000 b. $18,750 c. $87,500 d. $121,250
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