Problem 29-8 Collections on receivables Here is a forecast of sales by National Bromide for the first four months of 2019 (figures in $ thousands): Month 1 Month 2 Month 3 Month 4 Cash sales 16 25 19 15 Sales on credit 110 130 100 80 On the average 51% of credit sales are paid for in the current month, 31% are paid in the next month, and the remainder are paid in the month after that. What is the expected cash inflow from operations in months 3 and 4? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number.) Expected Cash Inflow from Operations (in $ thousands) Month 3 Month 4 Problem 29-11 Cash budget The following table lists data from the budget of Ritewell Publishers. Half the company's sales are for cash on the nail; the other half are paid for with a one-month delay. The company pays all its credit purchases with a one-month delay. Credit purchases in January were $36, and total sales in January were $192. Assume all expenses, other than purchases, are cash transactions. February $212 March $232 April $192 Total sales Purchases of materials For cash For credit 76 86 66 46 36 46 Other expenses Taxes, interest, and dividends Capital investment 36 36 36 16 16 16 75 Complete the cash budget in the following table. (Negative amounts should be indicated by a minus sign.) (Figures in $) February March April Sources of cash: Collections on cash sales Collections on accounts receivables Total sources of cash Uses of cash:
Problem 29-8 Collections on receivables Here is a forecast of sales by National Bromide for the first four months of 2019 (figures in $ thousands): Month 1 Month 2 Month 3 Month 4 Cash sales 16 25 19 15 Sales on credit 110 130 100 80 On the average 51% of credit sales are paid for in the current month, 31% are paid in the next month, and the remainder are paid in the month after that. What is the expected cash inflow from operations in months 3 and 4? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number.) Expected Cash Inflow from Operations (in $ thousands) Month 3 Month 4 Problem 29-11 Cash budget The following table lists data from the budget of Ritewell Publishers. Half the company's sales are for cash on the nail; the other half are paid for with a one-month delay. The company pays all its credit purchases with a one-month delay. Credit purchases in January were $36, and total sales in January were $192. Assume all expenses, other than purchases, are cash transactions. February $212 March $232 April $192 Total sales Purchases of materials For cash For credit 76 86 66 46 36 46 Other expenses Taxes, interest, and dividends Capital investment 36 36 36 16 16 16 75 Complete the cash budget in the following table. (Negative amounts should be indicated by a minus sign.) (Figures in $) February March April Sources of cash: Collections on cash sales Collections on accounts receivables Total sources of cash Uses of cash:
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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Transcribed Image Text:Problem 29-8 Collections on receivables
Here is a forecast of sales by National Bromide for the first four months of 2019 (figures in $ thousands):
Month 1
Month 2
Month 3
Month 4
Cash sales
16
25
19
15
Sales on credit
110
130
100
80
On the average 51% of credit sales are paid for in the current month, 31% are paid in the next month, and the remainder are paid
in the month after that. What is the expected cash inflow from operations in months 3 and 4? (Do not round intermediate
calculations. Enter your answers in thousands rounded to the nearest whole number.)
Expected Cash Inflow from
Operations (in $ thousands)
Month 3
Month 4
Transcribed Image Text:Problem 29-11 Cash budget
The following table lists data from the budget of Ritewell Publishers. Half the company's sales are for cash on the nail; the
other half are paid for with a one-month delay. The company pays all its credit purchases with a one-month delay. Credit
purchases in January were $36, and total sales in January were $192. Assume all expenses, other than purchases, are cash
transactions.
February
$212
March
$232
April
$192
Total sales
Purchases of materials
For cash
For credit
76
86
66
46
36
46
Other expenses
Taxes, interest, and dividends
Capital investment
36
36
36
16
16
16
75
Complete the cash budget in the following table. (Negative amounts should be indicated by a minus sign.)
(Figures in $)
February
March
April
Sources of cash:
Collections on cash sales
Collections on accounts receivables
Total sources of cash
Uses of cash:
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