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:
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 18E
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