Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,620,000 Quarter 2 5,150,000 Quarter 3 4,890,000 Quarter 4 8,480,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $5,040,000 and for the fourth quarter of the current year are $7,680,000. Required: Question Content Area 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. Quarter Cash Sales Credit Sales 3, current year $fill in the blank 1d3d12fb3fb1016_1 $fill in the blank 1d3d12fb3fb1016_2 4, current year fill in the blank 1d3d12fb3fb1016_3 fill in the blank 1d3d12fb3fb1016_4 1, next year fill in the blank 1d3d12fb3fb1016_5 fill in the blank 1d3d12fb3fb1016_6 2, next year fill in the blank 1d3d12fb3fb1016_7 fill in the blank 1d3d12fb3fb1016_8 3, next year fill in the blank 1d3d12fb3fb1016_9 fill in the blank 1d3d12fb3fb1016_10 4, next year fill in the blank 1d3d12fb3fb1016_11 fill in the blank 1d3d12fb3fb1016_12 Question Content Area 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. If an amount is zero, enter "0". Shalimar CompanyCash Receipts BudgetFor the Coming Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Cash sales $fill in the blank b08a63058ff9037_1 $fill in the blank b08a63058ff9037_2 $fill in the blank b08a63058ff9037_3 $fill in the blank b08a63058ff9037_4 Received on account from: Quarter 3, current year fill in the blank b08a63058ff9037_5 Quarter 4, current year fill in the blank b08a63058ff9037_6 fill in the blank b08a63058ff9037_7 Quarter 1, next year fill in the blank b08a63058ff9037_8 fill in the blank b08a63058ff9037_9 fill in the blank b08a63058ff9037_10 Quarter 2, next year fill in the blank b08a63058ff9037_11 fill in the blank b08a63058ff9037_12 fill in the blank b08a63058ff9037_13 Quarter 3, next year fill in the blank b08a63058ff9037_14 fill in the blank b08a63058ff9037_15 Quarter 4, next year fill in the blank b08a63058ff9037_16 fill in the blank b08a63058ff9037_17 fill in the blank b08a63058ff9037_18 fill in the blank b08a63058ff9037_19 Total cash receipts $fill in the blank b08a63058ff9037_20 $fill in the blank b08a63058ff9037_21 $fill in the blank b08a63058ff9037_22 $fill in the blank b08a63058ff9037_23 Question Content Area 3. What if the recession led Shalimar’s top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption. Shalimar CompanyCash Receipts BudgetFor the Coming Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Cash sales $fill in the blank 12d484f6a072019_1 $fill in the blank 12d484f6a072019_2 $fill in the blank 12d484f6a072019_3 $fill in the blank 12d484f6a072019_4 Received on account from: Quarter 4, current year fill in the blank 12d484f6a072019_5 Quarter 1, next year fill in the blank 12d484f6a072019_6 fill in the blank 12d484f6a072019_7 Quarter 2, next year fill in the blank 12d484f6a072019_8 fill in the blank 12d484f6a072019_9 Quarter 3, next year fill in the blank 12d484f6a072019_10 fill in the blank 12d484f6a072019_11 Quarter 4, next year fill in the blank 12d484f6a072019_12 Total cash receipts $fill in the blank 12d484f6a072019_13 $fill in the blank 12d484f6a072019_14

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