Show in excel format - 9. The sales for Re - Works Inc., a company that fabricates iron fencing from recycled metals, are all on account. For the first three months of the year, Re - Works management expects the following sales: A table shows Re - Works Inc's sales for January ($120,000), February ($130,000) and March ($140,000). Based on past collection patterns, management expects the following: A table shows Re - Works Inc's collection patterns in the month of February showing month of sale (10%), month after sale (50%), and the remainder - second month after sale (40%). Also, based on past experience, management forecasts that 5 percent of accounts receivable will be uncollectible and will eventually be written off. What are the expected cash receipts for March? 10. With the same sales forecasts as in question 9, Re - Works Inc. management would like to implement some changes to credit policy and credit terms that they believe would change the collection pattern going forward and would lower the uncollectible accounts prediction to 3 percent. What would be the expected cash receipts for March? A table shows Re-Works Inc's collection patterns in the month of February. The month of sale is 15%, month after sale is 55 %, the remainder is 30%, and bad debt expense is 3%.
Show in excel format - 9. The sales for Re - Works Inc., a company that fabricates iron fencing from recycled metals, are all on account. For the first three months of the year, Re - Works management expects the following sales: A table shows Re - Works Inc's sales for January ($120,000), February ($130,000) and March ($140,000). Based on past collection patterns, management expects the following: A table shows Re - Works Inc's collection patterns in the month of February showing month of sale (10%), month after sale (50%), and the remainder - second month after sale (40%). Also, based on past experience, management forecasts that 5 percent of accounts receivable will be uncollectible and will eventually be written off. What are the expected cash receipts for March? 10. With the same sales forecasts as in question 9, Re - Works Inc. management would like to implement some changes to credit policy and credit terms that they believe would change the collection pattern going forward and would lower the uncollectible accounts prediction to 3 percent. What would be the expected cash receipts for March? A table shows Re-Works Inc's collection patterns in the month of February. The month of sale is 15%, month after sale is 55 %, the remainder is 30%, and bad debt expense is 3%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Show in excel format - 9. The sales for Re - Works Inc., a company that fabricates iron fencing from recycled metals, are all on account. For the first three months of the year, Re - Works management expects the following
sales: A table shows Re - Works Inc's sales for January ($120,000), February ($130,000) and March ($140,000). Based on past collection patterns, management expects the following: A table shows Re - Works Inc's
collection patterns in the month of February showing month of sale (10%), month after sale (50%), and the remainder - second month after sale (40%). Also, based on past experience, management forecasts that 5
percent of accounts receivable will be uncollectible and will eventually be written off. What are the expected cash receipts for March? 10. With the same sales forecasts as in question 9, Re - Works Inc. management
would like to implement some changes to credit policy and credit terms that they believe would change the collection pattern going forward and would lower the uncollectible accounts prediction to 3 percent. What
would be the expected cash receipts for March? A table shows Re-Works Inc's collection patterns in the month of February. The month of sale is 15%, month after sale is 55 %, the remainder is 30%, and bad debt
expense is 3%.
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