Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
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Chapter 4, Problem 24P
Graham Potato Company has projected sales of
Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December.
Also assume Graham’s cash payments for November and December are
Prepare a cash budget with borrowing needed or repayments for November and December. (You will need to prepare a cash receipts schedule first.)
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Graham Potato Company has projected sales of $16,200 in September, $18,500 in October, $26,200 in November, and $22,200 in
December. Of the company's sales, 25 percent are paid for by cash and 75 percent are sold on credit. Experience shows that 40
percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after.
Determine collections for November and December.
Also assume Graham's cash payments for November and December are $22,000 and $14,500, respectively. The beginning cash
balance in November is $5,000, which is the desired minimum balance.
a. Prepare a cash receipts schedule for November and December.
Sales
Credit sales
Cash sales
One month after sale
Two months after sale
Total cash receipts
Graham Potato Company
Cash Receipts Schedule
September October
November
$
$
December
6,550
$
19,650
6,550 $
$
22,200
16,650
5,550
5,550
Ind
Graham Potato Company has projected sales of $12,000 in September, $15,000 in October, $22,000 in November, and $18,000 in
December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40
percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after.
Determine collections for November and December.
Also assume Graham's cash payments for November and December are $18,500 and $11,000, respectively. The beginning cash
balance in November is $5,000, which is the desired minimum balance.
a. Prepare a cash receipts schedule for November and December.
Graham Potato Company
Cash Receipts Schedule
Sales
Credit sales
Cash sales
One month after sale
Two months after sale
Total cash receipts
September
October
November
December
Chapter 4 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Ch. 4 - What are the basic benefits and purposes of...Ch. 4 - Explain how the collections and purchases...Ch. 4 - With inflation, what are the implications of using...Ch. 4 - Explain the relationship between inventory...Ch. 4 - Prob. 5DQCh. 4 - Discuss the advantage and disadvantage of level...Ch. 4 - What conditions would help make a percent-of-sales...Ch. 4 - Prob. 1PCh. 4 - Philip Morris expects the sales for his clothing...Ch. 4 - Galehouse Gas Stations Inc. expects sales to...
Ch. 4 - The Alliance Corp. expects to sell the following...Ch. 4 - Prob. 5PCh. 4 - Cyber Security Systems had sales of 3,500 units at...Ch. 4 - Dodge Ball Bearings had sales of 15,000 units at...Ch. 4 - Sales for Ross Pro’s Sports Equipment are expected...Ch. 4 - Vitale Hair Spray had sales of 13,000 units in...Ch. 4 - Delsing Plumbing Company has beginning inventory...Ch. 4 - On December 31 of last year, Wolfson Corporation...Ch. 4 - At the end of January, Higgins Data Systems had an...Ch. 4 - At the end of January, Mineral Labs had an...Ch. 4 - Convex Mechanical Supplies produces a product with...Ch. 4 - The Bradley Corporation produces a product with...Ch. 4 - Sprint Shoes Inc. had a beginning inventory of...Ch. 4 - J. Lo’s Clothiers has forecast credit sales for...Ch. 4 - Simpson Glove Company has made the following sales...Ch. 4 - Watt’s Lighting Stores made the following sales...Ch. 4 - Ultravision Inc. anticipates sales of $290,000...Ch. 4 - The Denver Corporation has forecast the following...Ch. 4 - Wright Lighting Fixtures forecasts its sales in...Ch. 4 - The Volt Battery Company has forecast its sales in...Ch. 4 - Graham Potato Company has projected sales of...Ch. 4 - Harry’s Carryout Stores has eight locations. The...Ch. 4 - Archer Electronics Company’s actual sales and...Ch. 4 - Prob. 27PCh. 4 - The Manning Company has financial statements as...Ch. 4 - Conn Man’s Shops, a national clothing chain, had...
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