Sequoia Furniture Company's sales over the past three months, half of which are for cash, were as follows: March April $ 410,000 $ 660,000 May $ 530,000 1. Assume that Sequoia's collection period is 60 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May? 2. Now assume that Sequoia's collection period is 45 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May?
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- Sequoia Furniture Company’s sales over the past three months, half of which are for cash, were as follows: March April May $426,000 $676,000 $546,000 a. Assume that Sequoia’s collection period is 60 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May? b. Now assume that Sequoia’s collection period is 45 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May?Sequoia Furniture Company's sales over the past three months, half of which are for cash, were as follows: March $ 420,000 April $ 670,000 May $ 540,000 1. Assume that Sequoia's collection period is 60 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May? 2. Now assume that Sequoia's collection period is 45 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May? 1. Collection period is 60 days Cash receipts Accounts receivable balance 2. Collection period is 45 days Cash receipts Accounts receivable balanceProblem 1. Jane McDonald, a financial analyst for Carroll Company, has prepared the following sales and cash disbursement estimates for the period February to June of the current year. Cash disbursements Month Sales February $500 $400 March 600 300 April 400 600 May 200 500 June 200 200 McDonald notes that historically, 30% of sales have been for cash. Of credit sales, 70% are collected 1 month after the sale, and the remaining 30% are collected 2 months after the sale. The firm wishes to maintain a minimum ending balance in its cash account of $25. Balances above this amount would be invested in short-term government securities (marketable securities), whereas any deficits would be financed through short-term bank borrowing (notes payable). The beginning cash balance at April 1 is $115. a. Prepare cash budgets for April, May, and June. b. How much financing, if any, at a maximum would Carroll Company require to meet its obligations during this 3-month period? c. A pro forma balance…
- QUESTION 3 A firm has sales of $4.5 million, and 12 percent of the sales are for cash. The year-end accounts receivable balance is $575,000. What is the average collection period? (Use a 360-day year). O 26.84 days O45.69 days 37.95 days 52.27 days 17.29 daysQuestion 7: MNO Company's credit sales policy is to have: • 50% of the sales amount in cash • 30% collected after one month • 20% after two months. • The purchasing policy is to pay 60% in cash and the rest is to be paid after one month. Required: a) Calculate the net accounting profit for December. b) Calculate the net cash flow for December. c) Comment on the difference between the two previous answers. Item October November December Sales 400,000 350,000 450,000 Purchases 350,000 340,000 420,000Problem 4 Assume the foilowing are the projected sales of ABC company: MONTH AND YEAR PROJECTED SALES $ 120,000 April 20X1 May 20X1 100,000 June 20X1 80,000 50,000 July 20X1 August 20X1 September 20X1 60,000 90,000 150,000 October 20X1 Additional information: 80 percent of sales are on credit basis. 30 percent of the accounts receivables are are collected during the second month of sale. collected in one month and the remaining Material cost accounts for 25 percent of sales, V Salary expense accounts for 15 percent of sales, and V Production overheads accounts for 15 percent of sales. Required: based on the above information determine: on August? Company on June?
- Question 13 Calculate the average collection period for Roman Inc. if its accounts receivables were $550 at the beginning of a year in which the firm generated $3,000 of sales? OA 61 days OB. 73 days OC. 60 days OD.67 days# 2 The table below highlights Deluna Company's expected sales Month RM January 100,000 February 120,000 March 110,000 The collection on sales for Deluna Company is structured in the following manner: • In the month of sale - 30 percent • One-month after-sale - 60 percent • Two months after-sale - 8 percent • Uncollectible bad debt - 2 percent Compute the total cash receipts in March:1. Bongo Drumz Inc had the following pattern of sales for the months indicated: Sales Nov $48,000 Dec $60,000 Jan $66,000 Feb $68,000 Mar $67,000 Apr May Of the sales, 20% were collected in the current month, 50% were collected in the second month, and 30% were collected in the third month. Required: Calculate total cash receipts for January, February, and March, and the total amount of accounts receivable at the end of March.
- Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $113,000 November 141,000 December 207,000 The Accounts Receivable balance on September 30 was $76,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar. OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 October November December Receipts from cash sales: Cash sales $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 September sales on account:…How would I calculate cash receipts and accounts receivable balance? Sequoia Furniture Company's sales over the past three months, half of which are for cash, were as follows: March $400,000 April $650,000 May $520,000 Assume that Sequoia's collection period is 60 days. What would be its cash receipt in May? What would be its account receivable balance at the end of May?H#5 My Aunt’s Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the month after the sale. Given the following sales, how much cash will be collected in March? Feb: $20,000 March: $60,000 April: $70,000