Frontier Ltd., a leader in solar technology, makes all sales on credit, offering terms 2/10 net 40. Expected sales for each month January to June (in $M) are respectively; Jan Feb Mar April May June 145 Sales (SM) 70 95 120 130 110. The accounting staff has prepared a schedule detailing the expected cash collections over the 6 month period January to June. From experience, Frontier expects to collect 20% of any month's sales in that same month, 70% in the following month, and the remaining 10% in the second month following the month of sale. Its expenses, estimated as a percentage of the month's projected sales are; for raw material (50%) paid in the following month since it gets 30 days' credit from its suppliers, wages and salaries (15%) and lease payments (5%) both paid in the month of sale. Taxes are paid at the end of each quarter and are expected to be $22M. (i) Set out ABC's cash budget for the April – June quarter? (ii) Identify whether Frontier has a cash surplus or deficit for each month

Valley's managers have made the following additional assumptions and estimates: Estimated sales for July and August are $345,000 and $315,000 respectively Each month's sales are 20% cash sales and 80% credit sales.  Each month's credit sales are collected 30% in the month of the sale and 70% in the month following the sale.  All of the accounts receivable at June 30 will be collected in July Each month's ending inventory must equal 20% of the cost of the next month's sales.  The Cost of Goods Sold is 60% of sales.  The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase.  All of the accounts payable at June 30 will be paid in July Monthly selling and administrative expenses are always $75,000.  Each month $10,000 of this total amount is depreciation expense and the remaining $65,000 relates to expenses that are paid in the month they are incurred The company does not plan to buy or…

Jasper Company has 59% of its sales on credit and 41% for cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $534,000 for April, $544,000 for May, and $569,000 for June. Total sales for March are $301,800. Prepare a schedule of cash receipts from sales for April, May, and June. Sales Cash receipts from: Total cash receipts JASPER COMPANY Schedule of Cash Receipts from Sales April 534,000 May 544,000 June 569,000

OfficeMart Inc. has “cash and carry” customers and credit customers. OfficeMart estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 40% pay their accounts in the month of sale, while the remaining 60% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: Month Projected sales April $56,000 May 65,000 June 72,000   The Accounts Receivable balance on March 30 was $35,000.  Prepare a schedule of cash collections from sales for April, May, and June.