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Hickmann Case

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Name ___________________ Hickman Avionic's actual sales and purchases for April and May are Show here along with forecasted sales and purchases for June through September Sales $410,000 400000 380000 360000 390000 420000 Purchases 220000 210000 200000 250000 300000 220000

Case

Hickman

April (actual) May (actual) June (forecast) July(forecast) August(forecast) September (forecast)

The co makes 10% of sales for cash and 90% on credit. 2% of the credit sales are never collected (this would be split in the same ratio as collections, 20% and 80%) Of credit sales, 20% are collected month after sale, and 80% 2 months after sales Purchases are paid 40% in month after purchase, and 60% 2 months later Note that a 2% discount is taken on …show more content…

What is the accounts receivable balance on Sept 30 (include only net amount to be paid)? Total Sales: $2,360,000.00 Total Reciept $1,671,896.00 Accounts Receivable balanc $688,104.00 e. What are each the short term loan and marketable security balances on Sept 30? f. What is balance of accounts payable on Sept 30 (include only net amount to be paid)? g. calculate DSO and DPO DSO = Accounts Recievable / (total sales / 182 days) DSO = 688104 / (2360000 / 182) DSO = DPO = Accounts Payable / (6 months payable / 182) DPO = 398240 / (1400000/ 182) DPO =

securities :

$ 35,608.00 Loans: $

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