Problem IV *Singal Inc. is preparing its cash budget. It expects to have sales of P30, 000 in January, P35, 000 inFebruary, and P35, 000 in March. If 20% of sales are for cash, 40% are credit sales paid in the monthafter the sale, and another 40% are credit sales paid 2 months after the sale, what are the expectedcash receipts for March?N

We are given that in a month 20% are cash sales. That means money is received as soon as the product…

Answered: Singal Inc. is preparing its cash…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

BCAS Ltd is developing a cash budget for April, May and June 2022, and the following information was gathered: Cash Receipts 1 Sales revenue for February and March 2022 are $200,000 and $180,000 respectively. The forecasted sales revenue for April, May and June 2022 are $170,000, $220,000 and $280,000 respectively. Historically, 30% of the firm’s sales are in cash, 60% are collected in the next month, and the remaining 10% are collected in the second month following the sale. 2 Monthly rental income received is $60,000. 3 Interest income of $10,000 will be received in May 2022. Cash Disbursements 4 The expected purchases are $150,000, $110,000 and $190,000 for the months of April, May and June 2022 respectively. The company pays all its purchases in the month of purchase. 5 Monthly salaries paid is $70,000. 6 Commission is paid to its salesman at 2% of current month’s sales. 7 Renovation of all retail outlets amounting to $400,000…
Assume that sales and expenses forecasts for months April, May, June, and July are as follows. month, 60% are paid in the next month, and 20% are paid in the second month after. All expenses in a month are paid in the same month. There is a $20,000,000 minimum required cash balance at the end of each month, and any shortage from this minimum requirement will be covered by obtaining a loan. Any excess over $20,000,000 will be used to reduce or pay off cumulative loan. Initial cash balance in June is $6,000,000 and there is no cumulative loan at this time. Monthly prorated tax rate is 2%, and monthly interest rate on cumulative loan is 1%. Requirements: Prepare cash budget proforma for months June and July and interpret the result in detail.
Leaning Tower of Pizza, Inc. is preparing its master budget for its first quarter of business. It expects to sell 8,000 pizzas at $7 per pizza per month. It expects to collect 90% of the sales in the month of the sale and 10% in the following month. Calculate its accounts receivable balance at the end of its first quarter.
Janus Inc. needs to prepare a cash budget. The following are actual and forecasted sales figures: Actual Forecast November December January February March April $200,000 $220,000 $280,000 $320,000 $340,000 $330,000 Thirty percent of each month's sales are in cash, 50% are paid the month after sale and 20% are paid two months after sale. Materials cost 30% of sales and are purchased one month prior to sale and paid for 30 days later. Labor expense is 40% of sales, selling and administrative expenses are 5% of sales and both are paid in the month of sale. Overhead is $28,000 per month, depreciation expense is $10,000 per month. Taxes of $8,000 will be paid in January and dividends of $2,000 will be paid in March. Cash on hand at the beginning of January is $80,000 and the desired cash balance is $75,000. Prepare the cash budget for January – March.
How would this be solved ?
Kingbird needs to calculate the company’s expected cash receipts for the upcoming month to determine whether additional financing is needed. Typically, the company’s sales consist of 40% cash sales and 60% credit sales. Of the credit sales, 55% are collected in the same month, and 42% are collected in the following month. The remainder is generally uncollected. Total budgeted sales in June are $136,000 and in July are $186,000. What amount of total cash receipts would Kingbird expect to collect in July? Total cash receipts $enter the total cash receipts in dollars
HH Company is in the process of preparing the cash budget for the last four months of 2022 that is September to December. The following information has been made available. Sept Oct Nov Dec Projected sales quantity (units) 60,000 65,000 65,000 70,000 Additional information: Selling price is ksh 120 per unit but expected to drop by 5% from 1st Payment for goods sold is as follows; 20% in the month of sales, 70% the following month after sales and The balance in the second month after sales. Bad debt is estimated at 3% of sales value. Purchases of goods at ksh 65 per unit are as follows: September 88,000 units, October 84,000 units, November 95,000 units and December 80,000 units. Goods purchased are paid one month in arrears. Monthly expenses estimated at 15% on sales revenue are paid in the month of incurrence. The company plans to buy a delivery van at ksh 2,700,000, 40% of the cost to be paid in October and the…
NorthWest Itd has prepared its master budget. The sales budget states that sales will be £82,000 in May 2024, £153, 500 in June, £137,200 in July and £165, 500 in August. 50% of sales will be credit sales. 70% of customers are expected to pay in the month after the sale, 20% in the second month after the sale, while the remaining 10% are expected to be bad debts. Customers who pay in the month after the sale can claim an 8% early settlement discount. What level of sales receipts should be shown in the cash budget for July 2024 (to the nearest £) ? A. £ 57,627 B. £ 183, 854 C. £ 126, 227 D. £ 122, 981 E. £ 81,098 F. £ 115, 254
Prince Charles Island Company has expected sales of $6,000 in September, $10,000 in October, $16,000 in November, and $12,000 in December. Cash sales are 20 percent and credit sales are 80 percent of total sales. Historically, 40 percent of receivables are collected in the month after the sale, and the remaining 60 percent collected two months after. Assume that the company's cash payments for November are $13,000, and December $6,000. 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 Collections in the month after credit sales Collections two months after credit sales Total cash receipts Prince Charles Island Company Cash Receipts Schedule September S Cash receipts Cash payments Net cash flow Prince Charles Island Company Cash Budget November Beginning cash balance Cumulative cash balance. Monthly loan or (repayment). Cumulative loan balance. Ending cash…
ABC Farm is preparing a collection budget for the year. Sales are expected to be P100,000 in January; P200,000 in February; and P300,000 in March. Approximately 60% of the sale is collected during the month of sale and the other 40% is collected in the following month. What is the collection for March? 1. P 200,00O 2. P 240,00O 3. P 260,00O 4. P 300,00O O 1 O 2 O 3 O 4
BCAS Ltd is developing a cash budget for April, May and June 2022, and the following information was gathered: Cash Receipts 1 Sales revenue for February and March 2022 are $200,000 and $180,000 respectively. The forecasted sales revenue for April, May and June 2022 are $170,000, $220,000 and $280,000 respectively. Historically, 30% of the firm’s sales are in cash, 60% are collected in the next month, and the remaining 10% are collected in the second month following the sale. 2 Monthly rental income received is $60,000. 3 Interest income of $10,000 will be received in May 2022. Cash Disbursements 4 The expected purchases are $150,000, $110,000 and $190,000 for the months of April, May and June 2022 respectively. The company pays all its purchases in the month of purchase. 5 Monthly salaries paid is $70,000. 6 Commission is paid to its salesman at 2% of current month’s sales. 7 Renovation of all retail outlets amounting to $400,000…
Singal Inc. is preparing its cash budget. It expects to have sales of $32,500 in January, $50,000 in February, and $47,500 in March. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March? a. $26,000 b. $47,500 c. $42,500 d. $72,000 e. $46,000

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS