Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 18, Problem 10QP
Calculating Cash Collections [LO3] The following is the sales budget for Harp, Inc., for the first quarter of 2015:
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Credit sales are collected as follows:
65 percent in the month of the sale
20 percent in the month after the sale
15 percent in the second month after the sale
The accounts receivable balance at the end of the previous quarter was $93,000 ($62,000 of which was uncollected December sales).
a. Compute the sales for November.
b. Compute the sales for December.
c. Compute the cash collections from sales for each month from January through March.
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Schedule of Cash Collections on Accounts Receivable and Cash BudgetBennett Inc. found that about 15% of its sales during the month were forcash. Bennett has the following accounts receivable collectionexperience:
Percent collected in the month of sale
Percent collected in the month after the sale
Percent collected in the second month after the sale
25
68
5
Bennett's anticipated sales for the next few months are as follows:
AprilMayJuneJulyAugust
$250,000290,000280,000295,000300,000
(Note: Round all amounts to the nearest dollar.)
Required:1. Calculate credit sales for May, June, July, and August.2. Prepare a schedule of cash receipts for July and August.
Schedule of Cash Collections on Accounts Receivable and Cash Budget
Bennett Inc. found that about 30% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience:
Percent paid in the month of sale
25
Percent paid in the month after the sale
68
Percent paid in the second month after the sale
5
Bennett's anticipated sales for the next few months are as follows:
April
$250,000
May
290,000
June
280,000
July
295,000
August
300,000
Required:
1. Calculate credit sales for May.$
Calculate credit sales for June.$
Calculate credit sales for July.$
Calculate credit sales for August.$
Schedule of Cash Collections on Accounts Receivable and Cash Budget
Bennett Inc. found that about 30% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience:
Percent paid in the month of sale
25
Percent paid in the month after the sale
68
Percent paid in the second month after the sale
5
Bennett's anticipated sales for the next few months are as follows:
April
$250,000
May
290,000
June
280,000
July
295,000
August
300,000
Required:
1. Calculate credit sales for May.$fill in the blank 5ada08018fd8065_1
Calculate credit sales for June.$fill in the blank 5ada08018fd8065_2
Calculate credit sales for July.$fill in the blank 5ada08018fd8065_3
Calculate credit sales for August.$fill in the blank 5ada08018fd8065_4
2. Prepare a schedule of cash receipts for July and August. Round your answers to the nearest whole dollar, if necessary. If an amount box does not require…
Chapter 18 Solutions
Fundamentals of Corporate Finance
Ch. 18.1 - What is the difference between net working capital...Ch. 18.1 - Prob. 18.1BCQCh. 18.1 - List five potential sources of cash.Ch. 18.1 - Prob. 18.1DCQCh. 18.2 - Prob. 18.2ACQCh. 18.2 - Prob. 18.2BCQCh. 18.2 - Prob. 18.2CCQCh. 18.3 - What keeps the real world from being an ideal one...Ch. 18.3 - What considerations determine the optimal size of...Ch. 18.3 - Prob. 18.3CCQ
Ch. 18.4 - Prob. 18.4ACQCh. 18.4 - Prob. 18.4BCQCh. 18.5 - Prob. 18.5ACQCh. 18.5 - Describe two types of secured loans.Ch. 18.6 - Prob. 18.6ACQCh. 18.6 - In Table 18.6, what would happen to Fun Toys...Ch. 18 - Prob. 18.1CTFCh. 18 - A firm has an operating cycle of 64 days and a...Ch. 18 - Prob. 18.4CTFCh. 18 - Prob. 18.5CTFCh. 18 - Operating Cycle [LO1] What are some of the...Ch. 18 - Prob. 2CRCTCh. 18 - Prob. 3CRCTCh. 18 - Cost of Current Assets [LO2] Loftis Manufacturing,...Ch. 18 - Operating and Cash Cycles [LO1] Is it possible for...Ch. 18 - Use the following information to answer Questions...Ch. 18 - Use the following information to answer Questions...Ch. 18 - Prob. 8CRCTCh. 18 - Use the following information to answer Questions...Ch. 18 - Use the following information to answer Questions...Ch. 18 - Changes in the Cash Account [LO4] Indicate the...Ch. 18 - Prob. 2QPCh. 18 - Changes in the Operating Cycle [LO1] Indicate the...Ch. 18 - Prob. 4QPCh. 18 - Calculating Cash Collections [LO3] The Morning...Ch. 18 - Prob. 6QPCh. 18 - Prob. 7QPCh. 18 - Calculating Payments [LO3] Sedman, Corp., has...Ch. 18 - Calculating Payments [LO3] The Torrey Pine...Ch. 18 - Calculating Cash Collections [LO3] The following...Ch. 18 - Calculating the Cash Budget [LO3] Here are some...Ch. 18 - Prob. 12QPCh. 18 - Prob. 13QPCh. 18 - Prob. 14QPCh. 18 - Calculating the Cash Budget [LO3] Wildcat, Inc.,...Ch. 18 - Prob. 16QPCh. 18 - Costs of Borrowing [LO3] In exchange for a 400...Ch. 18 - Prob. 18QPCh. 18 - Prob. 1MCh. 18 - Prob. 2MCh. 18 - Prob. 3M
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