Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
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Chapter 4, Problem 19P
Watt’s Lighting Stores made the following sales projection for the next six months. All sales are credit sales.
Sales in January and February were
Prepare a monthly cash receipts schedule for the firm for March through August.
Of the sales expected to be made during the six months from March through August, how much will still be uncollected at the end of August? How much of this is expected to be collected later?
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Marlin Company projects the follwoing sales for the first thre months of the year: $11500 in January; $10100 in February and $10400 in March. the company expects 60% of the sales to be cash and the remainder on accounts. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Account Receivable account has a zero on January.
1. Prepare a schedule of cash receipts for Marlin for January, February and March. What is the balance in Accounts Receivable on March 31?
2. Prepare a revised schedule of cash receipts if receipts from sales on account are 70% in the month of the sale, 20% in the following month of the sale and 10% in the second month of the sale. What is the balance in Accounts Receivable on March 31?
Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.
March
April
May
June
July
August
$ 38,000
47,000
29,000
44,000
55,000
59,000
Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent
are uncollectible, 40 percent are collected in the month of sale, 30 percent are collected in the following month, and 20 percent are
collected two months after sale.
Prepare a monthly cash receipts schedule for the firm for March through August.
Credit sales
Collections:
In month of sale
One month after sale
Two ths after
January February
$ 41,000
$ 39,000
$
$
Simpson Glove Company
Cash Receipts Schedule
March
April
47,000 $
38,000 $
13,680 X $
10,260 x
X
16,920 × $
12,690 X
8,460 X
$
38,070
Total cash receipts
$
30,780
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
May
29,000 $
10,440 X $
7,830…
Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March $ 12,000 June $
14,000 April 16,000 July 17,000 May 10,000 August 18,000 Sales in January and February were $13, 500 and $13,000 respectively.
Experience has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are
collected in the following month, and 20 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for
the firm for March through August. Ed's Waterbeds Cash Receipts Schedule January February March April May June July August Sales $
$ $ $ $ $ $ $ Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts $ $ $ $
$$b. Of the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of
August? How much of this is expected to be collected later? Amount…
Chapter 4 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Ch. 4 - What are the basic benefits and purposes of...Ch. 4 - Explain how the collections and purchases...Ch. 4 - With inflation, what are the implications of using...Ch. 4 - Explain the relationship between inventory...Ch. 4 - Prob. 5DQCh. 4 - Discuss the advantage and disadvantage of level...Ch. 4 - What conditions would help make a percent-of-sales...Ch. 4 - Prob. 1PCh. 4 - Philip Morris expects the sales for his clothing...Ch. 4 - Galehouse Gas Stations Inc. expects sales to...
Ch. 4 - The Alliance Corp. expects to sell the following...Ch. 4 - Prob. 5PCh. 4 - Cyber Security Systems had sales of 3,500 units at...Ch. 4 - Dodge Ball Bearings had sales of 15,000 units at...Ch. 4 - Sales for Ross Pro’s Sports Equipment are expected...Ch. 4 - Vitale Hair Spray had sales of 13,000 units in...Ch. 4 - Delsing Plumbing Company has beginning inventory...Ch. 4 - On December 31 of last year, Wolfson Corporation...Ch. 4 - At the end of January, Higgins Data Systems had an...Ch. 4 - At the end of January, Mineral Labs had an...Ch. 4 - Convex Mechanical Supplies produces a product with...Ch. 4 - The Bradley Corporation produces a product with...Ch. 4 - Sprint Shoes Inc. had a beginning inventory of...Ch. 4 - J. Lo’s Clothiers has forecast credit sales for...Ch. 4 - Simpson Glove Company has made the following sales...Ch. 4 - Watt’s Lighting Stores made the following sales...Ch. 4 - Ultravision Inc. anticipates sales of $290,000...Ch. 4 - The Denver Corporation has forecast the following...Ch. 4 - Wright Lighting Fixtures forecasts its sales in...Ch. 4 - The Volt Battery Company has forecast its sales in...Ch. 4 - Graham Potato Company has projected sales of...Ch. 4 - Harry’s Carryout Stores has eight locations. The...Ch. 4 - Archer Electronics Company’s actual sales and...Ch. 4 - Prob. 27PCh. 4 - The Manning Company has financial statements as...Ch. 4 - Conn Man’s Shops, a national clothing chain, had...
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