Presentation on theme: "Chapter 26, q. 5, p. 762 Quarterly sales amount projected Q1Q2Q3Q4 Sales800760940870 Accounts Receivable at the beginning of the year are $300. the company."— Presentation transcript:
Chapter 26, q. 5, p. 762 Quarterly sales amount projected Q1Q2Q3Q4 Sales Accounts Receivable at the beginning of the year are $300. the company has a 45-day collection period. Calculate cash collections in each of the 4 quarters. Then redo it with 60 days and 30 days respectively.
q.6, p. 762 calculate the operating cycle ItemBeginningEnding Inventory8,41310,158 Accounts Receivable5,1085,439 Accounts Payable6,9277,625 net sales67,312 Cost of goods sold51,004
q.7, p.763 The projected sales: Q1Q2Q3Q4 Sales Sales in the year following this one are projected to be 15% greater in each quarter. A) calculate payments to suppliers assuming that the company places orders during each quarter equal to 30% of projected sales for the next quarter. Assume that the company pays immediately. What is payable period in this case?
Rework the task assuming a 90-day payables period. And then with 60-day payables period.
q. 8, p. 763 Purchases from suppliers in a quarter are equal to 75% of the next quarter’s forecast sales. The payable period is 60 days. Wages, taxes, and other expenses are 20% of sales. Interest and dividends are 60$ per quarter. Q1Q2Q3Q4 Sales
Sales for the first quarter of the following year are projected at $970. calculate the company’s cash outlays. Q1Q2Q3Q4 Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total