Presentation on theme: "Quarterly sales amount projected"— Presentation transcript:
1 Quarterly sales amount projected Chapter 26, q. 5, p. 762Quarterly sales amount projectedQ1Q2Q3Q4Sales800760940870Accounts Receivable at the beginning of the year are $300. the company has a 45-day collection period. Calculate cash collections in each of the 4 quarters. Then redo it with 60 days and 30 days respectively.
2 q.6, p. 762 calculate the operating cycle ItemBeginningEndingInventory8,41310,158Accounts Receivable5,1085,439Accounts Payable6,9277,625net sales67,312Cost of goods sold51,004
3 q.7, p.763 The projected sales: 540630710785Sales in the year following this one are projected to be 15% greater in each quarter.A) calculate payments to suppliers assuming that the company places orders during each quarter equal to 30% of projected sales for the next quarter. Assume that the company pays immediately. What is payable period in this case?
4 Rework the task assuming a 90-day payables period. And then with 60-day payables period.
5 q. 8, p. 763Purchases from suppliers in a quarter are equal to 75% of the next quarter’s forecast sales. The payable period is 60 days. Wages, taxes, and other expenses are 20% of sales. Interest and dividends are 60$ per quarter.Q1Q2Q3Q4Sales750920890790
6 Sales for the first quarter of the following year are projected at $970. calculate the company’s cash outlays.Q1Q2Q3Q4Payment of accountsWages, taxes, other expensesLong-term financing expenses (interest and dividends)Total