7.4 ale The following are forecasts of sales and purchases for a company. Sales P80,000 90,000 85,000 April May June Purchases P30,000 40,000 0 dol boo 30,000 le boleo All sales are on credit. Records show that 70 percent of the customers pay the mor he sale, 20 percent pay the month after the sale, and the remaining 10 percent pay the se month after the sale. Purchases are all paid the following month at a 2 percent discount. disbursements for operating expenses in June were P5,000. nstructions: Prepare a schedule of cash receipts and disbursements for June.

7.4 ale The following are forecasts of sales and purchases for a company. Sales P80,000 90,000 85,000 April May June Purchases P30,000 40,000 0 dol boo 30,000 le boleo All sales are on credit. Records show that 70 percent of the customers pay the mor he sale, 20 percent pay the month after the sale, and the remaining 10 percent pay the se month after the sale. Purchases are all paid the following month at a 2 percent discount. disbursements for operating expenses in June were P5,000. nstructions: Prepare a schedule of cash receipts and disbursements for June.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 2PROB

See similar textbooks

Similar questions

Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%
24. The company has the following expected pattern of collections on credit sales 70 percentcollected in the month of sale, 15 percent in the month after the month of sale, and 14percent in the second month after the month of sale. The remaining 1 percent is nevercollected. At the end of May, the company has the following accounts receivable balancesFrom April sales P21.00From May sales P48.000The company's expected sales for June are P150,000. How much cash will the companyto collect in June?a. P127400b. P129,000c. P148,600 d. P152.520
2. Calculate the break-even sales when a business has sales of $824,000 and a margin of safetyof 21%.a. $584,000b. $650,960c. $672,100d. $710,000
4. Ruth Company currently has $1,000,000 in accounts receivable. Its days sales outstanding (DSO) is 50days. The company wants to reduce its DSO to the industry average of 32 days by pressuring more ofits customers to pay their bills on time. The company’s CFO estimates that if this policy is adopted thecompany’s average sales will fall by 10 percent. Assuming that the company adopts this change andsucceeds in reducing its DSO to 32 days and does lose 10 percent of its sales, what will be the level ofaccounts receivable following the change? Assume a 365-day year.
5. The chalk company reported sales of P2,000,000 in 20X6 and P3,000,000 in 20X7 made evenly throughout each year. The consumer price index during 20X5 remained constant at 100, and at the end of 20X6 and 20X7 it was 102 and 104, respectively. What should Chalk report as sales for 20X7, restated for general price-level changes? a.3,000,000b.3,029,126c.3,058,821d.3,120,000 6. Lewis Company was formed on January 1, 20X6, Selected balances from the historical cost balance sheet at December 31, 20X7, were as follows: Land (purchased in (20X6)…………………… P120,000Investment in nonconvertible bonds (purchased in 20X6, and expected to be held to maturity)…………60,000 Long-term debt……….80,000 The average cpnsumer price index was 100 for 20X6, and 110 for 20X7. In a constant peso balance sheet (adjusted for changing prices) at December 31, 20X7, these selected account balances should be shown at Land Investment Long-term debt a. 120,000…
Problem: Jasper Jewelry has $150 million in sales. The company expects that its sales will increase 4% this year. Jasper's CFO uses a simple linear regression to forecast the company's inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between inventories and sales (in millions of dollars) is as follows: Inventories = $10 + 0.07(Sales) Given the estimated sales forecast and the estimated relationship between inventories and sales, what is your forecast of the company's year-end inventory level? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to two decimal places.
10. Right Answer Company has the following sales forecast for the selected three-month period in 2018. April, P120,000; May, P70,000; June, P80,000. 70% of sales are collected in the month of sale, and the balance are collected in the following month. Accounts receivable balance in April 1, P100,000. Cash balance in April 1, P60,000. Minimum cash balance required is P50,000. Cash can be borrowed in the multiples of P10,000 from local bank (disregard the interest charges). What is the cash balance at the end of April assuming that cash is received only from customers and that P200,000 is the cash out during April? 11.Selected information from the accounting records of Check Answer Co. is as follows: Net accounts receivable at Dec. 31, 2018, P900,000; Net accounts receivable at Dec. 31, 2019, P1,000,000; Inventories at Dec. 31, 2018, P1,100,000; Inventories at Dec. 31, 2019, P1,200,000; Accounts receivable turnover, 5 times; inventory turnover, 4 times. What is Check Answer Company's…
18. Assume the company's monthly target profit is $17,000. The dollar sales to attain that target profit is closest to:A. $387,392B. $635,069C. $671,925D. $993,313