Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table Sales forecast First $372 Quarter In Coming Year Second Third $360 $336 Sources of cash Collections on accounts receivable Uses of cash Payments of accounts payable Fourth $384 On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $336. Also, two thirds of the quarter's orders are paid for in the current quarter and the remainder is paid in the following quarter. Assuming that Paymore's labor and administrative expenses are $65 per quarter and that interest on long-term debt is $40 per quarter, work out the net cash flow for Paymore for the coming year using the below table. (Do not round intermediate calculations) First following Year First Quarter $384 Quarter Second Third Fourth

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table Sales forecast First $372 Quarter In Coming Year Second Third $360 $336 Sources of cash Collections on accounts receivable Uses of cash Payments of accounts payable Fourth $384 On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $336. Also, two thirds of the quarter's orders are paid for in the current quarter and the remainder is paid in the following quarter. Assuming that Paymore's labor and administrative expenses are $65 per quarter and that interest on long-term debt is $40 per quarter, work out the net cash flow for Paymore for the coming year using the below table. (Do not round intermediate calculations) First following Year First Quarter $384 Quarter Second Third Fourth

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 17E

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