{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 22 P18 Build a Model Chapter 22. Solution to Ch 22 P18 Build a Mo

# Chapter 22 P18 Build a Model Chapter 22. Solution to Ch 22 P18 Build a Mo

This preview shows pages 1–2. Sign up to view the full content.

Chapter 22. Solution to Ch 22 P18 Build a Model Input Data Collections during month of sale 10% Collections during month after sale 75% Collections during second month after sale 15% Lease payments \$9,000 Target cash balance \$90,000 General and administrative salaries \$27,000 Depreciation charges \$36,000 Income tax payments (Sep & Dec) \$63,000 Miscellaneous expenses \$2,700 New design studio payment \$180,000 Cash on hand July 1 \$132,000 Minimum cash balance \$90,000 Sales, labor, and RM adjustment factor 0% May June July August September October November December Original sales estimates \$180,000 \$180,000 \$360,000 \$540,000 \$720,000 \$360,000 \$360,000 \$90,000 Original labor and raw mat. estimates \$90,000 \$90,000 \$126,000 \$882,000 \$306,000 \$234,000 \$162,000 \$90,000 Collections and purchases worksheet Sales (gross) \$180,000 \$180,000 \$360,000 \$540,000 \$720,000 \$360,000 \$360,000 \$90,000 Collections During month of sale 36000 54000 72000 36000 36000 9000 During 1st month after sale 135000 \$270,000 405000 540000 270000 270000 During 2nd month after sale 27000 \$27,000 54000 81000 108000 54000 Total collections \$198,000 \$351,000 \$ 531,000 \$ 657,000 \$ 414,000 \$ 333,000 Purchases Labor and raw materials \$ 90,000 \$ 90,000 \$ 126,000 \$ 882,000 \$ 306,000 \$ 234,000 \$ 162,000 \$ 90,000 Payments for labor and raw materials \$ 90,000 \$ 126,000 \$ 882,000 \$ 306,000 \$ 234,000 \$ 162,000 Note: When the percent collected during the second month after sale is

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern