SelfTest7b

SelfTest7b - There are two tabs at the bottom of this...

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There are two tabs at the SELF-TEST #6b bottom of this sheet. Instructions for Using this Self-Test By clicking (1) Read the problem and fill in the blank cells below. To print the problem on them you you should highlight the area of the problem and then select "file", "print" from the may switch menus at the top of the screen, then select "selection" and "OK" from the print menu. back and (2) When finished, click the button to go to the solution. forth (3) If you wish to view the problem on screen while solving it - between a) Bring the line of the problem that has the number "(1)" to the top of the screen. self-test #6a b) Then move the cursor to cell A34 (income state.) c) Click on "Window" at the top of the screen and its d) Then click on "Split" related You will be able to scroll up and down the cells of the problem while viewing the data operating cash (4) To return to the normal screen go to "Window" again and click flow "Remove Split". (self-test #6b). Based on the following data fill in the appropriate sections of the Budgeted Operating Cash Flow presented below: (1) Sales are $80,000 in August, $100,000 in September and $120,000 in October, to be collected 50% in month of sale, 30% in following month and 20% two months after the sale. (2) Cost of sales is 40% of sales, to be paid 70% in month of purchase and 30% in the following month. (3) Fixed salaries are $18,000 per month, to be paid $16,000 in the month incurred and $2,000 per month as a year-end bonus. (4) Variable salaries are 10% of sales. (5) Other operating expenses are $15,000 per month and are paid in the month after they are incurred. (6) Depreciation expense is $6,000 per month. (7) The income tax rate is 40% and taxes are paid in December. In Self-Test #6a you prepared a Budgeted Income Statement for this problem. Read upper left hand corner of this sheet. Budgeted Operating Cash Flow August September October Operating Receipts Collections: 1-30 days 31-60 days Over 60 days Total Receipts: Operating Expenditures Purchase Payments: 1-30 days
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31-60 days Payroll - Variable Fixed Other Operating Expenses Depreciation Depreciation is a non-cash expense Income Taxes Taxes are paid in December Total Expenditures: Net Operating Cash Flow
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SELF-TEST #6b - SOLUTION What Is Contained in These Columns Click button (1) The problem is repeated here first to go to (2) Below the problem you will find the solution solution (3) Below the solution you will find an explanation of the solu . (4) If you wish to view the solution while reading the explana
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This note was uploaded on 03/07/2011 for the course HFT 4486 taught by Professor Brier during the Spring '07 term at FIU.

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SelfTest7b - There are two tabs at the bottom of this...

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