cashbudsum-1

cashbudsum-1 - Assignment #3 Due May 20th 2009. Question 1...

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

View Full Document Right Arrow Icon
Assignment #3 Due May 20 th 2009. Question 1 Halsey Enterprises has projected revenues for the first six month of 2009 as follows: January $120,000 March $140,000 February $160,000 April $190,000 Halsey collects 70 percent of its sales in the month of the sale and the balance in the month following the sale. Raw material purchases are 60% of sales and these are paid for one month prior to the month of sales. Halsey has cash expenses of $30,000 each month. Insurance payments of $26,500 are due in March. (a) Compute cash receipts (inflows) for February and March. (b) Compute cash disbursements (outflows) for February and March. (c) Does Hasley have enough cash inflows to make its tax payments in March? Assume the cash balance at the beginning of February is $3,000. Inflows February March Cash Sales $112,000  $98,000  Acc Rec $36,000  $48,000  $148,000  $146,000  Outflows Acct  payables $84,000  $114,000  Cash  Expense $30,000  $30,000  Insurance $26,500  $114,000  $170,500 
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/08/2011 for the course AFH 3200 taught by Professor Ruben during the Spring '11 term at FIU.

Page1 / 3

cashbudsum-1 - Assignment #3 Due May 20th 2009. Question 1...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online