FM11_Ch_22_P18_Build_a_Model

FM11_Ch_22_P18_Build_a_Model - Chapter 22 Solution to Ch 22...

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7/5/2003 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 January Original sales estimates $180,000 $180,000 $360,000 $540,000 $720,000 $360,000 $360,000 $90,000 $180,000 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) Collections During month of sale During 1st month after sale During 2nd month after sale Total collections Purchases Labor and raw materials Payments for labor and raw materials Note: When the percent collected during the second month after sale is changed, the percent for collections during month after sale is automatically changed so that 100% of sales are collected during the three-month period.
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