Chapter 4b

Chapter 4b - Chapter 4b BCS Company's projected sales for...

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Chapter 4b BCS Company's projected sales for the first 5 months are as follows: 1- Januar y $90,00 0.00 Februa ry $80,00 0.00 March $85,00 0.00 April $95,00 0.00 May $100,0 00.00 Of BCS's sales, 15% are made in cash, another 70% is collected the following month, and the final 15% two months after the sale. November and December sales were $200000 and $250000 respectively BCS purchases its inventory one month in advance. Cost of inventory is 50% of its sale price. All inventory purchases are made in cash. The Dec. 31st company cash balance is $45000. Prepare a cash budget for the BCS for the first 5 months. The minimum cash requirement is $10000 2- (Percent of sales forecasting) VickDog Co. had recent sales of $150000 and the following balance sheet (Forecast 2009 balance sheet if projected sales are $180000) : 2008 Balanc e Sheet Assets Cash 12000 Accoun ts Receiva ble 30000 Invento ry 37500 Fixed Assets 60000 Total 139500
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Liabilit ies & Equity Accoun ts Payable 25500 Notes Payable 44900
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This note was uploaded on 10/23/2011 for the course BUS M 301 taught by Professor Jimbrau during the Fall '11 term at BYU.

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Chapter 4b - Chapter 4b BCS Company's projected sales for...

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