CHAPTER 9 Solutions - PROBLEM 9-36 1. Schedule of cash...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

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

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

Unformatted text preview: PROBLEM 9-36 1. Schedule of cash collections: January February March Collection of accounts receivable: $165,000 x 20% ................................................................................. $ 33,000 Collection of January sales ($450,000): 60% in January; 35% in February ................................................................................. 270,000 $157,500 Collection of February sales ($540,000): 60% in February; 35% in March ................................................................................. 324,000 $189,000 Collection of March sales ($555,000): 60% in March; 35% in April ................................................................................. 333,000 Sale of equipment................................................... 15,000 Total cash collections ................................................................................. $303,000 $481,500 $537,000 2. Schedule of cash disbursements: January February March Payment of accounts payable................................. $ 66,000 Payment of January purchases ($270,000): 70% in January; 30% in February.................... 189,000 $ 81,000 Payment of February purchases ($300,000): 70% in February; 30% in March...................... 210,000 $ 90,000 Payment of March purchases ($420,000): 70% in March; 30% in April............................ 294,000 Cash operating costs............................................... 93,000 72,000 135,000 Total cash disbursements................................. $348,000 $363,000 $519,000 3. Schedule of cash needs: January February March Beginning cash balance. $ 60,000 $ 60,000 $132,900 Total receipts. 303,000 481,500 537,000 Subtotal. $363,000 $541,500 $669,900 Less: Total disbursements 348,000 363,000 519,000 Cash excess (deficiency) before financing $ 15,000 $178,500 $150,900 Financing: Borrowing to maintain $60,000 balance.. 45,000-0- Loan principal repaid (45,000)-0- Loan interest paid.. (600) *-0- Ending cash balance $ 60,000 $132,900 $150,900 * $45,000 x 8% x 2/12 PROBLEM 9-40 1. Sales budget July August September Sales (in sets)....................................................... 5,000 6,000 7,500 Sales price per set................................................ $60 $60 $60 Sales revenue....................................................... $300,000 $360,000 $450,000 2. Production budget (in sets) July August September Sales..................................................................... 5,000 6,000 7,500 Add: Desired ending inventory........................... 1,200 1,500 1,500 Total requirements............................................... 6,200 7,500 9,000 Less: Projected beginning inventory................... 1,000 1,200 1,500 Planned production..............................................Planned production....
View Full Document

Page1 / 9

CHAPTER 9 Solutions - PROBLEM 9-36 1. Schedule of cash...

This preview shows document pages 1 - 3. Sign up to view the full document.

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