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

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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
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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 .............................................. 5,200 6,300 7,500 3. Raw-material purchases July August September Planned production (sets) ....................................... 5,200 6,300 7,500
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