View the step-by-step solution to:

Chapter 6 and 7 Problems Please complete the following 8 exercises below in either Excel or a word document (but must be single document). You must...

Chapter 6 and 7 problems

Chapter 6 and 7 Problems Please complete the following 8 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Chapter 6 Exercise 2 2. Schedule of cash collections Sugarland Company sells a single product and anticipates opening a new facility in Charlotte on May 1 of the current year. Expected sales during the first three months of activity are: May, $60,000; June, $80,000; and July, $85,000. Thirty percent of all sales are for cash; the remaining 70% are on account. Credit sales have the following collection pattern: Collected in the month of sale 60% Collected in the month following sale 35 Uncollectible 5 a. Prepare a schedule of cash collections for May through July. b. Compute the expected balance in Accounts Receivable as of July 31. Chapter 6 Exercise 4 4. Production and cash-outlay computations RPR, Inc., anticipates that 120,000 units of product K will be sold during May. Each unit of product K requires four units of raw material A. Actual inventories as of May 1 and budgeted inventories as of May 31 follow. 1-May 31-May Product K (Units) 55,0 00 60,00 0 Rate Materials A (Units) 40,0 00 37,00 0 Each unit of raw material A costs $8; RPR pays for all purchases in the month of acquisition. Invoices that account for 80% of the cost of materials acquired will be paid within 10 days of receipt, entitling the company to a 2% cash discount. a. Determine the number of units of product K to be manufactured in May. b. Compute the May cash outlay for purchases of raw material A.
Background image of page 1
July August September Beginning cash balance $10,000 $ ? $ ? Add: Cash receipts 50,000 63,000 71,000 Deduct: Cash payments -64,000 -58,000 -64,000 Cash excess (deficiency) before financing ($4,000) $ ? $ ? Financing Borrowing to maintain minimum balance ? ? ? Principal repayment ? ? ? Interest payment ? ? ? Ending cash balance $ ? $ ? $ ? Chapter 6 Exercise 5 5. Abbreviated cash budget; financing emphasis An abbreviated cash budget for Big Chuck Enterprises follows.
Background image of page 2
Show entire document

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question