![Business](/tpl/images/cats/ekonomika.png)
Business, 17.04.2020 23:09, DAVISJOS00123
The president of the retailer Prime Products has just approached the company’s bank with a request for a $61,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used:
a. On April 1, the start of the loan period, the cash balance will be $42,500. Accounts receivable on April 1 will total $165,200, of which $141,600 will be collected during April and $18,880 will be collected during May. The remainder will be uncollectible.
b. Past experience shows that 30% of a month’s sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the three-month period follow:
April May June
Sales (all on account) $ 304,000 $ 532,000 $ 275,000
Merchandise purchases $ 232,000 $ 201,500 $ 138,000
Payroll $ 27,600 $ 27,600 $ 22,000
Lease payments $ 41,200 $ 41,200 $ 41,200
Advertising $ 60,200 $ 60,200 $ 60,280
Equipment purchases $ − − 82,000
Depreciation $ 33,000 $ 33,000 $ 33,000
c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $150,500.
d. In preparing the cash budget, assume that the $61,000 loan will be made in April and repaid in June. Interest on the loan will total $960.
Required:
1. Calculate the expected cash collections for April, May, and June, and for the three months in total.
2. Prepare a cash budget, by month and in total, for the three-month period.
![answer](/tpl/images/cats/otvet.png)
Answers: 1
Other questions on the subject: Business
![image](/tpl/images/cats/ekonomika.png)
Business, 21.06.2019 21:10, HannahVance99
Of the roles commonly found in the development, maintenance, and compliance efforts related to a policy and standards library, which of the following has the responsibilities of directing policies and procedures designed to protect information resources, identifying vulnerabilities, and developing a security awareness program?
Answers: 3
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 06:40, SkyMelvin
10. which of the following is true regarding preretirement inflation? a. defined-benefit plans provide more inflation protection than defined-contribution plans. b. because of preretirement inflation, possible investment-related growth is increased for defined-contribution plans. c. all types of benefits are designed to cope with preretirement inflation. d. preretirement inflation is generally reflected in the increase in an employee's compensation level over a working career.
Answers: 3
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 06:40, haleyturkey
Depreciation on the company's equipment for 2017 is computed to be $18,000.the prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains. the office supplies account had a $700 debit balance on december 31, 2016; and $3,480 of office supplies were purchased during the year. the december 31, 2017, physical count showed $300 of supplies available. two-thirds of the work related to $15,000 of cash received in advance was performed this period. the prepaid insurance account had a $6,800 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of insurance policies showed that $5,800 of coverage had expired. wage expenses of $3,200 have been incurred but are not paid as of december 31, 2017.
Answers: 3
Do you know the correct answer?
The president of the retailer Prime Products has just approached the company’s bank with a request f...
Questions in other subjects:
![Konu](/tpl/images/cats/obshestvoznanie.png)
Social Studies, 22.02.2022 14:00
![Konu](/tpl/images/cats/en.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 22.02.2022 14:00
![Konu](/tpl/images/cats/fizika.png)
![Konu](/tpl/images/cats/pravo.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 22.02.2022 14:00
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/fizika.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 22.02.2022 14:00
![Konu](/tpl/images/cats/en.png)
English, 22.02.2022 14:00