Question:Can anyone help me with Q3?
Lannister Company: Cash Receipts and Payments Lannister Company wishes to...
Question
Can anyone help me with Q3?
Can anyone help me with Q3?
Lannister Company: Cash Receipts and Payments Lannister Company wishes to...
Lannister Company: Cash Receipts and Payments Lannister Company wishes to forecast its cash receipts and cash disbursements for the first quarter of 2020. The following data have been assembled: a. Actual sales for November and December of 2019 and forecasted sales data for the first four months of 2020 are as follows: November (actual) S450,000 December (actual) 750,000 January (estimate) 150,000 February (estimate) 75.000 March (estimate) 300,000 April (estimate) 500,000 b. C. Lannister pays for 20% of its inventory purchases in the month of the purchase. An additional 70% is paid for in the month following the purchase. The remaining 10% is paid for in the second month following the purchase. Inventory purchases in November and December were $330,000 and $110,000, respectively. Cash collections of sales are made according to the following pattern: 10% of sales are collected in the month of sale 30% of sales are collected in the month following sale 55% of sales are collected in the second month following sale 5% of sales are never collected On average, cost of goods sold is 75% of sales. Lannister started implementing an ending inventory policy in 2020 that there should be enough inventory at the end of the month to meet the sales needs for the following month. On January 1, Lannister's inventory level is $100,000. Note: Inventory is reported at its COST, not its retail selling price. d. e. Questions: 1. Budgeted sales in March ($300,000) are higher than in January ($150,000) and February ($75,000). Calculate the budgeted net cash flows in January, February and March. Why is the budgeted net cash flow in March is much worse than in January or February? 2. Compute the budgeted difference between cash receipts and cash disbursements for January, February, and March using the following worst-case and best-case sales scenarios. November (actual) December (actual) January (estimate) February (estimate) March (estimate) April (estimate) Worst-Case $450,000 750,000 90,000 50,000 200,000 300,000 Best-Case $450.000 750,000 300.000 180,000 700,000 1,000,000 3. Comment on the differences in budgeted cash amounts in the worst case, middle case in (a) above), and best case scenarios.
Lannister Company: Cash Receipts and Payments Lannister Company wishes to forecast its cash receipts and cash disbursements for the first quarter of 2020. The following data have been assembled: a. Actual sales for November and December of 2019 and forecasted sales data for the first four months of 2020 are as follows: November (actual) S450,000 December (actual) 750,000 January (estimate) 150,000 February (estimate) 75.000 March (estimate) 300,000 April (estimate) 500,000 b. C. Lannister pays for 20% of its inventory purchases...
please solve all the queations, thanks.
[LO 10-4) 10-26 Budgeted Cash Receipts and Cash Disbursements Timpco, a retailer, makes both cash and credit sales (.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows: October November December Cash sales Credit sales $100,000 100,000 $200,000 $ 120.000 150,000 $ 270,000 $ 80,000 90,000 $ 170,000 Total Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are...
Question:
Cash Receipts
25% of sales are in cash and collected in the month the sale is
made and 75% are on credit and collected in the month after the
sale. December 2017 sales were $3 million. The sales forecast for
2018 is as follows:
January 2,800,000
February 2,500,000
March 3,200,000
April 3,400,000
May 3,600,000
June 3,600,000
July 3,800,000
August 4,000,000
September 3,600,000
October 3,400,000
November 2,800,000
December 2,600,000
Cash Disbursements
The disbursements for this firm are as follows:
Payments...
a. Prepare a schedule of monthly cash receipts for January,
February, and March.
b. Prepare a schedule of monthly cash payments for January,
February, and March.
c. Prepare a monthly cash budget with borrowings and repayments
for January, February, and March. (Negative amounts should be
indicated by a minus sign. Assume the January beginning loan
balance is $0.)
Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to...
Accounting Help. Pls Multiple Part Question.
Current Attempt in Progress Sunland Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $432,000 Direct materials purchases 135,000 $388,800 129,600 97,200 75,600 Direct labor Manufacturing overhead 108,000 81,000 91,800 Selling and administrative expenses 85,320 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month...
Information pertaining to Noskey Corporation's sales revenue follows: Cash sales Credit sales Total sales November 2018 (Actual) $ 105,000 270,000 $ 375,000 December 2018 (Budgeted) $ 115,000 395,000 $ 510,000 January 2019 (Budgeted) $ 70,000 200,000 $ 270,000 Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next...
Question 2. (cash receipts from
sales)
Budgeted sales revenue for the coming five months is as
follows:
Month
Sales revenue
August
$160,000
September
$155,000
October
$155,000
November
$115,000
December
$180,000
You estimate that you will collect 35% of sales revenue in the
month of sale, 35% in the following month, 25% two months after the
sale, and the remaining 5% three months after the sale.
Required:
Compute budgeted cash inflows for November and December.
November = $
December...
please help
Che Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. Wilson, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecast sales figures: Actual Forecast Additional Information November $240, 8 January $320,000 April forecast $360,000 December 260,00 February 360,000 March 370,000 of the firm's sales, 60 percent are...
RULE 2. Case Budget for a Small Department Store Assumption 12 Cash balance on December 31 i $12,000 Minimum cash balance is $10.000 Sales are 75 credit and 25 cash Credit sales are collected in the following manner * 60% collected in the first month after the sale 30 collected in the second month after the sale 54 collected in the third month after the sale *5% are never collected Sales forecasts are as follows: Pessimise October (actual November (actual)...
Sweet Company, a specialty chocolate store, prepares a master
budget on a quarterly basis. The company has assembled the
following data to assist in preparing its master budget for the
first quarter:
a. As of December 31 (the end of the prior quarter), the
company’s general ledger showed the following account balances:
Debits
Credits
Cash
$ 50,000
Accounts Receivable
162,500
Inventory
58,000
Buildings and Equipment (net)
370,000
Accounts Payable
$ 65,000
Capital Stock
412,500
Retained Earnings
163,000
$640,500...
Lannister Company: Cash Receipts and Payments Lannister Company wishes to forecast its cash receipts and cash disbursements for the first quarter of 2020. The following data have been assembled: a. Actual sales for November and December of 2019 and forecasted sales data for the first four months of 2020 are as follows: November (actual) S450,000 December (actual) 750,000 January (estimate) 150,000 February (estimate) 75.000 March (estimate) 300,000 April (estimate) 500,000 b. C. Lannister pays for 20% of its inventory purchases...
please solve all the queations, thanks.
[LO 10-4) 10-26 Budgeted Cash Receipts and Cash Disbursements Timpco, a retailer, makes both cash and credit sales (.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows: October November December Cash sales Credit sales $100,000 100,000 $200,000 $ 120.000 150,000 $ 270,000 $ 80,000 90,000 $ 170,000 Total Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are...
a. Prepare a schedule of monthly cash receipts for January,
February, and March.
b. Prepare a schedule of monthly cash payments for January,
February, and March.
c. Prepare a monthly cash budget with borrowings and repayments
for January, February, and March. (Negative amounts should be
indicated by a minus sign. Assume the January beginning loan
balance is $0.)
Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to...
Accounting Help. Pls Multiple Part Question.
Current Attempt in Progress Sunland Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $432,000 Direct materials purchases 135,000 $388,800 129,600 97,200 75,600 Direct labor Manufacturing overhead 108,000 81,000 91,800 Selling and administrative expenses 85,320 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month...
Information pertaining to Noskey Corporation's sales revenue follows: Cash sales Credit sales Total sales November 2018 (Actual) $ 105,000 270,000 $ 375,000 December 2018 (Budgeted) $ 115,000 395,000 $ 510,000 January 2019 (Budgeted) $ 70,000 200,000 $ 270,000 Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next...
please help
Che Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. Wilson, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecast sales figures: Actual Forecast Additional Information November $240, 8 January $320,000 April forecast $360,000 December 260,00 February 360,000 March 370,000 of the firm's sales, 60 percent are...
RULE 2. Case Budget for a Small Department Store Assumption 12 Cash balance on December 31 i $12,000 Minimum cash balance is $10.000 Sales are 75 credit and 25 cash Credit sales are collected in the following manner * 60% collected in the first month after the sale 30 collected in the second month after the sale 54 collected in the third month after the sale *5% are never collected Sales forecasts are as follows: Pessimise October (actual November (actual)...