Question

Schedule of Cash Receipts Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checies are deposited immediately. The bank charges $0.50 per check; the amount per check averages $75. "Bad" checks that Rosita cannot collect make up 3 percent of check revenue. During a typical month, Rosita's has sales of $45,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows: April $32,000 May 45,000 June 56,000 Rosita thinks that it may be time to refuse to accept checks and to start accepting credit cards. She is negotiating with VISA/MasterCard and American Express, and she would start the new policy on April 1. Rosita estimates that with the drop in sales from the 'no checks policy and the increase in sales from the acceptance of credit cards, the net Increase in sales will be 30 percent. The credit cards do involve added costs as follows: VISA/MasterCard: Rosita will accumulate these credit card receipts throughout the month and submit them in one bundle for payment on the last day of the month. The money will be credited ther account by the fifth day of the following month. A fee of 3.5 percent is charged by the credit card company American Express: Rosita will accumulate these receipts throughout the month and send them to American Express for payment on the last day of the month American Express will credit her account by the sixth day of the following month. A fee of 5.5 percent is charged by American Express Rosita estimates the following breakdown of revenues among the various payment methods. Cash 10% VISA/Mastercard 75 American Express 15 also to the nearest Required: Prepare a schedule of cash receipts for May and June that incorporates the changes in poncy. Round your create computations and Rosita's Mexican Restaurant Schedule of Cash Receipts

Answer 1

Schedule Particulars of Cash Receipla May June 19 Normal Sales . Add: Increase in sale by 30%, Total Sales $ 45,000 13,500 58,50r $ 56,000 16,800 72,800 6) Sales Break-down: cash (10% of 197) visal Master-card (asl of a) American appross (15% of a) 5.850 43875 8775 58,500 7,280 54,600 10.920 7280 (2) - Chorges Cash → 0% of (6) visal Marta > 3.5% of (b) Amex -> 5.5 1536 1911 43 601 2019 2512 la (b-c) coon Receipt Cash visa I Mostar AMEX 5.850 42,339 7280 52,689 10,319 70,288 8,292 56481