The vice president of marketing prepared the following forecast for the last quarter. jared Company
Posted: Wed May 04, 2022 4:34 pm
The vice president of marketing prepared the following forecast
for the last quarter.
jared Company
Sales Forecast
For the quarter ended December 31, 2022
Month
October
November December
Units
5,000
6,000
5,500
Sales
Price x
$
20 x
$ 20 x
$ 20
$ 100,000
$
120,000 $ 110,000
The accounts receivable manager indicated that ten (10) percent
to all sales are in cash; fifteen (15) percent are collected in the
month of the sale; sixty (60) percent are collected one month after
the sale, and fourteen (14) percent are collected two months after
the sale. The remaining amounts are assumed to be
uncollectible. The beginning balance in account receivable
consisted of $ 64,800 from September and $ 10,000 from August.
Required: Prepare the cash
collection schedule for the fourth quarter.
Calculate the uncollectible accounts
expense.
The vice president of marketing prepared the following forecast
for the last quarter.
jared Company
Sales Forecast
For the quarter ended December 31, 2022
Month
October
November December
Units
5,000
6,000
5,500
Sales
Price x
$
20 x
$ 20
x
$ 20
$ 100,000
$ 120,000
$ 110,000
The inventory manager of jared Company estimates that the ending
balance should equal twenty (20) percent of the next month’s sales
requirement.
Assume that there are 1,800 units on hand on September 30.
[2]
Required: Calculate
the purchases (in dollar amounts) for November. Assume that
each unit costs $ 6.00.
Management has established a line of credit with a local bank
that requires all borrowing to commence at the beginning of the
month and all repayments to be at the end of the month plus three
(3) percent interest on the portion repaid. Any borrowing or
repayment must be made in multiples of $ 10,000. [The minimum
cash balance needs to be $ 10,000.]
Company
Cash Receipts and Disbursements
April, May, and June
April
May
June
Cash beginning balance
$ 10,000
$________
$________
Total Cash Collections
225,000
289,600
328,300
Total Cash Available
$ 235,000
$ ______
$ _______
Cash Payments for
Direct Materials
$ 125,000
$ 181,000
$ 186,000
Direct Labor
34,000
63,000
66,000
Overhead
28,000
24,000
25,000
Selling and Administrative Expenses
16,000
17,000
19,000
Insurance
50,000
Dividends
30,000
Minimum Cash Balance
10,000
10,000
10,000
Total Cash Requirement
$ 263,000
$ 295,000
$ 336,000
Excess (Deficit)
($28,000)
please answer all three questions as one
for the last quarter.
jared Company
Sales Forecast
For the quarter ended December 31, 2022
Month
October
November December
Units
5,000
6,000
5,500
Sales
Price x
$
20 x
$ 20 x
$ 20
$ 100,000
$
120,000 $ 110,000
The accounts receivable manager indicated that ten (10) percent
to all sales are in cash; fifteen (15) percent are collected in the
month of the sale; sixty (60) percent are collected one month after
the sale, and fourteen (14) percent are collected two months after
the sale. The remaining amounts are assumed to be
uncollectible. The beginning balance in account receivable
consisted of $ 64,800 from September and $ 10,000 from August.
Required: Prepare the cash
collection schedule for the fourth quarter.
Calculate the uncollectible accounts
expense.
The vice president of marketing prepared the following forecast
for the last quarter.
jared Company
Sales Forecast
For the quarter ended December 31, 2022
Month
October
November December
Units
5,000
6,000
5,500
Sales
Price x
$
20 x
$ 20
x
$ 20
$ 100,000
$ 120,000
$ 110,000
The inventory manager of jared Company estimates that the ending
balance should equal twenty (20) percent of the next month’s sales
requirement.
Assume that there are 1,800 units on hand on September 30.
[2]
Required: Calculate
the purchases (in dollar amounts) for November. Assume that
each unit costs $ 6.00.
Management has established a line of credit with a local bank
that requires all borrowing to commence at the beginning of the
month and all repayments to be at the end of the month plus three
(3) percent interest on the portion repaid. Any borrowing or
repayment must be made in multiples of $ 10,000. [The minimum
cash balance needs to be $ 10,000.]
Company
Cash Receipts and Disbursements
April, May, and June
April
May
June
Cash beginning balance
$ 10,000
$________
$________
Total Cash Collections
225,000
289,600
328,300
Total Cash Available
$ 235,000
$ ______
$ _______
Cash Payments for
Direct Materials
$ 125,000
$ 181,000
$ 186,000
Direct Labor
34,000
63,000
66,000
Overhead
28,000
24,000
25,000
Selling and Administrative Expenses
16,000
17,000
19,000
Insurance
50,000
Dividends
30,000
Minimum Cash Balance
10,000
10,000
10,000
Total Cash Requirement
$ 263,000
$ 295,000
$ 336,000
Excess (Deficit)
($28,000)
please answer all three questions as one