The XYZ company specializes in homemade biscuits and receives all income from sales. The sales reverme estimates (in mil
Posted: Tue Nov 16, 2021 7:35 am
The XYZ company specializes in homemade biscuits and receives all income from sales. The sales reverme estimates (in million $) for the company are as follows: Q1 500, Q2-550, Q3-600, Q4-650. Q1 of next year - 650. The average collection period for accounts receivables is 60 days. Beginning receivables (Q1 beginning) is $200 million. The purchases are 50% of next quarter sales. Beginning payables (Q1 beginning) is $150 million. The accounts payable period is 30 days.
Wages and other expenses every quarter are 20% of the sales revenue of that quarter. A CAPEX of $50 million is planned end of Quarter 3. Dividends and interest payments are $10 million every quarter. There are no other expenses. The beginning cash balance (Q1 beginning) is $30 million. How much will be the cash balance at the end of Quarter 2
Wages and other expenses every quarter are 20% of the sales revenue of that quarter. A CAPEX of $50 million is planned end of Quarter 3. Dividends and interest payments are $10 million every quarter. There are no other expenses. The beginning cash balance (Q1 beginning) is $30 million. How much will be the cash balance at the end of Quarter 2