Company X has a beginning cash balance of $200,000 on February 1, 2008. History

Q: Company X has a beginning cash balance of $200,000 on February 1, 2008. History

Forecast of cash receipts for the month of July: Particulars % Amount ($) February Sales 0 0 March sales 7 47,950 April Sales 20 192,000 May sales 45 315,000 June sales 20 70400 July sales 8 46,960 TOTAL 100 672,310

ID: 2734713 • Letter: C

Question

Company X has a beginning cash balance of $200,000 on February 1, 2008. History shows the company collects from sales as follows: 8% from current month sales; 20% collected 1 month after the sale; 45% collected in the 2" month after the sale, 20% collected in the 3" month after the sale, and 7% collected in the 4" month after the sale. Construct a forecast of cash receipts using the Accounts Receivable Balance Pattern technique for the month of July: February Sales: $750,000 March Sales: $685,000 April Sales: $960,000 May Sales: $700,000 June Sales: $352,000 July Sales: $587,000 August Sales: $670,000

Explanation / Answer

Forecast of cash receipts for the month of July:

Particulars % Amount ($) February Sales 0 0 March sales 7 47,950 April Sales 20 192,000 May sales 45 315,000 June sales 20 70400 July sales 8 46,960 TOTAL 100 672,310

Navigate

Company X has 4 million shares of common stock outstanding. The current share pr

Company X has a sales price of $4.00 per unit and a variable cost of $3.40 per u

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.

Company X has a beginning cash balance of $200,000 on February 1, 2008. History

Question

Explanation / Answer

Related Questions

Navigate