a Copy Wrap Text General Format Painter | B | -1 E o». . Merge & Center, I s-% ,

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a Copy Wrap Text General Format Painter | B | -1 E o». . Merge & Center, I s-% , | Conditional Format. Merge & Center. S . % ,, conditio al Fo t da - lin Formatting + as Table- Styles- Styles Clipboard Font Alignment 181 10 Billie 11 through September. 12 13 14 15 April 16 May 17 June lo Electronics Company's actual sales and purchases for April and May are shown below along with forecasted sales and purchases for lune 320000130000 300000 275000 275000 180000 290000 200000 330000 170000 120000 18 July 19 August 20 September 21 22 Every month the company makes 10% of its sales for cash and 90% of its sales on credit. 23 of the credit sales 20% are collected in the month after the sale and 80% are collected 2 months after the sale 24 Bille Jo pays for 40% of its purchases in the month after purchase. 25 Billie Jo pays for 60% of its purchases 2 months after purchase. 26 Labor expense equals 10 percent of the current month's sales 27 Overhead expense equals $12,000 per month 28 Interest Expense payments of $30,000are paid in June and September. 29 A cash dividend of $50,000 will be paid in June. 30 Tax payments of $25,000 will be pald in June and September. 81 Billie Jo will be replacing a machine in September and they expect to pay $300,000 in September. 32 Billie Jo's Ending cash balance in May is $20,000. Instructions Multple Choice Case Problem 1 Case Problem 2 t destination and press ENTER or choose Paste o() e Search the web and Windows

Explanation / Answer

April May June July August September Sales    320,000    300,000    275,000    275,000    290,000        330,000 Cash sales10%      32,000      30,000      27,500      27,500      29,000          33,000 Creit sales 90%    288,000    270,000    247,500    247,500    261,000        297,000 collections(month after sale(20%)      57,600      54,000      49,500      49,500          52,200 collections(two month after sale(80%)    230,400    216,000    198,000        198,000 Total cash receipts      32,000      87,600    311,900    293,000    276,500        283,200 Purchases    130,000    120,000    120,000    180,000    200,000        170,000 payment (40% month after purchase)      52,000      48,000      48,000      72,000          80,000 payment (60% 2 month after purchase)      78,000      72,000      72,000        108,000 Labor expense 10% of sales      32,000      30,000      27,500      27,500      29,000          33,000 overheads      12,000      12,000      12,000      12,000      12,000          12,000 Interest expense      30,000          30,000 cash dividend      50,000 Tax payments      25,000          25,000 replacing machine        300,000 Total cash payment      44,000      94,000    270,500    159,500    185,000        588,000 Net cash flow    (12,000)      (6,400)      41,400    133,500      91,500      (304,800) cummulative cashflow    (12,000)    (18,400)      23,000    156,500    248,000        (56,800) 1) Aug yeilds the highest net cashflow 2) September yields the lowest net cashflow 3) April , May and September

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