Reference no: EM132955613
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 50 percent of their fees in the month the service is provided. In the month following service, Paul collects 40 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 85 percent is used in the month of purchase, and the remainder is used in the month following purchase.
The following information is available for the months of June, July, and August, which are Paul's busiest months:
June 1 cash balance $16,000.
June 1 supplies on hand $4,400.
June 1 accounts receivable $9,100.
June 1 accounts payable $4,300.
Estimated sales for June, July, and August are $27,300, $41,000, and $43,900, respectively.
Sales during May were $25,700, and sales during April were $18,300.
Estimated purchases for June, July, and August are $10,000, $19,200, and $13,800, respectively.
Purchases in May were $5,500.
Required:
Problem 1. Compute budgeted cash receipts and budgeted cash payments for each month.
Problem 2. Compute the balances necessary to prepare a budgeted balance sheet for August 31.
|
Compute the optimal price per unit that maximizes profit
: Identify two factors to consider when arriving at pricing decisions within the organization. Compute the optimal price per unit that maximizes profit.
|
|
Characteristics and importance of financial markets
: Describe why a manager needs to understand the characteristics and importance of financial markets, including their liquidity, competitiveness, and efficiency.
|
|
Explain which financial ratios would apply to the company
: A recruitment company needs help explaining which financial ratios would apply to the company and which would not. State the reasons for your assertions.
|
|
Role of sub-contracting in form of relationship
: What is the role of sub-contracting in this form of relationship (public-private partnership)? And describe the element of financing in public-private relations
|
|
Compute the balances necessary to prepare a budgeted balance
: Paul's Pool Service provides pool cleaning, chemical application, Compute the balances necessary to prepare a budgeted balance sheet for August 31.
|
|
How much more is aria cash flow worth
: Aria is going to receive a perpetuity of $7,000 p.a. If the interest rate is 11%, how much more is Aria's cash flow worth?
|
|
Prepare walter cash budget for the month of march
: Prepare Walter's cash budget for the month of March. Walter pays wages and other cash expenses in the month incurred. Manufacturing overhead includes $1,450
|
|
Discuss the impact of brexit on uk stock market
: Discuss the impact of Brexit on UK stock market and pound sterling. In the context of Brexit, using literature, discuss the factors that explain the movements i
|
|
Prepare a contribution format income statement segmented
: Prepare a contribution format income statement segmented by product lines. Royal Lawncare Company produces and sells two packaged products
|