Compute the cash collections from sales for each month

Assignment Help Financial Management

Reference no: EM13885456

The following is the sales budget for Segura, Inc., for the first quarter of 2013: January February March Sales budget $139,000 $156,000 $171,000 Credit sales are collected as follows: 60 percent in the month of the sale 30 percent in the month after the sale 10 percent in the second month after the sale. The accounts receivable balance at the end of the previous quarter was $98,000 ($80,400 of which was uncollected December sales). Required: (a) Compute the sales for November. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Sales $ (b) Compute the sales for December. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Sales $ (c) Compute the cash collections from sales for each month from January through March. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Cash Collection January $ February $ March $

Reference no: EM13885456

Questions Cloud

Initial cost occurs in year : Initial Cost occurs in year 0. Annual Maintenance Cost starts in year 3 and increases $100 per year Annual Income starts in the year noted and increases at the rate G1 for 5 years, then becomes stable for 3 years and then declines at the rate G2 for ..

Current market rate of interest on the bright sun bonds : Bright Sun, Inc. sold an issue of 30-year $1,000 par value bonds to the public. The bonds had a 12.95 percent coupon rate and paid interest annually. It is now 5 years later. The current market rate of interest on the Bright Sun bonds is 10.53 percen..

What is the firms expected rate of return : Tugurt Inc.'s stock has a 60% chance of producing a 20% return, a 30% chance of producing a 10% return, and a 10% chance of producing a -10% return. What is the firm's expected rate of return?

What is the initial cost of the project : Projected operating costs (other than depreciation) are 73% of sales for the new beverages. However, Coca-cola estimates that projected sales for other carbonated beverages will fall $5 million in 2016, $9 million in 2017, $7 million in 2018, and $4 ..

Compute the cash collections from sales for each month : The following is the sales budget for Segura, Inc., for the first quarter of 2013: January February March Sales budget $139,000 $156,000 $171,000 Credit sales are collected as follows: Compute the cash collections from sales for each month from Janu..

More sensitive to interest rates : A thrift has an annual CGAP of -$25 million. A credit union has an annual CGAP of +$5 million. The thrift has total assets of $500 million and net income of $7.5 million and the credit union has total assets of $40 million and net income of $0.7 mill..

Set up private cemetery business : The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of $87,900 for the firm during the first year, and th..

Account that pays nominal interest rate : Suppose that on January 1 you deposit $100 in an account that pays a nominal (or quoted) interest rate of 11.33463%, with interest added (compounded) daily. How much will you have in your account on October 1, or 9 months later?

What is the amount of the operating cash flow : Hot and Cold has annual sales of $982,000, annual depreciation of $127,000, and net working capital of $243,000. The tax rate is 34 percent and the profit margin is 6 percent. The firm has no interest expense. What is the amount of the operating cash..

User Account

All Pages