Present the monthly and quarterly cash receipts

Reference no: EM131068527

Exercise 5-3

Riverside, Inc. forecasts the following sales for the second quarter of 2015, as well as actual March sales:

March (actual)	April	May	June	2^nd Q. Total
$35,000	$40,000	$55,000	$60,000	$155,000

In addition:

The company makes 60% cash sales and 40% credit sales.

It collects all credit sales in the month after the sale.

The firm budgets $48,000 for monthly operating expenses (including $4,000 for depreciation).

The firm pays one-half of its expenses in the month incurred, and the remaining 50% in the next month. (Riverside, Inc. had $26,000 of accounts payable at the end of March).

Required:

Present the monthly and quarterly cash receipts budget for Riverside, Inc. in the template below.

Present the monthly and quarterly cash payments budget for Riverside, Inc. in the template below.

	April	May	June	2^nd Q
Cash sales
Credit sales collected
Cash receipts

Current month's payments
Payments from last month's purchases
Cash payments

Cash inflow (outflow)

Reference no: EM131068527

Questions Cloud

Arithmetic return and geometric return : A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 43.35 - 2 48.33 $ .57 3 57.25 .60 4 45.33 .80 5 52.25 .85 6 61.33 .93 What are the arithmetic and geometric returns for the stock? Arithmetic return % Geometric retu..

Calculate arithmetic average returns for large-company stock : Suppose we have the following returns for large-company stocks and Treasury bills over a six year period: Year Large Company US Treasury Bill 1 3.97 4.53 2 14.45 4.90 3 19.09 3.82 4 –14.59 6.97 5 –32.08 4.96 6 37.34 6.35. Calculate the arithmetic ave..

How many arrangements are possible : How many arrangements are possible?

Identifying and addressing employee turnover issues : Then, choose three (3) significant factors that you believe have contributed to employees leaving the organization. Next, suggest three (3) methods organizations could utilize to retain their employees. Support your rationale with two (2) examples..

Present the monthly and quarterly cash receipts : The company makes 60% cash sales and 40% credit sales. It collects all credit sales in the month after the sale.

What must a plaintiff prove to win on this theory : On what theory did the franchisees sue Carvel? What must a plaintiff prove to win on this theory? What does economic advantage mean?

Formulate a linear programming model for this problem : Inventory carrying costs are $2 per recorder per month. The manager does not want any inventory carried over past the fifth month. The manager wants to know the monthly production that will minimize total production and inventory costs.

Calculate the standard deviation of the selected data : Use one of the company's historical data sets to calculate the standard deviation of the selected data for the last 5 years. Discuss what the standard deviation means.

Prepare necessary consolidation adjusting journal entries : Prepare all necessary consolidation adjusting journal entries for the year ended 31 December 2016, according to the requirements of AASB 10 Consolidation Financial Statements.

User Account

All Pages