Reference no: EM132980077

Questions -

Q1. JULYEN, Inc. forecasts the following sales levels: January, P420; February, P435; March, P450; and April, P470. Historically, 40% of its sales are for cash. Of the remaining sales, 80% are collected in one month, 15% are collected in the second month, while the rest remain uncollected. November sales were P380 and December sales were P500. (all values P000) Purchases are made at 60% of the next month's sales forecast, and are paid for in the month of purchase. Other cash outlays are: rent, P10 monthly; wages and salaries, P50 monthly; a tax payment of P30 in March; an interest payment of P15 in March; and a planned purchase of P20 of new fixed assets in January. What is the forecasted amount to be collected from cash sales in March?

A. 450

B. 360

C. 261

D.180

Q2. JULYEN, Inc. forecasts the following sales levels: January, P420; February, P435; March, P450; and April, P470. Historically, 40% of its sales are for cash. Of the remaining sales, 80% are collected in one month, 15% are collected in the second month, while the rest remain uncollected. November sales were P380 and December sales were P500. (all values P000)Purchases are made at 60% of the next month's sales forecast, and are paid for in the month of purchase. Other cash outlays are: rent, P10 monthly; wages and salaries, P50 monthly; a tax payment of P30 in March; an interest payment of P15 in March; and a planned purchase of P20 of new fixed assets in January. Refer to JULYEN, Inc. What are forecasted total cash collections for January?

A. 420

B. 442

C. 168

D. 240

Q3. JULYEN, Inc. forecasts the following sales levels: January, P420; February, P435; March, P450; and April, P470. Historically, 40% of its sales are for cash. Of the remaining sales, 80% are collected in one month, 15% are collected in the second month, while the rest remain uncollected. November sales were P380 and December sales were P500. (all values P000)Purchases are made at 60% of the next month's sales forecast, and are paid for in the month of purchase. Other cash outlays are: rent, P10 monthly; wages and salaries, P50 monthly; a tax payment of P30 in March; an interest payment of P15 in March; and a planned purchase of P20 of new fixed assets in January.. Suppose JULYEN, Inc. forecasts an ending cash balance of P20, its minimum desired balance, in January. If February's forecasted cash expenditures are P400, which of the following describes the changes to JULYEN's cash balance and level of borrowing, if any, related to its minimum cash balance, at the end of February?

A. net cash flows of P21; borrowing will increase P21

B. net cash flows of P21; borrowing will decrease P21

C. net cash flows of P11; borrowing will increase P9

D. net cash flows of P11; borrowing will decrease P9

Q4. JULYEN, Inc. forecasts the following sales levels: January, P420; February, P435; March, P450; and April, P470. Historically, 40% of its sales are for cash. Of the remaining sales, 80% are collected in one month, 15% are collected in the second month, while the rest remain uncollected. November sales were P380 and December sales were P500. (all values P000)Purchases are made at 60% of the next month's sales forecast, and are paid for in the month of purchase. Other cash outlays are: rent, P10 monthly; wages and salaries, P50 monthly; a tax payment of P30 in March; an interest payment of P15 in March; and a planned purchase of P20 of new fixed assets in January. Suppose JULYEN experiences a change in customer payment patterns in accounts receivable, so that payments are now 30% in cash, and of the credit sales, 60% are collected in one month, 35% are collected in the second month, with the rest uncollected. What is the new forecasted collection for January, and how much is this different from the original forecast?

A. P408; P72 higher

B. P336; P93 lower

C.P442; P13 higher

D. P429; P13 lower