Reference no: EM132802201
Problem - Forecasted details for All Spice Groceries for the quarter ending 31 March 2020 are as follows:
|
January
|
February
|
March
|
Sales
|
$450,000
|
$400,000
|
$500,000
|
Purchases
|
$140,000
|
$280,000
|
$300,000
|
It is expected that 20% of Sales are for cash and 80% are credit sales. It is expected that credit sales will be collected in the following pattern:-
70%
|
1 month after the sale
|
30%
|
2 months after the sale
|
Additional Information:-
All purchases are payable in the same month of purchase.
Stock at the end is expected to be for January $10,000, February $12,000 and March $14,000.
Selling Expenses are $40,000 per month. Depreciation of Delivery Van is $3,000 per month. This amount has been included in the Selling Expenses.
Management is installing a new computer system in January at a cost of $10,000. A deposit of 25% is required in January and the balance to be paid in February.
Cash proceeds of $30,000 from investments are expected in February.
Payment for new office equipment of $15,000 is to be paid in February.
The bank balance as at 1 January is $14,000.
Required -
[1] Write a Cash Collections Budget for January, February and March.
[2] Write a Cash Budget for January, February and March. Show each month in a separate column.
[3] From your results, do you consider All Spice Groceries to be in a strong financial position? Briefly explain.
What actions would you take
: You receive a phone call from an attorney stating they are representing a client in a divorce case. The attorney's client is married to one of your clients
|
What are some technological tools you could use to address
: What are some technological tools you could use to address the issue and What are some potential barriers to using the chosen technology
|
Technology in social work practice
: Consider a scenario of using technology in social work practice. A real experience is better, but if you do not have one, consider any example.
|
Describe your personal or professional experience
: Describe your personal or professional experience with the technology and State the technology you would most like to learn more about. Why
|
Write a Cash Collections Budget for January and February
: Stock at the end is expected to be for January $10,000, February $12,000 and March $14,000. Write a Cash Collections Budget for January and February
|
Prepare the journal entry for the acquisition of equipment
: Benenson Company bought some equipment on a contract entailing a €200,000 cash down payment. Prepare the journal entry for the acquisition of equipment
|
How much will each class of claimants receive
: Accounts Payable, $4 million; Debentures Payable, $5 million; and First Mortgage Payable, $11 million. How much will each class of claimants receive
|
Discuss why it is better to base a selection system
: Discuss why it is better to base a selection system on science than a "gut feeling." What are some of the possible consequences of a non-scientific approach
|
Should western styles make or buy their range of denim jeans
: Western Styles Ltd currently design and manufacture their own range of denim jeans. Should Western Styles Ltd make or buy their range of denim jeans
|