close

Ch

 Ch Article
  • Ch
  • 21.08.2019

16. J. Lo's Clothiers provides forecast credit sales intended for the fourth 1 / 4 of the yr as: Sept (actual)

$70, 000

Fourth Quarter�

Oct

$60, 500

November

55, 000

January

80, 1000

Schedule of money receipts (LO2)

Experience has shown that 30 percent of sales are collected in the month of sale, 62 percent in the following month, and 10 percent are never gathered. Prepare a routine of cash invoices for J. Lo's Clothiers covering the 4th quarter (October through December). Solution:

M. Lo's Clothiers

September

October

November

January

Credit revenue

$70, 1000

$60, 000

$55, 500

$80, 1000

30% Collected in month of sales

18, 000

16, 500

24, 000

60% Collected in month after sales

forty two, 000

36, 000

33, 000

Total cash invoices

$60, 000

$52, five-hundred

$57, 000

19.

The Elliot Firm has forecast the following sales for the first several months in the year: January

$12, 500

May

$12, 000

February

16, 000

June

20, 000

03

18, 500

July

twenty two, 000

The spring

24, 1000

Schedule of money payments (LO2)

Regular monthly material acquisitions are set equal to 20% of expected sales for month. Of the total materials costs, forty five percent happen to be paid in the month of purchase and 60 percent in the subsequent month. Labor costs will certainly run $6, 000 per month, and fixed overhead is $3, 000 each month. Interest payments on the debt will be $4, 500 for both equally March and June. Finally, Elliot's salesforce will receive a 3 percent commission in total sales for the first 6 months of the 12 months, to be paid on June 30. Make a monthly summary of cash repayments for the six-month period from January through 06. (Note: Calculate prior 12 , purchases to help get total material repayments for January. ) Solution:

Elliot Organization

Cash Payments Schedule

December.

Jan.

February.

March

The spring

May

June

July

Revenue

$12, 500

$16, 000

$18, 1000

$24, 000

$12, 1000

20 dollars, 000

$22, 500

Acquisitions

(20% of next

month's sales)

a couple of, 400

three or more, 200

three or more, 600

4, 800

2, 400

4, 000

four, 400

Repayment

(40% of current

purchases)

1, 280

1, 440

1, 920

960

you, 600

one particular, 760

Materials payment

(60% of previous

month's purchases)

1, 440

1, 920

2, one hundred sixty

2, 880

1, 440

2, 400

Total repayment

pertaining to materials

a couple of, 720

3, 360

5, 080

several, 840

several, 040

4, 160

Labor costs

six, 000

6, 000

6th, 000

6th, 000

6th, 000

six, 000

Fixed overhead

several, 000

three or more, 000

three or more, 000

several, 000

several, 000

three or more, 000

Interest rates

4, 500

4, five-hundred

Sales commission rate

(3% of $102, 000)

3, 060

Total repayments

$11, 720

$12, 360

$17, 580

$12, 840

$12, 040

20 dollars, 720

25

Carter Paint Organization has vegetation in seven midwestern states. Sales to get last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to this of previous years (and this will continue in the future). All property (including set assets) and current liabilities will vary straight with product sales. Percent-of-sales method (LO3)

BALANCE SHEET�

(in dollar millions)�

Assets�

Liabilities and Stockholders' Equity�

Cash

$ 5

Accounts payable

$15

Accounts receivable

15

Built up wages

six

Inventory

31

Accrued fees

4

Current assets

60

Current debts

25

Fixed assets

forty five

Notes payable

30

Common stock

12-15

Retained earnings

20

Total assets

$90�

Total liabilities and stockholders' equity

$90�

Carter Fresh paint has an aftertax profit margin of 5 percent and a dividend payout ratio of 30 percent. In the event sales grow by 10 % next year, figure out how many dollars of new money are had to finance the expansion. (Assume Carter Fresh paint is already applying assets for full capacity and that plant must...

 Veganism: Dairy and Vegans Essay

Veganism: Dairy and Vegans Essay

Veganism can dramatically alter types life forever, often creating deep emotional changes. Though choosing veganism is a method to obtain great joy, it can also make friction amongst family and friends.…...

Read
 cell cycle Essay

cell cycle Essay

The Cell Routine What is the relationship between cell cycle and cancer? When cells lose control and keep dividing; dont find out when to prevent. keep forming new cellular…...

Read