Hoyt Inc has estimated current year sales (in millions) for the next 4 years Q1)

Question

Hoyt Inc has estimated current year sales (in millions) for the next 4 years Q1) 260 Q2) 300 Q3) 310 Q4) 375 Sales for the 1st quarter next year are projected to by $275 Accts Rec at the beginning of the year were $100 The beginning cash balance is $50 Hoyt Inc turnover is 50 days Purchases from suppliers in a quarter are equal to 60% of the nest quarter's forcasted sales Wages, taxes and other expenses are 25% of current sales. 1) what are total cash collections for Q1? 2)What are total cash disbursements for Q1? 3) What are wages, taxes and other expenses for Q3? 4) What are purchases for Q4? Hoyt Inc has estimated current year sales (in millions) for the next 4 years Q1) 260 Q2) 300 Q3) 310 Q4) 375 Sales for the 1st quarter next year are projected to by $275 Accts Rec at the beginning of the year were $100 The beginning cash balance is $50 Hoyt Inc turnover is 50 days Purchases from suppliers in a quarter are equal to 60% of the nest quarter's forcasted sales Wages, taxes and other expenses are 25% of current sales. 1) what are total cash collections for Q1? 2)What are total cash disbursements for Q1? 3) What are wages, taxes and other expenses for Q3? 4) What are purchases for Q4?

Explanation / Answer

1) total cash collection = 100 + 50 + 300*0.6 + 260*0.25 = 395

2) cash disbursement = 0.4*300 + 260*0.25 = 185

3) 310*0.25 = 77.5

4) purchses = 375*0.6 = 225

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