*** Please show to solve in excel with formulas**** The company has estimated ex

Question

*** Please show to solve in excel with formulas****

The company has estimated expenses as follows:

General and Administrative Expenses per month: $5,500

Material Purchases (are paid in the month following the purchase): 11% of sales

Interest Expense per month: $250

Rent expenses per quarter starting March: $950

Sales are collected as follows:

In the month of sales: 20%

In the next month: 5%

After 2 months: 30%

After 3 months: Remaining Balance

a. Find the cash outflows for February

b. Calculate the cash outflows for June

c. Calculate the collection from sales for December

d. Calculate the collection from sales for June

Month Sales Month Sales Jan $15306 July $21,083 Feb $15222 Aug $25,000 March $20,121 Sep $25,400 April $22,400 Oct $18,950 May $19,220 Nov $19,220 June $20,212 Dec $19,088

Explanation / Answer

a. Find the cash outflows for February

7434

a. Find the cash outflows for June

8814

c. Calculate the collection from sales for December

d. Calculate the collection from sales for June

Purchase payment (15306*11%) 1684 General and Administrative Expenses per month 5500 Interest Expense per month 250 Cash outflow for February

7434

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