ezto.mheducation com ii Accounting Web Slice Gallery Sites suggérés 99 Names of
ID: 2601005 • Letter: E
Question
ezto.mheducation com ii Accounting Web Slice Gallery Sites suggérés 99 Names of A...teric Online AC live NelsonBrain- My Home login.aro Windows H - streaming Personnaliser les liens Google BMO - Bank of...line Banking Apple Bing Aplia Yahoo >> My Blackboard Content-Blackboard Learn Chapter 7 Quiz For Marks [1536) Chegg Study Guided Solutions and Study Help Westex Products is a wholesale distributor of industrial dlearing products. When the treesurer of Viestex Products approached the company's bank in late 2019 seaking shon-term financing, he was lold that money was very tight and thet any berrowing over the next year would have to be supported by a detailed statement of cash receipts and disbursements, He was also told that it would be very helptul to the bank if barrowers would indicase the quarters in which they would be needing funds, as welas the amounts that would be needed, and the quarters in which repeyments coud be made Sinoe the treasurer is unsure as to the partioular quariers in which the bank fnancing will be nooded, ho has assembled the folowing information to assist in prepaning a detailed cash budget: a. Budgotod salas and merchandise purchascs for tho yoar 2020, as well as actual salos and purchascs for the last quarter of 2019, are as follows: Sales Purchases $280,000 176,400 420,000 560,000 260,400 347,200 427,000 Third-quarter estimated Fourth-quarter estimated 280,C00 b. The company normaly collects 65% of a quarter's sales before the quarter ends and another 33% in the following quarter. The remainder are uncollect bi. This pattern of colectons is now being experienced in c 80% or a quarters merchandise purchases re paid for within the quarter. The remainder are paid in the d.O e. The company wil pay $14,000 in dividends each quarter the 2019 fourth quarter actual data following quarter amount g expense8 for the year 2020 are budgeted quarterly at $70.000 plus 15% or sales. Ofthe toed ach quarter is deprecation. f. Equipment purchases of $105,000 wil be made in the second quarter, and purchases of $67,200 will be g. The cash account contained $14,000 at the end of 2019. The treasurer feels that this represents a h.Any borrowing will take place at the beginning of a quarter, and any repayments will be mede at the cnd at made in the third quarter. Theee purchaee wil be for cash minimum ba ance that must be maintained a quarter at an amual interest rate of 10%. Interest is paid only when the principal is repaid. Al borrow ngs and all repayments ofthe prinapal must be in round 1,000 mounts. Interesr payments can be n any amount. (Compute interest on whole months, e.g., 1/122/12) I. At present, the compeny has no loans outatanding. Required: 1. Prepere the tollowing by quarter and in total for the year 2020 a. A schedule of expected cash colectons. WESTEX PRODUCTS Schedule of Expected Cash Collections Second irst Third Fourth Total 2015 Fourth quarter ealos 2016-Third-quaner sales 2016-Fourth-quarter sales Total cash distursementExplanation / Answer
Westex Products
Schedule of Expected Cash Collections
First Second Third Fourth Total 2019 - Fourth Quarter Sales ( 280,000 x 33%) $ 92,400 92,400 2020- First Quarter Sales 273,000 138,600 411,600 2020- Second Quarter Sales 364,000 184,800 - 548,800 2020- Third Quarter Sales 455,000 231,000 686,000 2020 - Fouth Quarter Sales 182,000 182,000 Total Cash Collections 365,400 502,600 639,800 413,000 1,920,800Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.