The Oxford Company has budgeted sales revenues as follows: Jan Feb Mar Credit sales $240,000 $192,000 $144,000 Cash sales $144,000 $408,000 $312,000 Total sales $384,000 $600,000 $456,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on credit with 60% paid in the month of purchase and 40% in the month following purchase. Budgeted inventory purchases are $520,000 in January, $360,000 in February, and $168,000 in March. Other budgeted cash receipts: (a) sale of plant assets for $98,800 in February, and (b) sale of new common stock for $134,800 in March. Other budgeted cash disbursements: (a) operating expenses of $54,000 each month, (b) selling and administrative expenses of $100,000 each month, (c) dividends of $152,000 will be paid in February, and (d) purchase of equipment for $48,000 cash in March. The company has a cash balance of $80,000 at the beginning of February and wishes to maintain a minimum cash balance of $80,000 at the end of each month. An open line of credit is available at the bank and carries an annual interest rate of 12%. Assume that all borrowing is done on the first day of the month in which financing is needed and that all repayments are made on the last day of the month in which excess cash is available. Also assume that there is no outstanding financing as of February 1. Requirements: Use this information to prepare a Schedule of Expected Cash Collections from Customers for the months of FEBRUARY and MARCH only (need by 10:30 central),Please attempt to answer before 11:00 central as that is my deadline.,oops! I see you wanted the deadline extended to tomorrow - sorry. that wont work I need to finish tonight by 11:00pm.,Thanks! I'm working on it too so your help will hwlp mw know if I'm on the right track!,Cash Receipts Jan Feb Mar Cash Sales 408000 39000 Credit Sales 60% 76800 86400 Credit sales 40% 115200 57600 Sale of assets 98800 Sale of new common stock 134800 Total Receipts 698800 317800 Less Cash Payments Purchases 50% 260000 180000 Purchases 50% 180000 84000 Operating expense 54000 54000 Selling and Admin 100000 100000 Payment of Dividend 152000 Purchase of Equipment 48000 Repayment of line of credit 28560 Total Payments 746000 494560 Surplus of Deficit -47200 -176760 Opening balance 80000 32800 Closing Balance 32800 -143960 Use of line of credit -22800 0 Ugh - maybe I'm close?,running out of time!,Sorry - out of time.
Paper#6314 | Written in 18-Jul-2015Price : $25