Elli sport shop projects the following sales.
Apr.= $75000, May= $95000, June= 100,000.
70% of Elli's sale are on credit with 60% of receivables collected in the month afte the sale and the rest of them collected in the 2nd month after the sale. Feb. and Mar. sale were $60000 and $70000 respectively. there is no bad debt for elli.
a) prepare a monthely schedule of cash receipts for april- june?
b) what is the balance of receivable at the end of june?
2.The Amber magic shoppe has forcast its sales revenues and purchases for the last 5 months of 200x to be as follows.
Sales Purchases
August $25000 $17000
Sep. 15000 19500
Oct. 2500029000
Nov.30000 20000
Dec. 26000 24000. 65% of sales on credit.
On the bases of past experience, 50% of the accounts receivable are collected the month after the sale and the reminder are collected 2 months after the sale. purchases are paid 30 days after they are incured. The firm had a cash balance of $5000 as of sep. 30th and its minimum required cash balance is $4000. it had no beginning loan balance. prepare a cash budget for October, November and December.