Fomaco Inc. is expecting sales for the months of June to September as follows: June July...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Fomaco Inc. is expecting sales for the months of June to September as follows: June July Aug Sept 200,000 150,000 100,000 300,000 ($) -30% of sales are made on cash basis and the remaining 70% are collected next month. -Purchases in any month are equal to 50% of next month forecast sales and paid the next month. -Cash expenses (interest, salaries, taxes,): 30% of current month sales. a) Calculate the Cash collections in July & August only b) Calculate the total Cash disbursements in July & August only Fomaco Inc. is expecting sales for the months of June to September as follows: June July Aug Sept 200,000 150,000 100,000 300,000 ($) -30% of sales are made on cash basis and the remaining 70% are collected next month. -Purchases in any month are equal to 50% of next month forecast sales and paid the next month. -Cash expenses (interest, salaries, taxes,): 30% of current month sales. a) Calculate the Cash collections in July & August only b) Calculate the total Cash disbursements in July & August only
Expert Answer:
Answer rating: 100% (QA)
To solve this problem lets break it down step by step a Calculate the Cash collections in July Augus... View the full answer
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
Posted Date:
Students also viewed these finance questions
-
Royal Company is preparing budgets for the quarter ending June 30. The marketing department of Royal Company prepares the following information that will be used to prepare a budget for the quarter...
-
Petite Sirne inc. is a small company specializing in the manufacture of plastic pools. Its president, your cousin, is trying to forecast cash flow for July and August (20X1). July and August (20X1)....
-
Giant Corporation (a U.S. corporation) forms Small Corporation in a foreign country. Giant owns 70% of Small Corporation's stock and the remaining stock is owned by citizens of the country in which...
-
1. How many times must a person roll a die so that the probability of obtaining at least one 6 is greater than 95%? 2. How many times must a person roll a die so that the probability of obtaining at...
-
What conditions must the IASB meet in order for adoption of IFRS by the United States in 2011? List one or two conditions that will be the most difficult to accomplish.
-
How and why would a country give up any of its sovereign powers?
-
Organic Life Co. is an HMO for businesses in the Portland area. The following account balances appear on the balance sheet of Organic Life Co: Common stock (250,000 shares authorized), $125 par,...
-
n 1 1. lim tantan is equal to 004-1 1+r+r2 2. 3. If the least and the largest real values of a, for which the equation z + a |2-1+21=0(z=C and i=1) has a solution, are p and q respectively, then 4(p...
-
In Exercise 3.108 on page 215, we see that the home team was victorious in 70 games out of a sample of 120 games in the FA premier league, a football (soccer) league in Great Britain. We wish to...
-
Write the expression for distribution in gi phase cells three statistics: a) Maxwell's Boltzmann statistics of Ni particles (elementry cells) using b) Bose - Einstein Statistics 9 Fermi -Oirac...
-
Explain under what circumstance firms should go for a centralized purchasing approach or decentralized purchasing approach and why. The extent to which you explain circumstance/conditions for a...
-
2. Four forms of Planning- Based on your SWOT analysis, complete the table below by writing plans for each of the four forms. Assume you are part of the management board for the College. 1 tttt a) 1...
-
4. Given: Operating Income (or EBIT) Dividends Income Dividends Distributed to Shareholders Interest Expenses Interest Income Net Realized Capital Gain $500,000 100,000 125,000 220,000 30,000 50,000...
-
Explain the following for the marketing plan for introducing men's flex jeans by Levi's: Product review: Explain what are the products offered by the company, Overall product strategy: Explain the...
-
A stock currently trades at $36. The continuously compounded risk-free rate of interest is 12%, and the volatility of the stock return is 46%. Use the Black-Scholes formula to compute each of the...
-
Prisoners dilemma is very significant in Oligopoly market where there are around 45 large firms and each spend huge amount of money on advertsisment and increase sales Product type is similar and...
-
What mass of KBr (in grams) should you use to make 350.0 mL of a 1.30 M KBr solution?
-
Company produces asphalt roofing materials. The production budget in bundles for Pendel's most popular weight of asphalt shingles is shown for the following months: _________________Units...
-
The Babbel division of Bandeni Company had operating income last year of $152,250 and operating assets of $2,175,000. Bandeni's minimum acceptable rate of return is 8 percent. Required: 1. Calculate...
-
The following describes the job responsibilities of two employees of Sparrow Manufacturing. Joan Dennison, Cost Accounting Manager. Joan is responsible for measuring and collecting costs associated...
-
A professional baseball team set its sights on winning the World Series. The team owner wanted to win big and win fast. Consequently, the team sank all of its resources into trading for the best...
-
Immediately following World War II, the quality of products produced by Japanese companies was not good enough to compete in the international marketplace. The only advantage Japanese companies had...
-
Two quality managers meet for lunch every Friday to discuss common problems, compare notes, and make suggestions to each other. Today their discussion has turned into a debate. The topic is the...
Study smarter with the SolutionInn App