7 Many HR Services (MHR) has provided the following budget data for 2023: Revenue (Fees) $...

Transcribed Image Text:

7 Many HR Services (MHR) has provided the following budget data for 2023: Revenue (Fees) $ January February March April May Direct Cost (Expenses) $ $40,000 45,000 35,000 55,000 60,000 $70,000 65,000 60,000 80,000 75,000 A Collections from clients are normally 80% in the same month in which service is provided, 15% in the first month following the service, and 5% in the second month following the service. MHR pays for Direct Cost (Expenses) in the first month following the month in which Cost/Expenses are incurred. MHR's Cash disbursements for other expenses are expected to be $15,000 for May MHR's cash balance at May 1 was $30,000 Required (show all calculations) a. Compute the expected cash collections during May. b. Compute the expected cash balance at May 31. [Hint: use the table format below for part a & b-Enable the HTML Editor to write your answer 7 Many HR Services (MHR) has provided the following budget data for 2023: Revenue (Fees) $ January February March April May Direct Cost (Expenses) $ $40,000 45,000 35,000 55,000 60,000 $70,000 65,000 60,000 80,000 75,000 A Collections from clients are normally 80% in the same month in which service is provided, 15% in the first month following the service, and 5% in the second month following the service. MHR pays for Direct Cost (Expenses) in the first month following the month in which Cost/Expenses are incurred. MHR's Cash disbursements for other expenses are expected to be $15,000 for May MHR's cash balance at May 1 was $30,000 Required (show all calculations) a. Compute the expected cash collections during May. b. Compute the expected cash balance at May 31. [Hint: use the table format below for part a & b-Enable the HTML Editor to write your answer

Answer rating: 100% (QA)

Expected Collections ... View the full answer