Assume that Tiana's Elegant Dining Room Inc. has projected sales for the following 6 month period....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assume that Tiana's Elegant Dining Room Inc. has projected sales for the following 6 month period. November December August $ 41,000 October $ 53,000 $ 47,000 $ 50,000 Tiana's collects 20% of its sales in the month they are made, 30% in the following month and 45% two months later. 5% of this sales are uncollectible. It had sales of $33,000 in May and $38,000 in June. July $ 43,000 September $ 49,000 a) Calculate the Total Cash Receipts for each month in this period. b) What is the total amount of uncollectible sales for the period? c) What is the projected value for accounts receivable at the end of the period? Assume that Tiana's Elegant Dining Room Inc. has projected sales for the following 6 month period. November December August $ 41,000 October $ 53,000 $ 47,000 $ 50,000 Tiana's collects 20% of its sales in the month they are made, 30% in the following month and 45% two months later. 5% of this sales are uncollectible. It had sales of $33,000 in May and $38,000 in June. July $ 43,000 September $ 49,000 a) Calculate the Total Cash Receipts for each month in this period. b) What is the total amount of uncollectible sales for the period? c) What is the projected value for accounts receivable at the end of the period?
Expert Answer:
Answer rating: 100% (QA)
To calculate the total cash receipts for each month in the period well follow the given collection percentages for each months sales Well also calcula... View the full answer
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
Students also viewed these finance questions
-
A die is loaded, and it has been determined that the probability distribution associated with the experiment of rolling the die and observing which number falls uppermost is given by the following:...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Current Attempt in Progress Joseph Taylor recorded the following transactions during the month of April. Apr. 3 16 20 Cash Service Revenue Rent Expense Cash Salaries and Wages Expense Cash 3,020 690...
-
Show that the relativistic form of Newtons Second Law becomes -3/2 2-3/2 du F= m dt
-
1) Your task on the first day as an investment manager is to provide a client with an overview of several industries. The available data (Brand value.xlsx) contains the brand value and revenue in...
-
Suppose an investor has utility function $U$. There are $n$ risky assets with rates of return $r_{i}, i=1,2, \ldots, n$, and one risk-free asset with rate of return $r_{f}$. The investor has initial...
-
Differentiate between a free trade area and a common market. Explain the marketing implications of the differences.
-
Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct...
-
Computing Outstanding Checks and Deposits in Transit and Preparing a Bank Reconciliation and Journal Entries The August 2011 bank statement for Allison Company and the August 2011 ledger account for...
-
1. In an ideal Otto cycle, 1000 kJ/kg of heat is inputed per cycle. The temperature and pressure at the beginning of the compression are 15C and 0.1MPa, respectively, with a compression ratio of 10...
-
For each of the following institutions, provide a real-world example and explain how it promotes economic growth. a. Enforceable property rights b. Predictable and stable government c. Efficient...
-
Youve started developing an app that examines students personalities and other characteristics, and sorts them into highly effective study groups. Using the cost-benefit principle, compare your...
-
Alexandria currently has $80,000 in wealth saved up from her private speech therapy practice. Alexandria plans on working for 15 more years and is afraid theres a 5% chance that she will face a...
-
Describe three economic or social changes that have contributed to the trends in labor force participation rates for men and women since the 1950s. How have these changes impacted the trade-offs...
-
What does it mean if a macroeconomic variable is a leading indicator? A lagging indicator? Give some examples of both leading and lagging indicators.
-
Important note, for full credit your deflection and slope equations should be given in terms of the following variables, including the variables shown in this free body diagram where Ro and Rc are...
-
The senior management at Davis Watercraft would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is determined by...
-
Interpret the following information regarding Maness Corporations statement of cash flows. 370 60 430 (300) (400) 200 40 (S 30) Net income Depreciation expense Profits before depreciation Increase in...
-
Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $ 330,000 Rolls- Royce Phantom. Jack currently has $ 45,530 that he may invest. He has found a mutual...
-
The Sharpe Corporations projected sales for the first 8 months of 2014 follow: Of Sharpes sales, 10 percent is for cash, another 60 percent is collected in the month following the sales, and 30...
-
Due to the Covid recession of 2020, the U.S. government budget changed from smaller deficits to very large deficits. What impact would this have on the net exports and private sector balances, all...
-
Verify the likelihood in equation (16.5) for the two-part model. n2. (16.5) -(-)-(-2)/02 L = [] {(p;)" (1 p; )'-'} [[ ( i=1 ri=1
-
Two Population Poissons. We can express the two population problem in a regression context using one explanatory variable. Specifically, suppose that \(x_{i}\) only takes on the values of zero and...
Study smarter with the SolutionInn App