Create the monthly cash collections table, cash disbursements table, net cash inflow table and the cash balance table for the following company.

Assume level sales, a 45-day collection period implies 1/2 of a month's sales are collected in the subsequent month and 1/2 in the second month after sale.

First quarter for the Ajax Company.

-All sales on credit. The sales forecast is:

	JAN	$55,000	MAR	$65,000
	FEB	$65,000	APR	$60,000

-November sales were $80,000; December sales were $95,000; the average accounts receivable period is 45 days; December 31^st receivables were $135,000.

-Wages, taxes, and other expenses are 30% of sales.

-Raw materials are purchased on credit with an average payable period of 30 days. Raw materials are ordered two months in advance of forecasted sales, and are 50% of sales.

-Annual cash dividend of $100,000 is to be paid in March.

-No capital expenditures are planned for the first three months.

-The beginning cash balance is $41,000. The minimum cash balance is $25,000.

Answer rating: 100% (QA)

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