Question: Hayes, Inc. is growing steadily, causing some concerns about its cash flow.The company's estimated sales and purchases for the past three months, plus projected sales

Hayes, Inc. is growing steadily, causing some concerns about its cash flow.The company's estimated sales and purchases for the past three months, plus projected sales and purchases for the next three months, are shown below: Actual Forecast October November December January February March Sales $250,000 $275,000 $300,000 # $325,000 $350,000 $400,000 Purchases $175,000 $200,000 $225,000 # $250,000 $275,000 $300,000 Half of Hayes' sales are for cash.The company's Average Collection Period from customers is 60 days.It's standard pay terms with suppliers is 30 days.

a) What are the company's expected cash receipts in March?

b) What would the company's Accounts Receivable balance be at the end of March?

c) What are the company's expected cash expenditures for purchases in March?

d) What would be the company's Accounts Payable balance at the end of March?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The Huffman coding algorithm requires prior statistical knowledge about the information source and such information is often not available. The solution is to use Adaptive Huffman coding algorithm....

Hayes Inc is growing steadily, causing some concerns about its cash flow. the company's estimated sales and purchases for the past 3 months plus projected sales and purchases for the next 3 months...

Problem 4: Preparing a Cash Budget 10 Points Hayes, Inc. is growing steadily, causing some concerns about its cash flow.The company's estimated sales and purchases for the past three months, plus...

Hayes, Inc. is growing steadily, causing some concerns about its cash flow. The company's estimated sales and purchases for the past three months, plus projected sales and purchases for the next...

Need detailed SWOT Analysis Of this Case. & 500 Words Overview. STATEMENT OF CASH FLOWS: PREPARATION, ANALYSIS & LINKAGES How was Lucky Cement Limited Company able to invest Rs. 5.6 billion in a...

Ratio Analysis for ZCL Calculate the current ratio, quick ratio, net working capital, debt-to equity ratio, times-interest earned, financial leverage, asset turnover, Receivables Turnover, Average...

Assignment Preparing Forecasted Financial Statements Carefully read and complete the following questions. Spelling Inc, a manufacturing company, has been growing quickly but has found that its...

Company X, a manufacturing company, has been growing quickly but has found that its financial situation is continually under pressure. Production has fluctuated to meet demand in an attempt to...

Assume you are the Financial Analyst for Mantly Inc., and it is January 1, 2022 Mantly Inc., a manufacturing company, has been growing quickly, but it has found that its financial situation is...

A Bernoulli differential equation (named after James Bernoulli) is of the form dy / dx + P(x) y = Q(x)yn Observe that, if n = 0 or 1, the Bernoulli equation is linear. For other values of n, show...

Give expressions for y(x, t) for a sinusoidal wave traveling along a string in the negative x-direction, given that y max = 40cm, = 30 cm, f = 10 Hz, and (a) y(x, o) = 0 at x =o, (b) y(x, o) = o at x...

How might the application of Al technologies impact organizational structure? Multiple Choice ook ences As Al technologles get applied in new and innovative ways, business processes may get...

Ann Simpson started her practice as a design consultant on September 1, 2018. During the first month of operations, the business completed the following transactions: Sep. 1 Received $48,000 cash and...

Walter Meyer Productions had the following costs for March: Purchases of direct materials ........ $30,000 Indirect labor .............. 20,000 Ending direct materials inventory ...... 10,000...

The system development project team at Birdie Masters golf schools has been working on defining the architecture design for a new system. The major focus of the project is a networked school location...

Jim Wilson is a typical manufacturing employee who commonly works 40 hours per week and is paid $14 per hour. During the last pay period, Jim performed the following activities: Product...

The Northwest regional manager of an outdoor equipment retailer conducted a study to determine how managers at three store locations are using their time. A summary of the results is shown in the...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

distinguish between joint products and by-products; LO1

present relevant financial information for a decision as to whether a product should be sold at a particular stage or further processed; LO1

explain the alternative methods of allocating joint costs to products; LO1