Question 1

A B C D E F G Use the below information and complete a cash forecast for the next three months. 2 You collect 50% of credit sales in the month they occur and 50% in the next month. 3 You pay 50% of the accounts payable balance in the month it is shown and 50% in 4 the next month. The starting cash for a month is the same as the ending cash of the 5 prior month. 6 --J Jan Feb March 8 Starting Cash S 5,000 9 10 Cash Sales $ 60,000 $ 40,000 $ 20,000 11 Credit Sales 70,000 $ 30,000 $ 40, 000 12 13 Accounts Payable 5 20,000 $ 50,000 $ 70,000 14 Payroll 20,000 $ 30, 000 $ 25,000 15 Rent S 20,000 $ 20,000 $ 20,000 16 17 Ending Cash 18 19 20A B C D E 1 You have the below info. Use the adjusted net income approach to determine how much cash you will have. 3 4 Sales 500,000 Expenses S 350,000 Depreciation 50,000 Net Income $ 100,000 AR change 15,000 increase 10 Inventory change (10,000) decrease 11 Current Liabilities change 7,000 increase 12 Fixed Assets change (30,000) decrease 13 Long-term Debt change $ 20,000 increase 14 15 16 17