Review File Home Insert Page Layout Formulas PROTECTED VIEW Be carefut -files from the internet can c G1 Data ontain viruses. Unless you need to NAME: 2 PROBLEM Set 7 Chapter 15-Revenue Cycle and Current Accounts Management 5 Assigned Problem I 6 James Buchanan Orthotics and Prosthetics is planning to request a line of credit from its bank 7 The company has produced sales estimates, and these appear in the worksheet below. Collection 8 estimates are as follows: 10 percent within the month of sale, 75 percent in the month following 9 the sale, and 15 percent in the second month following the sale. Labor and supplies estimates als 0 appear in the worksheet below. Payments for labor and supplies are typically made during the 1 month following the one in which these costs have been incurred. General and administrative 2 salaries will amount to approximately S27,000 a month; lease payments under long-term lease 3 contracts will be $9,000 a month; depreciation charges will be S36,000 a month; miscellaneous expenses will be S2,700 a month; income tax payments of S63,000 will be due in both September 5 and December; and a progress payment of $180,000 on a new building must be paid in October. Cash on hand on July 1 will amount to $132,000, and a minimum cash balance of $90,000 will be maintained throughout the cash budget period. What loan will be the company require in ANSWER Mav June Julv Collections worksheet: 1. Billed charges Collections Within 30 days 30-60 days 60-90 days Total collections s180.000 s1s0,000 s360 S0 SO 3, SO Supplies worksheet: Assigned Problem 1 Assigned Proble Review File Home Insert Page Layout Formulas PROTECTED VIEW Be carefut -files from the internet can c G1 Data ontain viruses. Unless you need to NAME: 2 PROBLEM Set 7 Chapter 15-Revenue Cycle and Current Accounts Management 5 Assigned Problem I 6 James Buchanan Orthotics and Prosthetics is planning to request a line of credit from its bank 7 The company has produced sales estimates, and these appear in the worksheet below. Collection 8 estimates are as follows: 10 percent within the month of sale, 75 percent in the month following 9 the sale, and 15 percent in the second month following the sale. Labor and supplies estimates als 0 appear in the worksheet below. Payments for labor and supplies are typically made during the 1 month following the one in which these costs have been incurred. General and administrative 2 salaries will amount to approximately S27,000 a month; lease payments under long-term lease 3 contracts will be $9,000 a month; depreciation charges will be S36,000 a month; miscellaneous expenses will be S2,700 a month; income tax payments of S63,000 will be due in both September 5 and December; and a progress payment of $180,000 on a new building must be paid in October. Cash on hand on July 1 will amount to $132,000, and a minimum cash balance of $90,000 will be maintained throughout the cash budget period. What loan will be the company require in ANSWER Mav June Julv Collections worksheet: 1. Billed charges Collections Within 30 days 30-60 days 60-90 days Total collections s180.000 s1s0,000 s360 S0 SO 3, SO Supplies worksheet: Assigned Problem 1 Assigned Proble