Question
3 Ellis Electronics Company's actual sales and purchases for April and May are shown here, along with forecasted sales and purchases for June through September.
3 Ellis Electronics Company's actual sales and purchases for April and May are shown here, along with forecasted sales and purchases for June through September. nts April (actual) May (actual) June (forecast) July (forecast) August (forecast) September (forecast) Sales $360,000 340,000 315,000 315,000 330,000 370,000 Purchases $134,000 124,000 124,000 184,000 204,000 174,000 The company makes 10 percent of its sales for cash and 90 percent on credit. Of the credit sales, 40 percent are collected in the month after the sale and 60 percent are collected two months after. Ellis pays for 50 percent of its purchases in the month after purchase and 50 percent two months after. Labour expense equals 15 percent of the current month's sales Overhead expense equals $12,400 per month. Interest payments of $32,000 are due in June and September. A cash dividend of $52,000 is scheduled to be paid in June. Tax payments of $25,400 are due in June and September. There is a scheduled capital outlay of $340,000 in September Ellis Electronics' ending cash balance in May is $22,000. The minimum desired cash balance is $17,000. a. Prepare a schedule of monthly cash receipts for June through September. <
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