5.35
Required . Prepare Conradt's cash recipes budget for the second quarter of the coming year. b. How much cash will conndt sacrifice in the second quarter by being the new discount? c. What do you think led Comrade to offer the new discount comes 5.35 (LO 4 Excel Comprehensive Cash Hudget (CMA adapted) Grow Starter Products arap idly growing distributor of home gardening equipment is formulating ita plans for the coming year Carol Jones, the firm's marketing director, has completed the following sales forecast Month Sales Month Sales $ 900.000 July 51.150.000 February 51.000.000 August 51.500.000 March $ 900.000 September S400.000 April $1,100,000 October $1.600.000 May $ 850.000 November $1.300.000 June 5950.000 December $1.000000 Phillip Smith, an accountant in the Planning and Budgeting Department is responsible for preparing the cash flow projection. He has gathered the following information - All sales are made on credit Crow Master's excellent moord in accounts receivable collection is expected to continue with 30% of hillings collected in the month of sale, con or ballings collected in the month after sale and the remain ing to collected two months after the sale Cost of goods sold. Grow Master's largest expens is estimated to equal 45of sales dollars. Fortyper cent of inventory is purchased one month prior to sale and cos during the month of sale. For example, in April, 60s of April.cost of goods sold is purchased and 40 of Maycost of gods sold is purchased All purchases are made on count. Historically 75% of accounts payable have been paid during the month of purchase, and the remaining 25 in the month following purchase Hourly wapes and fringe benefits, estimated at 30% of the current month's sales are paid in the month incurred General and administrative expecte projected to be 51.473,000 for the year. Abdown of the expens follows. All expenditures are paid monthly throughout the year, with the exception of prop erty taxes which are paid in four equal installment at the end of each quarter. 5 315.000 60,000 Sales and finge benefits Advertising Property taxes Tunce Utilities Depreciation 192.000 10.000 346.000 Operating income for the first quarter of the coming year is pjected to be $330.000. Growater is stibject to a 40 tax rate. The company pay 10 of its estimated toes in the month filtering the end of each quarter Grow Master maintains a minimum ch balance of $50,000. the cash balance is less than $50.000 at the end of the month the company towagainst is 125 line of condimorder to maintain the balance. All borrowings are made it the beginning of the month, und all payments are made at the end of the thonth (In increments of $1.000). Accrued interest is paid in fall with each principal payment The projected cash bulance on April 10,000 Required Prepare the receipts budget for the second quarter b. Prepare the purchase budget for the second quartur Prepare the cash payments budget for the second quarter d. Prepare the cash bollyset for the second quarte
