AlphaTech, a rapidly growing distributor of electronic components, is formulating its plans for 20x5. Carol Jones, the firm's marketing director, has completed the foll sales forecast (in thousands) 17 January February s 7,588 8,509 7,500 18,8ae 12,500 13,500 13,580 August 14,500 13, 500 15,500 Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. The following information will be used in preparing the cash flow projection. References Alpha-Tech's excellent record in accounts receivable col month after the sale, and the remaining 40 The purchase of electronic components is Alpha-Tech's largest expenditure, and each month's cost of goods sold is estimated to be 35 percent of sales. Seventy percent of the parts are received by Alpha-Tech one month prior to sale, and 30 percent are received during the month of sale. Historically, 70 percent of accounts payable has been paid one month after receipt of the purchased components, and the is expected to continue. Sixty percent of billings a . percent two months after . 30 percent has been paid two . Hourly wages and fringe benefits, estimated to be 30 percent of the current month's sales, are paid in the month . General and a in the following schedule. All cash expenditures are paid uniformly throughout the year, except the property taxes, which are paid in four equal installments at the end of each quarter. s 3,100 3,680 1,360 2,588 ,600 Promotion utilities Depreciation Total $15,720 2 2 2 2. AlphaTech, a rapidly growing distributor of electronic components, is formulating its plans for 20x5. Carol Jones, the firm's marketing director, has completed the foll sales forecast (in thousands) 17 January February s 7,588 8,509 7,500 18,8ae 12,500 13,500 13,580 August 14,500 13, 500 15,500 Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. The following information will be used in preparing the cash flow projection. References Alpha-Tech's excellent record in accounts receivable col month after the sale, and the remaining 40 The purchase of electronic components is Alpha-Tech's largest expenditure, and each month's cost of goods sold is estimated to be 35 percent of sales. Seventy percent of the parts are received by Alpha-Tech one month prior to sale, and 30 percent are received during the month of sale. Historically, 70 percent of accounts payable has been paid one month after receipt of the purchased components, and the is expected to continue. Sixty percent of billings a . percent two months after . 30 percent has been paid two . Hourly wages and fringe benefits, estimated to be 30 percent of the current month's sales, are paid in the month . General and a in the following schedule. All cash expenditures are paid uniformly throughout the year, except the property taxes, which are paid in four equal installments at the end of each quarter. s 3,100 3,680 1,360 2,588 ,600 Promotion utilities Depreciation Total $15,720 2 2 2 2
