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Cash collection ( 1 6 marks total ) The following is the sales budget for Transcanada Inc. for the first quarter of 2 0 x
Cash collection marks total
The following is the sales budget for Transcanada Inc. for the first quarter of x:
January February March
Total sales $ $ $
Credit sales are collected as follows: in the month of the sale, in the month after the sale, and in the second month after the sale.
The accounts receivable balance at the end of the previous quarter was $$ of which was uncollected December sales
a Using what you know about the collection periods, calculate the sales for November, marks
b Using what you know about the collection periods, calculate the sales for December. marks
c Calculate the cash collections from sales for each month from January through March. marks
Cash payments marks total
Karamazov Brothers Inc. has projected the following sales for the coming years:
Actual Projected
Qx Qx Qx Qx Qx Qx
Total sales $ $ $ $ $ $
a Calculate payments to suppliers if Karamazov places orders during each quarter equal to of projected sales for the next quarter. Assume that Karamazov pays immediately. marks
b Calculate payments to suppliers assuming a day payables period. marks
c Calculate payment to suppliers assuming a day payables period. marks
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