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Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter
Cash Receipts Budget and Accounts Receivable Aging Schedule
Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales:
Quarter $
Quarter
Quarter
Quarter
In Shalimar's experience, percent of sales are paid in cash. Of the sales on account, percent are collected in the quarter of sale, percent are collected in the quarter following the sale, and percent are collected in the second quarter after the sale. The remaining percent are never collected. Total sales for the third quarter of the current year are $ and for the fourth quarter of the current year are $
Required:
Question Content Area
Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year.
Quarter Cash Sales Credit Sales
current year $fill in the blank adbffc
$fill in the blank adbffc
current year fill in the blank adbffc
fill in the blank adbffc
next year fill in the blank adbffc
fill in the blank adbffc
next year fill in the blank adbffc
fill in the blank adbffc
next year fill in the blank adbffc
fill in the blank adbffc
next year fill in the blank adbffc
fill in the blank adbffc
Feedback Area
Feedback
Apply the percentages given to the applicable quarter.
Question Content Area
Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. If an amount is zero, enter
Shalimar Company
Cash Receipts Budget
For the Coming Year
Quarter Quarter Quarter Quarter
Cash sales $fill in the blank affcfc
$fill in the blank affcfc
$fill in the blank affcfc
$fill in the blank affcfc
Received on account from:
Quarter current year fill in the blank affcfc
Quarter current year fill in the blank affcfc
fill in the blank affcfc
Quarter next year fill in the blank affcfc
fill in the blank affcfc
fill in the blank affcfc
Quarter next year fill in the blank affcfc
fill in the blank affcfc
fill in the blank affcfc
Quarter next year fill in the blank affcfc
fill in the blank affcfc
Quarter next year fill in the blank affcfc
fill in the blank affcfc
fill in the blank affcfc
fill in the blank affcfc
Total cash receipts $fill in the blank affcfc
$fill in the blank affcfc
$fill in the blank affcfc
$fill in the blank affcfc
Feedback Area
Feedback
Use the credit sales calculated in Requirement to determine cash receipts for the coming year. Apply the percentages given to the applicable quarter.
Question Content Area
What if the recession led Shalimar's top management to assume that in the next year percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
Shalimar Company
Cash Receipts Budget
For the Coming Year
Quarter Quarter Quarter Quarter
Cash sales $fill in the blank ebfefbdfc
$fill in the blank ebfefbdfc
$fill in the blank ebfefbdfc
$fill in the blank ebfefbdfc
Received on account from:
Quarter current year fill in the blank ebfefbdfc
Quarter next year fill in the blank ebfefbdfc
fill in the blank ebfefbdfc
Quarter next year fill in the blank ebfefbdfc
fill in the blank ebfefbdfc
Quarter next year fill in the blank ebfefbdfc
fill in the blank ebfefbdfc
Quarter next year fill in the blank ebfefbdfc
Total cash receipts $fill in the blank ebfefbdfc
$fill in the blank ebfefbdfc
$fill in the blank ebfefbdfc
$fill in the blank ebfefbdfc
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