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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 1 $4,600,000
Quarter 25,100,000
Quarter 35,000,000
Quarter 47,600,000
In Shalimar's experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $4,900,000 and for the fourth quarter of the current year are $6,850,000.
Required:
Question Content Area
1. 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
3, current year $fill in the blank ad44bf006009fc7_1
490,000
$fill in the blank ad44bf006009fc7_2
4,410,000
4, current year fill in the blank ad44bf006009fc7_3
685,000
fill in the blank ad44bf006009fc7_4
6,165,000
1, next year fill in the blank ad44bf006009fc7_5
460,000
fill in the blank ad44bf006009fc7_6
4,140,000
2, next year fill in the blank ad44bf006009fc7_7
510,000
fill in the blank ad44bf006009fc7_8
3, next year fill in the blank ad44bf006009fc7_9
500,000
fill in the blank ad44bf006009fc7_10
4,500,000
4, next year fill in the blank ad44bf006009fc7_11
760,000
fill in the blank ad44bf006009fc7_12
6,840,000
Feedback Area
Feedback
Apply the percentages given to the applicable quarter.
Question Content Area
2. 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 "0".
Shalimar Company
Cash Receipts Budget
For the Coming Year
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Cash sales $fill in the blank 9a8763f60fc1fc7_1
460,000
$fill in the blank 9a8763f60fc1fc7_2
510,000
$fill in the blank 9a8763f60fc1fc7_3
500,000
$fill in the blank 9a8763f60fc1fc7_4
760,000
Received on account from:
Quarter 3, current year fill in the blank 9a8763f60fc1fc7_5
Quarter 4, current year fill in the blank 9a8763f60fc1fc7_6
fill in the blank 9a8763f60fc1fc7_7
Quarter 1, next year fill in the blank 9a8763f60fc1fc7_8
2,691,000
fill in the blank 9a8763f60fc1fc7_9
1,035,000
fill in the blank 9a8763f60fc1fc7_10
Quarter 2, next year fill in the blank 9a8763f60fc1fc7_11
fill in the blank 9a8763f60fc1fc7_12
fill in the blank 9a8763f60fc1fc7_13
Quarter 3, next year fill in the blank 9a8763f60fc1fc7_14
fill in the blank 9a8763f60fc1fc7_15
Quarter 4, next year fill in the blank 9a8763f60fc1fc7_16
fill in the blank 9a8763f60fc1fc7_17
fill in the blank 9a8763f60fc1fc7_18
fill in the blank 9a8763f60fc1fc7_19
Total cash receipts $fill in the blank 9a8763f60fc1fc7_20
$fill in the blank 9a8763f60fc1fc7_21
$fill in the blank 9a8763f60fc1fc7_22
$fill in the blank 9a8763f60fc1fc7_23
Feedback Area
Feedback
Use the credit sales calculated in Requirement 1. to determine cash receipts for the coming year. Apply the percentages given to the applicable quarter.
Question Content Area
3. What if the recession led Shalimar's top management to assume that in the next year 10 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 1 Quarter 2 Quarter 3 Quarter 4
Cash sales $fill in the blank 9e44b8fe0fbdf8c_1
460,000
$fill in the blank 9e44b8fe0fbdf8c_2
510,000
$fill in the blank 9e44b8fe0fbdf8c_3
500,000
$fill in the blank 9e44b8fe0fbdf8c_4
760,000
Received on account from:
Quarter 4, current year fill in the blank 9e44b8fe0fbdf8c_5
Quarter 1, next year fill in the blank 9e44b8fe0fbdf8c_6
fill in the blank 9e44b8fe0fbdf8c_7
Quarter 2, next year fill in the blank 9e44b8fe0fbdf8c_8
fill in the blank 9e44b8fe0fbdf8c_9
Quarter 3, next year fill in the blank 9e44b8fe0fbdf8c_10
fill in the blank 9e44b8fe0fbdf8c_11
Quarter 4, next year fill in the blank 9e44b8fe0fbdf8c_12
Total cash receipts $fill in the blank 9e44b8fe0fbdf8c_13
$fill in the blank 9e44b8fe0fbdf8c_14
$fill in the blank 9e44b8fe0fbdf8c_15
$fill in the blank 9e44b8fe0fbdf8c_16

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