Coronaco nstruments, a rapidy cepanding clectronic parts distritutor, is in the prosess af farm.ilating plars ar next year. Bill Stacktar, the firm's director of marketiog. has campleted his sales farecast and is confident that sales estimstes will be met or Samartha Carisen. assistant contraller, tas beun ziven she responsibility for formulating the cash flow projection, a critical element during a period of rapid exparsion. The fallewing information will bu used in preparing the cash analysis. 1 Corcoado has cxperienced an cxcellent record in acenunts reccivable callectian and cxpects this trend to continue, bcek at b lings are collected in the manth after the sale and 40% in the secand manth arter the sale. Uncolectibles are naminal and can be ignored in the soalysis the parta are reccived by Corenado coe manth prior ta sale and 4Ck are received during the month of sale 3. Historically, go:s of acccunts payable hawe been cleared ay Caronado one month after receipt of purchased parts and the remaining 20% have teen cleared two months after receipt. These wages are pa; in the manth incurred 5. Gerers ard administrative expenses are projected to be $2,904,000 for the next period. These include $468.000 in salseies, 3636000 an prechuct promotiurs, $204,000 in peoperty taxes, 5444000 for insurarte, 5384,000 in atilities, and taxce are zaid in tour equal installmonts in the tast manth of each calendar quacter. 6. Coronado makes income tax pyyments in the first month af each quarter based on the income far the arior quarter. Corvelado is subject to an effective income fax rate of 40%. Coromatos pretax income for the first quarter af the rext year is projerted to he $630000 manthly, 25 necessary to maintsin this balance, sure that all receipte, dieaursemente, and barrowingyirwesting are presented an a monthly bagis, Ignore the interest wagenac andior incame agsozisted with berrawinginvesti7g. (Enter negative omounts using either a negative sign preceding the number e.g. 45 or parentheses eg. (45). Coronaco nstruments, a rapidy cepanding clectronic parts distritutor, is in the prosess af farm.ilating plars ar next year. Bill Stacktar, the firm's director of marketiog. has campleted his sales farecast and is confident that sales estimstes will be met or Samartha Carisen. assistant contraller, tas beun ziven she responsibility for formulating the cash flow projection, a critical element during a period of rapid exparsion. The fallewing information will bu used in preparing the cash analysis. 1 Corcoado has cxperienced an cxcellent record in acenunts reccivable callectian and cxpects this trend to continue, bcek at b lings are collected in the manth after the sale and 40% in the secand manth arter the sale. Uncolectibles are naminal and can be ignored in the soalysis the parta are reccived by Corenado coe manth prior ta sale and 4Ck are received during the month of sale 3. Historically, go:s of acccunts payable hawe been cleared ay Caronado one month after receipt of purchased parts and the remaining 20% have teen cleared two months after receipt. These wages are pa; in the manth incurred 5. Gerers ard administrative expenses are projected to be $2,904,000 for the next period. These include $468.000 in salseies, 3636000 an prechuct promotiurs, $204,000 in peoperty taxes, 5444000 for insurarte, 5384,000 in atilities, and taxce are zaid in tour equal installmonts in the tast manth of each calendar quacter. 6. Coronado makes income tax pyyments in the first month af each quarter based on the income far the arior quarter. Corvelado is subject to an effective income fax rate of 40%. Coromatos pretax income for the first quarter af the rext year is projerted to he $630000 manthly, 25 necessary to maintsin this balance, sure that all receipte, dieaursemente, and barrowingyirwesting are presented an a monthly bagis, Ignore the interest wagenac andior incame agsozisted with berrawinginvesti7g. (Enter negative omounts using either a negative sign preceding the number e.g. 45 or parentheses eg. (45)
