Discussion #$1..$For each dollar of sales, how much is expected to be collected?

Given:

$70\%$ of billings are collected during the billing month.

$80\%$ of the remaining balance is collectible in the next following month.

So$,$ for each dollar of sales:

$70\%$ will be collected during the billing month.

$30\%$ will remain.

$80\%$ of the remaining $30\%$ will be collected in the next following month.

$20\%$ of the remaining $30\%$ will be uncollectible.

The expected amount to be collected for each dollar of sales is$,$

Amount collected in billing month$=0\mathrm{.}70$

Amount collectible in next following month$=0\mathrm{.}30\backslash$times $0\mathrm{.}80=0\mathrm{.}24$

Total expected to be collected$=$Amount collected in billing month$+$ Amount collectible in next following month$=0\mathrm{.}70+0\mathrm{.}24=0\mathrm{.}94$

So$,$ for each dollar of sales, $$0\mathrm{.}94$ is expected to be collected.

b$)$ Estimate the monthly cash collections for June, July, August, and September.

Given:

Sales during June are $$4,500,000.$

Sales are expected to increase by $25\%$ in July.

August sales will be $5\%$ less than July sales.

First, let's calculate the sales for each month:

June sales: $$4,500,000$

July sales:

$$4,500,000\backslash$times $1\mathrm{.}25=$$$5,625,000$

August sales:

$$5,625,000\backslash$times $0\mathrm{.}95=$$$5,343,750$

Now, calculate the cash collections for each month based on the expected collection rate of $$0\mathrm{.}94$ per dollar of sales:

June cash collections:

$$4,500,000\backslash$times $$0\mathrm{.}94=$$$4,230,000$

July cash collections:

$$5,625,000\backslash$times $$0\mathrm{.}94=$$$5,287,500$

August cash collections:

$$5,343,750\backslash$times $$0\mathrm{.}94=$$$5,018,125$

c$)$ As of the end of August, how much will be the estimated amount of receivables for which future cash flows are anticipated?

calculate the amount of sales yet to be collected for August:

August sales: $$5,343,750$

August collections: $$5,018,125$

remaining balance expected to be collected in September would be:

Remaining balance for August $=$ August sales$$August collections

$=$$$5,343,750$$$5,018,125=$$$325,625$

As of the end of August, the estimated amount of receivables for which future cash flows are anticipated would be $$325,625.$

Discussion #$2$ January, February, and March for Global GPS Systems

January

February

March

Scheduled production

$24,000$

$39,750$

$23,850$

Raw materials needed:

$24,000$

$39,750$

$23,850$

Motors $(1$per unit$)$

Estimated cost per motor

$$150$

$$150$

$$150$

Total estimated motor cost$($A$)$

$$3,600,000$

$$5,962,500$

$3,577,500$

Batteries $(4$ per unit$)$

$96,000$

$159,000$

$95,400$

Plus: Target ending raw material$*$

$39,750$

$23,850$

$25,000$

Batteries needed

$135,750$

$182,850$

$120,400$

Less: Target beginning raw material

$(20,000)$

$(39,750)$

$(23,850)$

Fan battery purchases

$115,750$

$143,100$

$96,550$

Estimated cost per battery

$$3\mathrm{.}75$

$$3\mathrm{.}75$

$$3\mathrm{.}75$

Total estimated motor battery$($B$)$

$$434,063$

$$536,625$

$$362,063$

Total estimated costs $($computers $+$ batteries$)$

$($C$)=($A$+$B$)$

$$4,034,063$

$$6,499,125$

$$3,939,563$

Answer this qustion only $..$ Do a summary of what you learn about both post $?$