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eBook Question Content Area Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted

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Question Content Area
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 $4,720,000
Quarter 25,700,000
Quarter 31,970,000
Quarter 47,740,000
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 $5,620,000 and for the fourth quarter of the current year are $7,620,000.
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 53397c019f7f01f_1
$fill in the blank 53397c019f7f01f_2
4, current year fill in the blank 53397c019f7f01f_3
fill in the blank 53397c019f7f01f_4
1, next year fill in the blank 53397c019f7f01f_5
fill in the blank 53397c019f7f01f_6
2, next year fill in the blank 53397c019f7f01f_7
fill in the blank 53397c019f7f01f_8
3, next year fill in the blank 53397c019f7f01f_9
fill in the blank 53397c019f7f01f_10
4, next year fill in the blank 53397c019f7f01f_11
fill in the blank 53397c019f7f01f_12
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 866f2e08300cfc9_1
$fill in the blank 866f2e08300cfc9_2
$fill in the blank 866f2e08300cfc9_3
$fill in the blank 866f2e08300cfc9_4
Received on account from:
Quarter 3, current year fill in the blank 866f2e08300cfc9_5
Quarter 4, current year fill in the blank 866f2e08300cfc9_6
fill in the blank 866f2e08300cfc9_7
Quarter 1, next year fill in the blank 866f2e08300cfc9_8
fill in the blank 866f2e08300cfc9_9
fill in the blank 866f2e08300cfc9_10
Quarter 2, next year fill in the blank 866f2e08300cfc9_11
fill in the blank 866f2e08300cfc9_12
fill in the blank 866f2e08300cfc9_13
Quarter 3, next year fill in the blank 866f2e08300cfc9_14
fill in the blank 866f2e08300cfc9_15
Quarter 4, next year fill in the blank 866f2e08300cfc9_16
fill in the blank 866f2e08300cfc9_17
fill in the blank 866f2e08300cfc9_18
fill in the blank 866f2e08300cfc9_19
Total cash receipts $fill in the blank 866f2e08300cfc9_20
$fill in the blank 866f2e08300cfc9_21
$fill in the blank 866f2e08300cfc9_22
$fill in the blank 866f2e08300cfc9_23
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 37fb17f91feefb3_1
$fill in the blank 37fb17f91feefb3_2
$fill in the blank 37fb17f91feefb3_3
$fill in the blank 37fb17f91feefb3_4
Received on account from:
Quarter 4, current year fill in the blank 37fb17f91feefb3_5
Quarter 1, next year fill in the blank 37fb17f91feefb3_6
fill in the blank 37fb17f91feefb3_7
Quarter 2, next year fill in the blank 37fb17f91feefb3_8
fill in the blank 37fb17f91feefb3_9
Quarter 3, next year fill in the blank 37fb17f91feefb3_10
fill in the blank 37fb17f91feefb3_11
Quarter 4, next year fill in the blank 37fb17f91feefb3_12
Total cash receipts $fill in the blank 37fb17f91feefb3_13
$fill in the blank 37fb17f91feefb3_14
$fill in the blank 37fb17f91feefb3_15
$fill in the blank 37fb17f91feefb3_16Construct 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
$
$
$
$
Received on account from:
Quarter 3, current year
Quarter 4, current year
Quarter 1, next year
Quarter 2, next year
Quarter 3, next year
Quarter 4, next year
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