EX.08.21

Schedule of Cash Receipts Rosita Fiores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near campus and severat hatets. Rosita accepts cash and checks. checks are deposited immediately. The bank charges $0,50 per check; the amount per check averages $75, "Bad" checks that Rosita cannot collect make up 3 percent of check revenus. During a typical month, Rosita's has sales of $45,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows: Rosita thinks that it may be time to refuse to accept checks atid to start accepting credit cards. She is negotiating with VisAMasterCard and American Express, and she would start the new policy on April 1. Rosita estimates that with the drop in sales from the "no checks" policy and the increase in sales from the acceptance of credit cards, the net increase in sales will be 30 percent, The credit cards do involve added costs as follows: VISAMasterCard: Rosita will accumulate these credit card receipts throughout the month and submit them in one bundie for payment on the last day of the month. Themoney will be credited to her account by the fifth day of the following month. A fee of 3.5 percent is charged by the credit card company. American Express: Rosita wilt accumulate these receipts throughout the month and send them to American Express for payment on the last day of the month. American Express will credit her account by the sixth day of the following month. A fee of 5.5 percent is charged by American Expressi Rosita estimates the following breakdown of revenues among the various payment methods. Required: Rosita thinks that it may be time to refuse to accept checks and to start occepting credit cards. She is negotiating with VisAMasterCard and American Express, and she would start the new policy on Aprit 1. Rosita estimates that with the drop in sales from the "no checks" policy and the increase in sales fram the acceptance of credit cards, the net increase in sales will be 30 percent. The credit cards do involve added costs as follows: VISA/MasterCard: Rosita will accumulate these credit card receipts throughout the month and submit them in one bundie for payment on the last day of the month. The money will be credited to her account by the fifth day of the following month. A fee of 3.5 percent is charged by the credit card company. American Express: Rosita will accumulate these receipts throughout the month and send them to American Express for payment on the last day of the month. American Express will credit her account by the slath day of the following month. A fee of 5.5 percent is charged by American Express. Rosita estimates the following breakdown of revenues among the various payment methods. Required: Prepare a schedule of cash receipts for May and June that incorporates the changes in policy. Round your intermediate computations and final answers to the nearest dollar