Forecast Sales

$$3,472,000$

$3,720,000$

$3,472,000$

$3,968,000$

$4,340,000$

$4,712,000$

Month

July

August

September

October

November

December

Forecast Sales

$4,960,000$

$4,960,000$

$5,208,000$

$5,208,000$

$4,960,000$

$5,456,000$

Shamrock Instruments, a rapidly expanding electronic parts distributor, is formulating its plans for $2022.$ Matthew Young, the firm's

director of marketing, has completed his $2022$ forecast and is confident that the company will meet or exceed sales estimates. The

following sales figures show the growth that is expected and are the basis for planning in the other corporate departments:

Month

January

February

March

Apr$$l

May

June

James King, assistant controller, is responsible for the cash flow projection, a critical element during a period of rapid expansion. She

will use the following information in preparing her cash analysis:

Shamrock has experienced an excellent record in accounts receivable collection and expects this trend to continue. The

company collects $50\%$ of billings in the month after the sale and $50\%$ in the second month after the sale. Uncollectible

accounts are nominal and can be ignored in the analysis.

The purchase of electronic parts is Shamrock's largest expenditure; the cost of these items is equal to $60\%$ of sales. Shamrock

receives $40\%$ of the parts one month before it sells them and $60\%$ during the month of sale.

Historically, Shamrock has cleared $60\%$ of the accounts payable one month after it receives its purchases, and the remaining

$40\%$ two months after.

Hourly wages, including fringe benefits, depend on the sales volume; they are equal to $20\%$ of the current month's sales. The

company pays these wages in the month incurred.

General and administrative expenses are projected to be $$3,410,000$ for $2022.$ The composition of these expenses is given

below. The company incurs all of these expenses uniformly throughout the year, except for property taxes. It pays the

property taxes in four equal instalments in the last month of each quarter:

$1$

$2.$

$3$

$4$

$5.$

Salaries

Promotion

Property taxes

Insurance

Utilities

Depreciation

$$607,600$

$830,804$

$309,996$

$458,800$

$434,000$

$768,800$

$$3,410,000$Forecast Sales

$$3,472,000$

$3,720,000$

$3,472,000$

$3,968,000$

$4,340,000$

$4,712,000$

Month

July

August

September

October

November

December

Forecast Sales

$4,960,000$

$4,960,000$

$5,208,000$

$5,208,000$

$4,960,000$

$5,456,000$

Shamrock Instruments, a rapidly expanding electronic parts distributor, is formulating its plans for $2022.$ Matthew Young, the firm's

director of marketing, has completed his $2022$ forecast and is confident that the company will meet or exceed sales estimates. The

following sales figures show the growth that is expected and are the basis for planning in the other corporate departments:

Month

January

February

March

Apr$$l

May

June

James King, assistant controller, is responsible for the cash flow projection, a critical element during a period of rapid expansion. She

will use the following information in preparing her cash analysis:

Shamrock has experienced an excellent record in accounts receivable collection and expects this trend to continue. The

company collects $50\%$ of billings in the month after the sale and $50\%$ in the second month after the sale. Uncollectible

accounts are nominal and can be ignored in the analysis.

The purchase of electronic parts is Shamrock's largest expenditure; the cost of these items is equal to $60\%$ of sales. Shamrock

receives $40\%$ of the parts one month before it sells them and $60\%$ during the month of sale.

Historically, Shamrock has cleared $60\%$ of the accounts payable one month after it receives its purchases, and the remaining

$40\%$ two months after.

Hourly wages, including fringe benefits, depend on the sales volume; they are equal to $20\%$ of the current month's sales. The

company pays these wages in the month incurred.

General and administrative expenses are projected to be $$3,410,000$ for $2022.$ The composition of these expenses is given

below. The company incurs all of these expenses uniformly throughout the year, except for property taxes. It pays the

property taxes in four equal instalments in the last month of each quarter:

$1$

$2.$

$3$

$4$

$5.$

Salaries

Promotion

Property taxes

Insurance

Utilities

Depreciation

$$607,600$

$830,804$

$309,996$

$458,800$

$434,000$

$768,800$

$$3,410,000$