Please help.
*Problem 5-35 Sheffield Products, e rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm's marketing director, has completed the following sales forecast. Month January February March Apri May June Sales $908,200 $1,006,200 $908,200 $1,151,400 $1,257,900 $1,406,800 Month July August September October November December Sales $1,502,500 $1,502,500 $1,605,300 $1,605,300 $1,502,500 $1,700,400 Phillip Smith, an accountant in the Planning and Budgeting Department is responsible for preparing the cash flow project an. He has gathered the following information. . All sales are made on credit Sheffield's excellent record in accounts receivable collection is expected to continue, with 50% af billings collected in the month after sale and the remaining 40% collected two months after the sale. Cost of goods sold, Sheffield's largest expense, is estimated to equal 40% afsalus dollars. Seventy percent af inventory is purchased one month priarte sale and 30% during the month of sale. For example, in April, 30% of April cast af goods sold is purchased and 70% of May cost of goods sold is purchased. All purchases are made an account. Historically, 75% of accounts payable have been paid during the month of purchase, and the remaining 25% in the month following purchase. Hourly wages and fringe benefits, estimated at 309 of the current month's sales, are paid in the month incurred. . General and administrative expenses are projected to be S1,562,000 for the year. A breakdown of the expenses follows. All expenditures are paid monthly throughout the year, with the exception of property taxes, which are paid in faur equal installments at the end of each quarter. S Salaries and fringe benefits Advertising Property taxes Insurance uli Depreciation Tatal 321,100 374,100 143,500 193,500 181,100 348,300 $ 1,562,000 Operating income for the first quarter of the coming year is projected to be $329,200. Sheffield is subject to a 10% tax rete. The company peys 100% of its estimated texes in the month following the end of each quarter. Sherfield maintains a minimum cash balance or $50,000. If the cash balance is less than 350.000 at the end of the month, the company borrows against its 12% line of credit in order to maintain the balance. All borrowings are made at the beginning of the month, and all repayments are made at the end of the month (in increments of $1.001). Accrued interest is paid in full with each prindpal repayment. The projected cash balance an April 1 is $58,100. Your answer is partially correct. Try again. Prepare the cash receipts budget for the second quarter. (Enter answers In necessary fields only. Leave other flelds blank. Do not enter O.) Cash Receipts Budget May June April Total Cash Receipts February sales 363280 363280 Merch sales April Sales Mey sales Totals 908200 || 1093320 Accounts Receivable balance at the end of second quarter of 2015 $
