. Question 1 (28 marks) Lynne Co., a multi-million-dollar corporation, has accumulated operating data to prepare an annual profit plan. Details regarding Lynnes sales for the first six months of the calendar/fiscal year are as follows: Estimated Monthly Sales Type of Monthly Sales January $1,200,000 Cash Sales 20% Credit Sales 80% February 1,300,000 March 1,400,000 April 1,250,000 May 1,440,000 June 1,600,000 Collection pattern for credit sales Month of sales 30% One month following sale 40% Second month following sale 25% Lynnes cost of goods sold average 40% of the sales value. Lynnes objective is to maintain a target inventory equal to 30% of the next month's sales. Purchases of merchandise for resale are paid for in the month following the sale. The variable operating expenses (other than Cost of goods sold) for Lynne Co. are 10% of sales and are paid for in the month following the sale. The annual fixed operating expenses are presented below. All of these are incurred uniformly throughout the year and paid monthly except for insurance and property taxes. Insurance is paid quarterly in January, April, July and October. Property taxes are paid twice a year in April and October: Annual Fixed Operating Costs Advertising $1,440,000 Depreciation 840,000 Insurance 360,000 Property taxes 480,000 Salaries

a) ( 9 marks) Determine the amount of cash collected in March for Lynne Co. from the sales made during March. Show all calculations.

b) (5 marks) Determine Lynne Co. total cash receipts for the month of April. Show all calculations

c) (3 marks) Determine the merchandise purchases that Lynne Co. will need to make during February. Show all calculations.

d) (3 marks) Determine the amount for cost of goods sold that will appear on Lynne Co.s pro forma income statement for the month of February. Show all calculations

.e) (8 marks) Determine the total cash disbursements that Lynne Co. will make for the operating expenses during the month of April. Show all calculations.

Please Answer A, B, C, D, E separately