Schedule of Cash Collections of Accounts Receivable Innovative Office Inc. has "cash and carry customers and credit customers. Innovative Office estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 75% pay their accounts in the month of sale, while the remaining 25% pay their accounts in the month following the month of sale. Projected sales for the first three months of 2014 are as follows: January $1,200,000 February 1,450,000 March 1,600,000 The Accounts Receivable balance on December 31, 203, was $180,000 Prepare a schedule of cash collections from sales for January, February, and March. INNOVATIVE OFFICE INC. Schedule of Collections from Sales For the Three Months Ending March 31, 2014 January February Receipts from cash sales: Cash sales $ 360,000 $ 435,000 $ December sales on account: Collected in January January sales on account: Collected in January 480,000 Collected in February February sales on account: Collected in February Collected in March March sales on account: Collected in March Add each month's cash sales to January February, and March collections Next > Check My Work Schedule of Cash Payments Tadpole Learning Systems Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $120,000 April 140,000 May 160,000 Depreciation, Insurance and property taxes represent $10,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in November Seventy percent of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May. Enter all amounts as positive numbers TADPOLE LEARNING SYSTEMS INC. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March March expenses Paid in March Paid in April April expenses Pald in April PadM PM Calculate cash payments in March, ford and Mar. Schedule of Cash Payments Organic Physical Therapy Inc. is planning its cash payments for operations for the three months ending March 31. The Accrued Expenses Payable balance on January 1 is $12,000. The budgeted expenses for the next three months are as follows: January February March Salaries $40,000 $60,000 $45,000 12,000 Utilities 10,000 15,000 Other operating expenses 7,000 8,000 9,000 Total $57,000 $65,000 $84,000 Other operating expenses indude $2,000 of monthly depreciation expense and $1,000 of monthly insurance expense that was prepaid in the prior year. Of the remaining expenses, 75% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December Prepare a schedule of cash payments for operations for January February, and March Enter all amounts as positive numbers. ORGANIC PHYSICAL THERAPY INC. Schedule of Cash Payments for Operations For the Three Months Ending March 31 January Payments of prior month's expenses Payment of current month's expense Total payment Capital Expenditures Budget On August 1, 2014, the controller of Handy Dan Tools Inc. is planning capital expenditures for the years 20Y5-2018. The controller interviewed several Handy Dan executives to collect the necessary information for the capital expenditures budget. Excerpts of the interviews are as follows: Director of Facilities: A construction contract was signed in May 2014 for the construction of a new factory building at a contract cost of $9,000,000. The construction is scheduled to begin in 2045 and completed in 2016. Vice President of Manufacturing: Once the new factory building is finished, we plan to purchase $3.6 million in equipment in late 2016. I expect that an additional $500,000 will be needed early in the following year (2097) to test and install the equipment before we can begin production. If sales continue to grow, I expect we'll need to invest another half million in equipment in 20Y8. Vice President of Marketing: We have really been growing lately. I wouldn't be surprised if we need to expand the size of our new factory building in 2048 by at least 25%. Fortunately, we expect inflation to have minimal impact on construction costs over the next four years. Additionally, I would expect the cost of the expansion to be proportional to the size of the expansion. Director of Information Systems: We need to upgrade our information systems to wireless network technology. It doesn't make sense to do this until after the new factory building is completed and producing product. During 2017, once the factory is up and running, we should equip the whole facility with wireless technology. I think it would cost us $400,000 today to install the technology. However, prices have been dropping by 10% per year, so it should be less expensive at a later date. President: I am excited about our long-term prospects. My only short-term concern is financing the $5,000,000 of construction costs on the portion of the new factory building scheduled to be completed in 2015. Use the interview information above to prepare a capital expenditures budget for Handy Dan Tools Inc, for the years 2015-20Y8. If an amount box does not require an entry, leave it blank. Enter all amounts as positive numbers. HANDY DAN TOOLS INC. Capital Expenditures Budget For the Four Years Ending December 31, 2045 2048 2045 2046 Building Equipment Information systems Total