Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales:

Quarter $1$ $$4,640,000$

Quarter $25,870,000$

Quarter $35,510,000$

Quarter $48,390,000$

In Shalimar's experience, $10$ percent of sales are paid in cash. Of the sales on account, $65$ percent are collected in the quarter of sale, $25$ percent are collected in the quarter following the sale, and $7$ percent are collected in the second quarter after the sale. The remaining $3$ percent are never collected. Total sales for the third quarter of the current year are $$5,190,000$ and for the fourth quarter of the current year are $$7,490,000.$

Required:

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$1.$ Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year.

Quarter Cash Sales Credit Sales

$3,$ current year $fill in the blank $6618$fdf$9$bfd$5$fc$2\_1$

$519,000$

$fill in the blank $6618$fdf$9$bfd$5$fc$2\_2$

$4,671,000$

$4,$ current year fill in the blank $6618$fdf$9$bfd$5$fc$2\_3$

$749,000$

fill in the blank $6618$fdf$9$bfd$5$fc$2\_4$

$6,741,000$

$1,$ next year fill in the blank $6618$fdf$9$bfd$5$fc$2\_5$

$464,000$

fill in the blank $6618$fdf$9$bfd$5$fc$2\_6$

$4,176,000$

Correct

$2,$ next year fill in the blank $6618$fdf$9$bfd$5$fc$2\_7$

$587,000$

fill in the blank $6618$fdf$9$bfd$5$fc$2\_8$

$5,283,000$

$3,$ next year fill in the blank $6618$fdf$9$bfd$5$fc$2\_9$

$551,000$

fill in the blank $6618$fdf$9$bfd$5$fc$2\_10$

$4,959,000$

$4,$ next year fill in the blank $6618$fdf$9$bfd$5$fc$2\_11$

$839,000$

fill in the blank $6618$fdf$9$bfd$5$fc$2\_12$

$7,551,000$

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$2.$ Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. If an amount is zero, enter $"0".$

Shalimar Company

Cash Receipts Budget

For the Coming Year

Quarter $1$ Quarter $2$ Quarter $3$ Quarter $4$

Cash sales $fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_1$

$464,000$

$fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_2$

$587,000$

$fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_3$

$551,000$

$fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_4$

$839,000$

Received on account from:

Quarter $3,$ current year fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_5$

Quarter $4,$ current year fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_6$

fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_7$

Quarter $1,$ next year fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_8$

fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_9$

fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_10$

Quarter $2,$ next year fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_11$

fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_12$

fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_13$

Quarter $3,$ next year fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_14$

fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_15$

Quarter $4,$ next year fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_16$

$0$

fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_17$

$0$

fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_18$

$0$

fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_19$

Total cash receipts $fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_20$

$fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_21$

$fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_22$

$fill in the blank $741$d$9$cfc$4$fb$5$ff$5\_23$

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Use the credit sales calculated in Requirement $1.$ to determine cash receipts for the coming year. Apply the percentages given to the applicable quarter.

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$3.$ What if the recession led Shalimar's top management to assume that in the next year $10$ percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.

Shalimar Company

Cash Receipts Budget

For the Coming Year

Quarter $1$ Quarter $2$ Quarter $3$ Quarter $4$

Cash sales $fill in the blank $07$b$0$b$101706$d$047\_1$

$fill in the blank $07$b$0$b$101706$d$047\_2$

$fill in the blank $07$b$0$b$101706$d$047\_3$

$fill in the blank $07$b$0$b$101706$d$047\_4$

Received on account from:

Quarter $4,$ current year fill in the blank $07$b$0$b$101706$d$047\_5$

Quarter $1,$ next year fill in the blank $07$b$0$b$101706$d$047\_6$

fill in the blank $07$b$0$b$101706$d$047\_7$

Quarter $2,$ next year fill in the blank $07$b$0$b$101706$d$047\_8$

fill in the blank $07$b$0$b$101706$d$047\_9$

Quarter $3,$ next year fill in the blank $07$b$0$b$101706$d$047\_10$

fill in the blank $07$b$0$b$101706$d$047\_11$

Quarter $4,$ next year fill in the blank $07$b$0$b$101706$d$047\_12$

Total cash receipts $fill in the blank $07$b$0$b$101706$d$047\_13$

$fill in the blank $07$b$0$b$101706$d$047\_14$

$fill in the blank $07$b$0$b$101706$d$047\_15$

$fill in the blank $07$b$0$b$101706$d$047\_16$Feadback

T Check My Wark

Use the credit sales calculated in Requirement $1.$ to determine cash receipts for the coming year. Apply the percentages given to the applicable quarter.

quarter? Construct a revised cash budget using the new assumption.