Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Prince Albert Corporation has forecast the following sales for the first seven months of the year. January February March April $18,000 20.000 22,000 28.000

image text in transcribed
image text in transcribed
image text in transcribed
The Prince Albert Corporation has forecast the following sales for the first seven months of the year. January February March April $18,000 20.000 22,000 28.000 Play June July 18,000 24,000 26,000 Monthly material purchases are set equal to 30 percent of forecasted soles for the next month of the total material costs, 40 percent are paid in the month of purchase and 60 percent are paid in the following month Labour costs will run $4.800 per month, and fixed overhead is $6,000 per month. Interest payments on the debt will be $3,800 for both March and June. Finally, the Prince Albert sales people will receive a 20 percent commission on total sales for the first six months of the year to be paid on June 30 Prepare a monthly summary of cash payments for the six months from January through June (Note: Compute prior December purchases to help get total material payments for January) Prince Albert Corporation Cash Payments Schedule December March January $ February $ April $ Sales Purchases Current month payment Prior month payment Total payment for materials Labour costs Fixed overhead Interest payments overhead is $6,000 per month Interest payments on the debt will be 53.800 for both March and June the Prince Albert Sales ne fonowing month Labour costs will run 54,800 per month and feed people will receive a 20 percent commission on total sales for the first six months of the year to be paid on June 10 Prepare a monthly summary of cash payments for the six months from January through June. Note Compute prior December purchases to help get total material payments for January) Prince Albert Corportion Cash Pants Schedule December January febre pril Sales $ $ Purchases Current month payment Prior month payment March $ Total payment for materials Labour costs Fxed overhead Interest payments Sales commission $ MAN Total cash payments ercent of forecasted sales for the next month of the total material costs, 40 percent tare paid in the following month Labour costs will run $4,800 per month, and fixed 3 on the debt will be $3,800 for both March and June. Finally, the Prince Albert sales total sales for the first six months of the year to be paid on June 30 the six months from January through June (Note: Compute prior December January) Prince Albert Corporation Cash Payments Schedule January February April March May June $ $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

American Public School Finance

Authors: William A. Owings, Leslie S. Kaplan

1st Edition

0495807834, 9780495807834

More Books

Students also viewed these Finance questions