Question
Use the following data to calculate Cash collections and cash disbursements statement for Fun Toys Corporation: Expected sales by quarter (millions): Q1: $300; Q2: $350;
Use the following data to calculate Cash collections and cash disbursements statement for Fun Toys Corporation:
- Expected sales by quarter (millions):
Q1: $300; Q2: $350; Q3: $200; Q4: $500
- Beginning accounts receivable = $100
- Collections = Beginning receivables + 80% Sales
- Accounts payable = 50% of sales
- Wages, taxes, and other expenses = 10% of sales
- Interest and dividends = $10 million per quarter
- Major expansion planned for quarter 3 costing $100 million
- Beginning cash balance = $20 million with minimum cash balance of $10 million
Answer:
| Cash Collection | Q1 | Q2 | Q3 | Q4 |
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| Ending receivable |
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| Cash Disbursement | Q1 | Q2 | Q3 | Q4 |
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| Total Cash Disbursement |
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Handbook Of European Financial Markets And Institutions
Authors: Xavier Freixas, Philipp Hartmann, Colin Mayer
1st Edition
0199229953, 978-0199229956
