wala Lotus 100% v R23 $ %0.00 123 Default (Ca. | 11 BI&A fx D Billie Jo Electronics Company's actual sales and purchases for April and May are shown below along with forecasted sales and purchases for sure through September A B H 3 4 5 0 2 B 9 10 April May June July August September Sales 320000 300000 275000 275000 290000 330000 Purchases 130000 120000 120000 180000 200000 170000 11 12 13 14 15 16 17 10 Every month the company makes 10% of its sales for cash and 90% of its sales on credit, of the credit sales, 20% are collected in the month after the sale and 80% are collected 2 months after the sale Bille Jo pays for 40% of its purchases in the month after purchase. Billie Jo pays for 60% of its purchases 2 months after purchase. Labor expense equals 10 percent of the current month's sales, Overhead expense equals $12,000 per month interest Expense payments of $30,000 are paid in June and September, A cash dividend of $50,000 will be paid in June. Tax payments of $25,000 will be paid in June and September. Billie lo will be replacing a machine in September and they expect to pay $300,000 in September, Balle Jo's Ending cash balance in May is $20,000. 23 Instructions: PART 1 - NN A cash dividend of $50,000 will be paid in June. Tax payments of $25,000 will be paid in June and September Billie Jo will be replacing a machine in September and they expect to pay $300,000 in September Billie Jo's Ending cash balance in May is $20,000. 24 25 26 27 28 29 30 31 Instructions: COMPLETE THE CASH RECEIPTS, CASH DISBURSEMENTS AND CASH BUDGET BELOW. FILL IN THE MISSING AMOUNTS IN THE YELLOW SHADED BOXES. SHOW YOUR CALCULATIONS. UPON COMPLETING THE SCHEDULES AND CASH BUDGET, ANSWER THE QUESTIONS FOR EXTRA CREDIT, Cash Receipts Schedule: 32 33 34 35 36 April May June July August September $ 320,000$ 300,000 $275,000 $ 275,000 $ 290,000 $ 330,000 Sales 30 Cash Sales (10%) Credit Sales (90%) Collections (month after sale (20%) Collections (2 months after sale (80%) Total Cash Receipts $ 32,000 $30,000 S 27,500 $ 27,500 $ 29,000 $ 288,000 270,000 247,500 247,500 261,000 57,600 54,000 49,500 49,500 230,400 216,000 198,000 311,900 293,000 276,500 33,000 297,000 52,200 198,000 283,200 19 20 41 15 Cash Payments Schedule: April May June July August September PARTI 1 ML 100% $ *. 123- Default (Co- 11 R23 BI&A D 38 F G B Collections (month after sale (20%) Collections (2 months after sale (80%) Total Cash Receipts E 57,600 . 54,000 230,400 311,900 49,500 216,000 293,000 49,500 198,000 276,500 52,200 198,000 283,200 43 44 45 Cash Payments Schedule: 46 47 Purchases May IR 50 51 Payments (40% month after purchase) Payments (60% - 2 months after purchase) Labor expense (10% of sales) Overhead Interest Payments Cash Dividend Taxes Capital Outlay - New Machine Total Cash Payments April June July August September $ 130,000 $ 120,000 $120,000 $ 180,000 $ 200,000 $ 170,000 $ 52,000 $ 48,000 $ 48,000 $72,000 $ 80,000 78,000 72,000 72,000 108,000 27,500 27,500 29,000 33,000 12,000 12,000 12,000 12,000 30,000 30,000 50,000 25,000 25,000 3,000,000 $ 270,500 $ 159,500 $ 185,000 $588,000 54 56 59 60 Cash Budget 20,000 June 50,000 July 50,000 August 50,000 September TOTAL Cash Receipts [from schedule above) PART II - M 55 56 Taxes Capital Outlay - New Machine Total Cash Payments 25,000 25.000 3,000,000 $ 270,500 $ 159,500 $ 185,000 $ 588.000 Cash Budget: 50,000 59 60 61 62 63 20,000 June July 50,000 50,000 August September TOTAL Cash Receipts (from schedule above) TOTAL Cash Payments (from schedule above) Net Cash Flow Cumulative Cash Flow 64 65 66 67 68 59 EXTRA CREDIT - EACH QUESTION IS WORTH 5 POINTS 1. What month yields the highest net cash flow? 2. What month yields the lowest net cash flow? 3. Are there any months where the cumulative cash flow goes below zero? If so, what does this mean? Is there a solution or a set of options to correct this problem? 70 72 ma 74 75 76 PART