Cash budget-what are the expected cash receipts

Assignment Help Financial Management
Reference no: EM131554704

Songforth Inc. is preparing its cash budget. It expects to have sales of $600,000 in January, $650,000 in February, $670,000 in March, and $700,000 in April. If 25% of sales are for cash, 30% are credit sales paid in the month after the sale, and another 43% are credit sales paid 2 months after the sale, and 2% are never collected, what are the expected cash receipts for March?

Reference no: EM131554704

Questions Cloud

Using theta-how this out of the money option strategy : Explain, using Theta, how this out of the money option strategy is losing value from the poitn of purchase.
What was its average receivables balance : Martini’s days sales outstanding was DSO = 48 days. What was its average receivables balance, based on a 365-day year?
What is equivalent annual annuity for each machine : Filkins Fabric Company is considering the replacement of its old, fully depreciated knitting machine. What is the equivalent annual annuity for each machine?
What are the internal rates of return on projects : What are the internal rates of return on projects A and B?
Cash budget-what are the expected cash receipts : Songforth Inc. is preparing its cash budget. what are the expected cash receipts for March?
Unhedged bond fund or hedged bond fund : you can choose to invest in either an UNHEDGED BOND FUND or a HEDGED BOND Fund.
What events necessitated the passage the sarbanes-oxley act : What is the purpose of a budget and what are the components? What events necessitated the passage the Sarbanes-Oxley Act?
How has it performed in terms of the euro : How has the MSCI World Index performed in dollar terms since 2010 until 2016. How has it performed in terms of the euro?
New branch as result of favorable business : NWA inc hopes to start a new branch as a result of favorable business.

Reviews

Write a Review

Financial Management Questions & Answers

  What return did you earn

You invested $2,000 in the stock market one year ago. Today, the investment is valued at $1,720. What return did you earn? What return would you need to get next year to break even overall?

  How many units were produced

The direct materials quantity variance was $750 unfavorable and the direct materials price variance was $3,000 favorable. How many units were produced?

  Which furnace should si choose-annual maintenance costs

Springfield Ironworks (SI) recently had their furnace break down and they need to quickly purchase a new one to minimize the disruption in their production. They can either choose a high quality furnace (H) that costs $130,000 with $4,000 of annual m..

  Evaluating potential lease for truck with four year life

Dakota Trucking Company (DTC) is evaluating a potential lease for a truck with a 4-year life that costs $40,000 and falls into the MACRS 3-year class.

  Describe how forecasting can effect short and long term goal

describe how forecasting can effect the short and long term goals of the organization.

  What is the firms effective cost of borrowing

ABC Company has an average collection period of 36 days and factors all of its receivables immediately at a 1.2 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing?

  Review an overview of the master budgeting process

Critically assess the assumptions the controller gave you to develop the master budget. To prepare for this step, you should review the basics of budgeting - why the actual results differ from expected. Be specific about the impact of the economy a..

  What is new price per share of the existing shares of stock

What is the current price per share of the stock? How many shares of stock must be sold? What is the new price per share of the existing shares of stock?

  Construct a growth return profile for the current year

In 2011, analysts were forecasting EPS to be $33.94 for the year.  -what conclusions do you arrive at pricing Google relative to the market as a whole looking forward?

  What was the total dollar sales of cassettes alone

What was the total dollar sales of cassettes alone?

  Experiencing rapid growth

Momsen Corp. is experiencing rapid growth. Dividends are expected to grow at 28 percent per year during the next three years, 18 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 10 percen..

  What is the estimated value of the erosion cost

Foamsoft sells customized boat shoes. Currently, it sells 16,850 pairs of shoes annually at an average price of $79 a pair. It is considering adding a lower-priced line of shoes but will sell for $49 a pair. Foamsoft estimates it can sell 5,000 pairs..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd