What is the firms accounts receivable turnover

Assignment Help Corporate Finance

Reference no: EM131048447

Using the following information based on expected sales to forecast the monthly cash collections, accounts receivable balance, monthly cash disbursements, net cash flows, and cash surplus / deficit at the end of each month in the second quarter of 2016 (April - June 2016). Do not allow your firm to have a cash balance below the minimum cash balance and only borrow what you need.

a. All sales are made on credit. In March 2016, sales were $50,000. In April 2016, sales are expected to be $50,000. In May 2016, sales are expected to be $100,000. In June 2016, sales are expected to be $400,000.

b. The firm's total sales in 2015 were $2,028,000. The firm's accounts receivable balance on January 1, 2015 was $35,000. The firm's accounts receivable balance on December 31, 2015 was $65,000.

c. Accounts payable are 60% of sales

d. Operating expenses are 10% of sales

e. The firm plans to purchase equipment in April costing $125,000

f. Beginning Cash Balance = $25,000

g. Minimum Cash Balance = $5,000

h. Assume there is an annual interest rate of 24% on short term debt and that the firm starts with no short term borrowing.

Question 1

What is the firm's accounts receivable turnover?

Question 2

What is the firm's accounts receivable period?

Question 3

What is the firm's accounts receivable balance at the beginning of April 2016?

Question 4

What is the firm's total cash collections for the month of April 2016?

Question 5

What is the firm's total cash collections for the month of May 2016?

Question 6

What is the firm's total cash collections for the month of June 2016?

Question 7

What is the firm's total cash disbursements for the month of April 2016?

Question 8

What is the firm's total cash disbursements for the month of May 2016?

Question 9

What is the firm's total cash disbursements for the month of June 2016?

Question 10

What is the firm's short term debt at the end of April 2016?

Question 11

What is the firm's short term debt at the end of May 2016?

Question 12

What is the firm's short term debt at the end of June 2016?

Reference no: EM131048447

Questions Cloud

Write an essay to address your findings and recommendations : Write an essay to address your findings and recommendations, and provide applicable references as needed. This project should be at least three pages in length, and it should be created using APA style guidelines.

Develop a logical and congruent research proposal : Take any research question regarding nursing field or a situation of nurse patient in a hospital then conducted a study for making research proposal

Write a report about the companys stock : Each student will choose a publically traded corporation on either the NYSE or NASDAQ and write a 5+ page report about the company's stock. Including, years in business, current performance, how it compares to the competition etc.

Comment on control of short-term process variation : A cutting operation. A machine tool in your plant is cutting an outside diameter. A sample of 4 pieces is taken near the end of each hour of production. Table 27.7

What is the firms accounts receivable turnover : What is the firm's accounts receivable turnover? What is the firm's accounts receivable period? What is the firm's accounts receivable balance at the beginning of April 2016?

Calculate balance of direct materials control account : Given this incomplete information, complete the template below and calculate the beginning balance of the Direct Materials Control account

How the purchase of the new machinery affects the cash flow : You are required to make the adjustment for the New Machinery and prepare brief notes for your manager. The notes should answer the following questions: Explain how the purchase of the New Machinery affects the Cash Flow, and clearly state the pro..

Center lines and limits calculated from these past data : Hospital losses. Table 27.6 gives data on the losses (in dollars) incurred by a hospital in treating major joint replacement (DRG 209) patients.13 The hospital has taken from its records a random sample of 8 such patients each month for 15 months.

Build the spreadsheet model for three given option : build the spreadsheet model for three option. do not have to include sensitivity or breakeven. just do as much as you can thanks.

User Account

All Pages