I'm trying to find...
I'm trying to find and complete the Schedule of Expected Cash Collections but my book doesn't really explain or give good solid examples
Tutor's Assistant: The Tutor can help you get an A on your homework or ace your next test. Tell me more about what you need help with so we can help you best.
This is my information for the questions: The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:
Current assets as of March 31:
Cash $ 8,000
Accounts receivable $ 20,000
Inventory $ 36,000
Building and equipment, net $ 120,000
Accounts payable $ 21,750
Capital stock $ 150,000
Retained earnings $ 12,250
a. The gross margin is 25% of sales.
b. Actual and budgeted sales data:
March (actual) $50,000
Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales.
d. Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold.
One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory.
Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation on new assets).
g. Equipment costing $1,500 will be purchased for cash in April.
Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.
Tutor's Assistant: The Tutor can help you get an A on your homework or ace your next business test. Is there anything else important you think the Tutor should know?
I really would just like an example of how to complete the schedule of Expected Collections and a few other examples. Possibly broken out step by step so that I can go back to the information I gave you above and learn the information. As it stands I am lost completely.