4. The operating cycle of Amjad Co. is 120 days and its average collection period (ACP) is 30 days. of keeping at least RO 5,000 on hand as a minimum cash balance, and has a beginning cash balance 10,000. Beginning accounts receivables for the first quarter amount to RO 25,000. Sales for the first quarter decrease each quarter by 10%. The purchases amount represents 45% of the next quarter's forecast wages and other expenses is RO 7,000. The capital expenditure occurs in the second quarter and equ

4. The operating cycle of Amjad Co. is 120 days and its average collection period (ACP) is 30 days. of keeping at least RO 5,000 on hand as a minimum cash balance, and has a beginning cash balance 10,000. Beginning accounts receivables for the first quarter amount to RO 25,000. Sales for the first quarter decrease each quarter by 10%. The purchases amount represents 45% of the next quarter's forecast wages and other expenses is RO 7,000. The capital expenditure occurs in the second quarter and equ

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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Kamal Co. has an average collection period (ACP) of 30 days and an operating cycle of 170 days. It has a policy of keeping at least RO 15,000 on hand as a minimum cash balance, and has a beginning cash balance for the first quarter of RO 20,000. Beginning receivables for the first quarter amount to RO 30,000 Sales for the first second and the third quarters are expected respectively to be RO 100,000; RO120,000; and RO 150,000. The purchases amount represents 50% of the next quarter's forecasted sales. The quarterly wages and other expenses is RO 7,000. The capital spending occurs in the second quarter and equals to RO 15,000. The accounts payable period is 45 days. The beginning accounts payable is RO 10,000. A. What are cash collections in the first and second quarters? B. What are cash disbursements for the first and second quarters ? C. What is the cumulative surplus (deficit) at the end of the first and second quarters ?
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The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year: 01 Sales $ 330 Q2 $ 390 Beginning receivables Sales Cash collections Ending receivables a. Accounts receivable at the beginning of the year are $360. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Beginning receivables Sales Cash collections Ending receivables Q3 $ 450 Show Transcribed Text Beginning receivables Sales Cash collections Ending receivables Q1 Q1 Q1 330 04 $ 600 330 b. Accounts receivable at the beginning of the year are $360. The company has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. 330 Q2 Q2 Q2 390 390 390…
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The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year 01 02 04 Sales # 330 $390 a. Accounts receivable at the beginning of the year are $360. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Beginning receivables Sales Cash collections Ending receivables 03 $450 Beginning receivables Sales Cash collections Ending receivables S Beginning receivables Sales Cash collections Ending receivables 01 01 300 330 01 330 b. Accounts receivable at the beginning of the year are $360. The company has a 60-day collection period Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e-g.. 32. 02 330 02 390 Q² 390 03 350 03 450 03 c. Accounts…