RUTGENS UNIVERSITY FINANCE AND ACCOUNTING exam 2 summer 2014 SOLUTION TEN DOLLAR US/UK/UAE/AUSTRALIA COLLEGE NOTES ASSIGNMENT best college assignments solved Principles of Corporate Finance COMPLETE Solution manual - edition 12 - CH1 - CH33 (Br
Question 1 (10 marks): Prescher Company sells three products with the following seasonal sales pattern: Products Quarter A B C 1 40% 30% 10% 2 30% 20% 30% 3 20% 20% 50% 4 10% 30% 10% The annual sales budget shows forecasts for the different products and their expected selling price per unit to be as follows: Product Units Selling Price A 50,000 $ 16 B 125,000 40 C 62,500 24 Required: Prepare a sales budget, in units and dollars, by quarters for the company for the coming year. Question 2 (5 marks): Duffy Corporation has prepared the following sales budget: Month Cash Sales Credit Sales May $16,000 $68,000 June 20,000 80,000 July 18,000 74,000 August 24,000 92,000 September 22,000 76,000 Collections are 40% in the month of sale, 45% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be uncollectible. Required: Prepare a schedule of cash collections for July through September.
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