Crane Products, a rapidly growing distributor of home gardening equipment, is fo
ID: 2564364 • Letter: C
Question
Crane Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm’s marketing director, has completed the following sales forecast.
Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. He has gathered the following information.
April
May
June
Total Cash Receipts
February sales
March sales
April sales
May sales
Month Sales Month Sales January $903,800 July $1,501,000 February $1,001,200 August $1,501,000 March $903,800 September $1,604,500 April $1,150,300 October $1,604,500 May $1,252,100 November $1,501,000 June $1,407,500 December $1,700,900Explanation / Answer
April May June Total Cash Receipts February sales 400480 400480 March sales 542280 361520 903800 April sales 690180 460120 1150300 May sales 751260 751260 Total 942760 1051700 1211380 3205840 Accounts Receivable balance at the end of second quarter of 2015 =(1252100*40%)+1407500= 1908340