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mdavis601
Jul 24, 2014, 07:07 PM
• Hoyt, Inc. cash collection schedule is as follows: 60% of sales in the current quarter, 40% in the 1st quarter after sale.
• Purchases from suppliers in a quarter are equal to 50% of the next quarter’s forecasted sales. (accounts payable)
• Suppliers are normally paid in 50% in the quarter purchases are made and 50% in the following quarter.
• Sales for the 1st quarter next year are projected to be $230.


I am confused about the above things and where they go on the cash budget.

• Hoyt, Inc. cash collection schedule is as follows: 60% of sales in the current quarter, 40% in the 1st quarter after sale.
• Purchases from suppliers in a quarter are equal to 50% of the next quarter’s forecasted sales. (accounts payable)
• Suppliers are normally paid in 50% in the quarter purchases are made and 50% in the following quarter.
• Sales for the 1st quarter next year are projected to be $230.


I am confused about the above things and where they go on the cash budget.