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    mdavis601 Posts: 1, Reputation: 1
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    Jul 24, 2014, 07:07 PM
    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.

    • 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.

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