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$1)$ Sales and Collection Budget $(10$ Points$)$

XYZ Company has provided the following information for the preparation of one part of the budget of the year ended December $31,2020.$

a$)$ The Company will sell the under mentioned quantities in each quarter of $2020$

$1$st Quarter $600$ items

$2$nd Quarter $900$ items

$3$rd Quarter $1200$ items

$4$th Quarter $1350$ items

b$)$ The selling price of each item will be $$100\mathrm{.}00$

c$)$ It is estimated that $2/3$ of sales will be collected in the same quarter and the remaining $1/3$ of sales will be collected in the following quarter

d$)$ The Company started the year $2020$ with $$20,000\mathrm{.}00$ and it is assumed this will be collected in the $1$st quarter of $2020.$

Required:

Prepare the Sales Budget and its Estimated Cash Collection from Sales of each quarter for the year ended December $31,2020.($Hint: check the sales budget for the Palm Plastic Plant of Chapter $3$ for your reference$)$

$2)$ Cash Flow Statement $(10$ Points$)$

The Net profit of company ABC is $$250,000$ at the end of December$31,2018.$ In addition, you have the following information during the year.

a$)$ Beginning Cash Balance was $$50,000$ for the year

b$)$ Depreciation expense of $$80,000$ is included in the SG & A expenses.

c$)$ Capital Expenditure is $$150,000$ During the year

d$)$ Long$-$term Bank Loan of $$100,000,$

e$)$ Repayment of loan of $$20000$ during the year

f$)$ Extracts from the Balance sheet of Both companies shows:

Increase in A$/$R $$80,000$

Decrease in Inventory $$70,000$

Decrease in A$/$P $$60,000$

Required:

Cash flow Statement of ABC Company as of December $31,2018$

$3)$ FCF and Cash Conversion Ratio $($ CCR$)(10$ points$)$

Sherburne Co$.$ information of its Income statement of $2020$ includes the following.

Sales $-$ $$300000,$ CGS $$ $$100000,$ S & A exp $-$ $$60000($which includes Depreciation expense of $$10000),$ Tax rate $20\%,$ Change in WC $($A$/$R $-$ Increase of $50000$; Inventory $-$ Decrease of $$40000$; A$/$P $$ Increase of $30,000)$ and Capital expenditure $-$ $$60,000$

Required:

a$)$ Calculate the FCF of Sherburne Corporation?

b$)$ Calculate the Cash Conversion Ratio $($CCR$)?$

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