Problem 4-21 Schedule of cash payments [LO4-2] The Denver Corporation has forecast the following sales for...

3.6 Ratings (599 Votes)

	Denver Corporation
	Cash Payment for Raw Material
Months	Dec	Jan	Feb	Mar	April	May	June	July
Sales		$ 30,000.00	$ 32,000.00	$ 34,000.00	$ 40,000.00	$ 30,000.00	$ 36,000.00	$ 38,000.00
Purchases 40% of sales	$ 12,000.00	$ 12,800.00	$ 13,600.00	$ 16,000.00	$ 12,000.00	$ 14,400.00	$ 15,200.00	$ -
Cash Payment For previous month purchases(50%)		$ 6,000.00	$ 6,400.00	$ 6,800.00	$ 8,000.00	$ 6,000.00	$ 7,200.00	$ 7,600.00
Cash payment For current month purchases(50%)		$ 6,400.00	$ 6,800.00	$ 8,000.00	$ 6,000.00	$ 7,200.00	$ 7,600.00	$ -
Total Cash Payment		$ 12,400.00	$ 13,200.00	$ 14,800.00	$ 14,000.00	$ 13,200.00	$ 14,800.00	$ 7,600.00

	Cash Payment for 6 MONTHS
Months	Dec	Jan	Feb	Mar	April	May	June	July
Sales		$ 30,000.00	$ 32,000.00	$ 34,000.00	$ 40,000.00	$ 30,000.00	$ 36,000.00	$ 38,000.00
Payment for Purchase		$ 12,400.00	$ 13,200.00	$ 14,800.00	$ 14,000.00	$ 13,200.00	$ 14,800.00	$ 7,600.00
Labor cost	$ 6,000.00	$ 6,000.00	$ 6,000.00	$ 6,000.00	$ 6,000.00	$ 6,000.00	$ 6,000.00	$ 6,000.00
Fixed Overhead	$ 12,000.00	$ 12,000.00	$ 12,000.00	$ 12,000.00	$ 12,000.00	$ 12,000.00	$ 12,000.00	$ 12,000.00
Interest Paid				$ 5,000.00			$ 5,000.00
Commission (3% of 6 months Sales)=($202000*3%)				$ -			$ 6,060.00
Total Cash Payment	$ 18,000.00	$ 30,400.00	$ 31,200.00	$ 37,800.00	$ 32,000.00	$ 31,200.00	$ 43,860.00	$ 25,600.00


Month	Sales
Jan	$ 30,000.00
Feb	$ 32,000.00
Mar	$ 34,000.00
April	$ 40,000.00
May	$ 30,000.00
June	$ 36,000.00
Total Sales	$ 2,02,000.00
Commission(3% on $202000)	$ 6,060.00

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text