Question 1 Part A Big City Manufacturing (BCM) is preparing its cash budget and expects to have sales...

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Finance

Question 1
Part A
Big City Manufacturing (BCM) is preparing its cash budget andexpects to have sales of $450,000 in January, $375,000 in February,and $555,000 in March. If 20% of the sales are for cash, 45% arecredit sales paid in the month after the sale, and another 35% arecredit sales paid 2 months after the sale.
a) What are the expected cash receipts forMarch?
Part B
Big City Manufacturing (BCM) assumed that all credit sales werepaid in full, which is not realistic. BCM studied its past creditsales and determined that 2.5% of its credit sales resulted in BadDebts that were never collected. Using the same data from part Awith the new assumption that 2.5% of credit sales were nevercollected,
b) what is your revised estimate for the expected cashreceipts for March?
Part C
Big City Manufacturing (BCM) assumed that all credit sales werepaid in full, with no bad debt expense. Now, Please assume that baddebt expense is again 0% for BCM. Purchases for next month's salesare 70% of projected sales for the next month, and April sales areestimated to be $495,000; purchases for April are paid in cash inMarch. "Other payments," which include wages, rent, and taxes, are25% of sales for the current month.
c) Construct a cash budget for March using your expectedcash receipts from Part A and calculate the average net cash flowduring the month of March

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Question 1Part ABig City Manufacturing (BCM) is preparing its cash budget andexpects to have sales of $450,000 in January, $375,000 in February,and $555,000 in March. If 20% of the sales are for cash, 45% arecredit sales paid in the month after the sale, and another 35% arecredit sales paid 2 months after the sale.a) What are the expected cash receipts forMarch?Part BBig City Manufacturing (BCM) assumed that all credit sales werepaid in full, which is not realistic. BCM studied its past creditsales and determined that 2.5% of its credit sales resulted in BadDebts that were never collected. Using the same data from part Awith the new assumption that 2.5% of credit sales were nevercollected,b) what is your revised estimate for the expected cashreceipts for March?Part CBig City Manufacturing (BCM) assumed that all credit sales werepaid in full, with no bad debt expense. Now, Please assume that baddebt expense is again 0% for BCM. Purchases for next month's salesare 70% of projected sales for the next month, and April sales areestimated to be $495,000; purchases for April are paid in cash inMarch. "Other payments," which include wages, rent, and taxes, are25% of sales for the current month.c) Construct a cash budget for March using your expectedcash receipts from Part A and calculate the average net cash flowduring the month of March