The Blatz Brewing Company produces 25 million hectolitres of beer ...

[laurencescou]

The Blatz Brewing Company produces 25 million hectolitres of beer each year. To put this in perspective, California consumed that much beer last year. A sales forecast for Blatz is provided in the top row of the table. Blatz sells its beer at a wholesale price of US$85 per hectoliter. All sales are on account and 75% of receivables are collected after 1 month, while 25% are collected after 2 months. Blatz buys barley, hops and yeast one month before the sale. Raw materials cost 15% of the wholesale price of the beer. Blatz purchases its raw materials on account and pays its suppliers one month after the purchase.
Average monthly overhead expenses are $35M (wages, salaries, heat, water, electricity, selling, general and administration). What are Blatz' net cash flows in March?

Sales Forecast and Cash Budget

Blatz Brewing Company

​	January	February	March	April
Sales Forecast - millions of hectoliters	1	1	1.5	2
Sales Forecast - millions of dollars	$85	$85	$128	$170
Collections from last month	​	​	​	​
Collections from 2 months ago	​	​	​
Total Cash Inflows	​	​	​	​
​	​	​	​	​
Purchases from Suppliers	​	​	​	​
Payments to Suppliers	​	​	​	​
Overhead Expenses	35	35	35	35
Total Disbursements	​	​	​	​
​	​	​	​	​
Net Cash Flow	​	​	​	​

◦ $11
◦ $31
◦ $38
◦ $64
◦ $68

[trog]

A FREE account is required to view all solutions! Click to Register

Login with Facebook Login with Google Login with Email

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 29% of students answer this correctly

[laurencescou]

Great answer, keep it coming

[adammoses97]

Excellent