H&R Block is a service company whose main business ispreparing tax returns. Most tax returns are prepared after January31 and before April 15. For a fee and interest, the company willadvance cash to clients who are due refunds. The clients areexpected to repay the cash advances when they receive theirrefunds. Although H&R Block has some revenues throughout theyear, it devotes most of the nontax season to training potentialemployees in tax preparation procedures and to laying the groundwork for the next tax season.
Toyâs âRâ Us is a toy retailer whose sales are concentrated inOctober, November, and December of one year and January of the nextyear. Sales continue at a steady but low level during the rest ofthe year. The company purchases most of its inventory between Julyand September.
Johnson & Johnson sells the many health care products thatitâs manufacturers to retailers, and the retailers sell them to thefinal customer. Johnson & Johnson offers retailers creditterms.
Discuss the nature of cash receipts and case disbursements overa calendar year in the three companies we have just described. Whatare some key estimates that the management of these companies mustmake when preparing a cash budget?
H&R Block is a service company whose main business ispreparing tax returns. Most tax returns are prepared after January31 and before April 15. For a fee and interest, the company willadvance cash to clients who are due refunds. The clients areexpected to repay the cash advances when they receive theirrefunds. Although H&R Block has some revenues throughout theyear, it devotes most of the nontax season to training potentialemployees in tax preparation procedures and to laying the groundwork for the next tax season.
Toyâs âRâ Us is a toy retailer whose sales are concentrated inOctober, November, and December of one year and January of the nextyear. Sales continue at a steady but low level during the rest ofthe year. The company purchases most of its inventory between Julyand September.
Johnson & Johnson sells the many health care products thatitâs manufacturers to retailers, and the retailers sell them to thefinal customer. Johnson & Johnson offers retailers creditterms.
Discuss the nature of cash receipts and case disbursements overa calendar year in the three companies we have just described. Whatare some key estimates that the management of these companies mustmake when preparing a cash budget?
