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1- ABC Company plans to sell 250,000 units of finished product in July and anticipates a growth rate in sales of 6% per month. The
1- ABC Company plans to sell 250,000 units of finished product in July and anticipates a growth rate in sales of 6% per month. The desired monthly ending inventory in units of finished product is 75% of the next month's estimated sales. There are 200,000 finished units in inventory on June 30. Determine the production requirement in units of finished product for the July-October. 2- XYZ Company makes collections on sales according to the following schedule: Expected Sales February $ 130,000 March $ 170,000 April $ 200,000 50% in the month of sale 20% in the month following sale 30% in the second month following sale The Treasury Manager conducts an analysis of the cash collection and determines that cash collection target for April should be $225,000. (a) Do you agree with collection target of April? (b) Why or why not? (c )Present your Cash Collection Schedule for February to April. 3- ABC Company plans to sell 225,000 units of finished product in July and anticipates a growth rate in sales of 7% per month. The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. There are 150,000 finished units in inventory on June 30. Determine the production requirement in units of finished product for the July-October. 4- XYZ Company makes collections on sales according to the following schedule: Expected Sales February $ 112,000 March $ 150,000 April $ 100,000 50% in the month of sale 20% in the month following sale 30% in the second month following sale The Treasury Manager conducts an analysis of the cash collection and determines that cash collection target for April should be $275,000. (a) Do you agree with collection target of April? (b) Why and why not? (c )Present your Cash Collection Schedule for February to April
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