5. Lon Corporation had beginning inventory of 42.000 units and expects sales of 96.000 units during the year. Desired ending Inventory is 31,000 units. How many units should Lon Corporation produce of lan is a manufacturer) or purchase of Lon is a retailer? a. 65.000 units b. 73,000 units c. 85.000 units d. 107.000 units 6. Bolin's, an elite clothier, expects in November sales to be 30% higher than its October sales of $200,000. Purchases were $100,000 in October and are expected to be $150,000 in November. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Purchases are paid 25% in the month of the purchase and 75% in the following month. The cash balance on November 1 is $9,000. The cash balance on November 30 will be: a. $87.000 b. $114,500 c. $140,000 d. $149,000 7. June sales were $40.000 while projected sales for July and August were $50,000 and $60,000, respectively. Sales are 40% cash and 60% credit. All credit sales are collected in the month following sale. What are the expected collections for July? a. $36,000 b. $44,000 c. $50,000 d. $54.000 8. Purchases for May were $100,000, while expected purchases for June and July are $110,000 and $125,000, respectively. All purchases are paid 25% in the month of purchase and 75% the following month. At what amount are June payments for purchases budgeted? a. $102,500 b. $107.500 c. $110.000 d. $121.250 2