Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A) For ABC venture, the sales forecast for June is $10M. The July sales are forecasted to increase by 10% over June sales. The Cost

A) For ABC venture, the sales forecast for June is $10M. The July sales are forecasted to increase by 10% over June sales. The Cost of goods sold for all months is 60%. The firm has a policy to have in hand inventory to cover 70% of its sales for the month, and the firm plans an additional safety cushion of $1M worth of inventory.

Find the beginning of July inventory.

$5.62M; $6.86M; $7.34M; $4.90M; or $3.26M

B) For a venture, its sales forecast for August is $12M. The Cost of goods sold for all months is 60%. The firm has a policy to have in hand inventory to cover 70% of its sales for the month, and the firm plans an additional safety cushion of $1M worth of inventory.

Find the end of July inventory.

$2.98M; $5.45M; $6.04M; $7.35M; or $8.16M

--Thank you. Not sure if there is a typo on Question B.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Principles And Applications

Authors: Sheridan Titman, John Martin

14th Global Edition

1292349824, 978-1292349824

More Books

Students also viewed these Finance questions

Question

Examine the model that you created in exercise

Answered: 1 week ago