Question
Case 1: ABC Corp. (Q1-Q2)DATAFOR QUESTIONs1&2Today's date 1/29/22Current list price, NRG-A $1.75/barCurrent list price, NRG-B $1.85/barAccounts receivable balance at start of business day, ABC Corp.
Case 1: ABC Corp. (Q1-Q2)DATAFOR QUESTIONs1&2Today's date 1/29/22Current list price, NRG-A $1.75/barCurrent list price, NRG-B $1.85/barAccounts receivable balance at start of business day, ABC Corp. $7,380Credit limit, ABC Corp. $12,000Current New Orderfrom ABCProduct NRG-BQuantity 6cases (1,728bars)Note: 288 bars per caseShip to ABC headquartersDate desired 2/5/221.Given the Datain Fitter Snacker's system abovefor questions
Q1&Q2:a.Assuming a Static Check, what is theTotal Commitmentof the ABC Corporationafter entering the Current New Order? (Showall yourcalculations.)b.Should credit be granted for the Current New order from ABC Corporation? (Yes or No).ADDITIONAL DOCUMENTS IN THE SYSTEM (to be included when answering Q2 only)Purchase order A1050from ABC Corporation for 3cases (864bars) of NRG-AThis order is in the sales order entry program buthas not been transferred to the accounting program (thus, Accounting does not yet know about this sale).2.Given the Data in Fitter Snacker's system as well asthe Additional Documents provided directly above:a.What should be thenew/revisedTotal Commitment?(Show all your calculations.)b.Would credit be granted for the Current New orderfrom ABC Corporationin Fitter Snacker's current non-integratedsystem?(Yes or No).Why do you think this?
Case 2: XYZCorp. (Q3-Q4)DATA FOR QUESTIONs 3&4Today's date 2/03/22Current list price, NRG-A $1.75/barCurrent list price, NRG-B $1.85/barAccounts receivable balance at start of business day, XYZCorp. $9,500Credit limit, XYZ Corp. $14,500Current New Orderfrom XYZProduct NRG-BQuantity5 cases (1,440 bars)Ship to XYZheadquartersDate desired 2/08/223.Given the Data in Fitter Snacker's system abovefor questions Q3&Q4:a.Assuming a Static Check, what is the Total Commitment of the XYZ Corporation after entering the Current New Order? (Showall yourcalculations.)b.Should credit be granted for the Current New order from XYZ Corporation? (Yes or No).
ADDITIONAL DOCUMENTS IN THE SYSTEM (to be included when answering Q4 only)Purchase order XYZ65444for three cases (864 bars) of NRG-B. This order is in the sales order entry program, but it has not been transferred to the accounting program (thus, Accounting does not yet know about this sale).4.Given the Data in Fitter Snacker's system as well as the Additional Documents provided directly above:a.What should bethe new/revisedTotal Commitmentof the XYZ Corporation?(Show all your calculations.)b.Would credit be granted for the Current New order from XYZ Corporation in the current non-integratedFitter Snacker system? (Yes or No.)Why do you think this?c.If the FitterSnacker system processed data in real time(meaning if FS had an integrated system like SAP) would credit be granted for the Current New order from XYZCorporation?Explain whyor why not.
Case 3: POPPERCorp. (Q5-Q6)DATA FOR QUESTIONS5&6Today's date 2/13/22Current list price, NRG-A $1.75/barCurrent list price, NRG-B $1.85/barAccounts receivable balance at start of business day, POPPERCorp. $5,750Credit limit, POPPERCorp. $11,500Current new orderfrom POPPERProduct NRG-AQuantity12 Cases(3,456bars)Ship to POPPERheadquartersDate desired 2/15/225.Given the Data in Fitter Snacker's system abovefor questions Q5&Q6:a.Assuming a Static Check, what is theTotal Commitment of the POPPER Corporation after entering the Current New Order? (Showall yourcalculations.)b.Should credit be granted for the Current New order from POPPER Corporation? (Yes or No).Explain why.ADDITIONAL DOCUMENTS IN THE SYSTEM (to be included when answering Q6 only)A check from POPPERwas received in yesterday's mail and was entered into the accounting system. Thecheck is for $2,400, applied to invoices from January'ssales. The salesclerksare working from creditlimitprintouts prepared at the beginning of the week (threedays ago).6.Given the Data in Fitter Snacker's system as well as the Additional Documents provided directly above:a.If the FitterSnacker system processed data in real time(meaning if FS had an integrated system like SAP), what would be the Total Commitment of the POPPERCorp? (Showallyourcalculations.)b.If the Fitter Snacker system processed data in real time, should credit be granted for the Current New order from POPPER? (Yes or No). Explain why.
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