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Exercise 1) Price, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Price markets two products: 12-ounce disposable plastic bottles

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Exercise 1) Price, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Price markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers. Required: A) For 2019, Price marketing managers project monthly sales of 427,000 12-ounce bottles and 177,000 1-gallon containers. Average selling prices are estimated at $0.45 per 12- ounce bottle and S2.50 per 1-gallon container. Prepare a revenues budget for Price, Inc.,. for the year ending December 31, 2019. B) Price begins 2019 with 890,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2019, be no less than 680,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Price must produce during 2019? C) The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2019, be 240,000 units. If the production budget calls for Price to produce 1,900,000 1-gallon containers during 2019, what is the beginning inventory of 1-gallon containers on January 1, 2019? Exercise 2) Accountics Corp. expects service revenue in the next 6 months as follows: August September S710,000 October $888,000 S915,000 May June July $761,000 $835,000 $820,000 Prior experience has shown that the following collections are made: 26 percent of a month's revenue is collected in the month the service is performed 23.5 percent in the month following the service being performed 18.8 percent in the second month following the service being performed 11.4 percent in the third month following the service being performed 7.9 percent in the fourth month following the service being performed Remainder is collected in the fifth month following the service being performed March and April service revenues were $675,000 and $690,000 respectively. Past experience shows that 3.3 percent of revenues are never collected (i.e., bad debts) Required: Estimate budgeted cash receipts (service revenue collected) for August, September, and October

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