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Hi Solver, how are you? I have 3 accounting questions that I need help with.... Question 2 A company expects its September sales to be
Hi Solver, how are you? I have 3 accounting questions that I need help with....
Question 2 A company expects its September sales to be 15% higher than its August sales of $140,000. Purchases were $75,000 in August and are expected to be $85,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month. The beginning cash balance on September 1 is $71,500. The ending cash balance on September 30 would be: Answers: a. $121,80 0 b. $148,700 c. $140,300 d. $143,700 e. $135,300 Question 7 Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year: Ending inventory for each month should be 20% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February? Answers a. 1,860 : b. 1,900 c. 1,940 d. 1,980 e. 2,320 Question 10 A June sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. Merchandise purchases for June are projected to include how many units? Selected Answer: d. 7,150 units Answers: a. 6,000 units b. 6,150 units c. 5,850 units d. 7,150 units e. 6,500 unitsStep by Step Solution
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