Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I will rate your answer! Example1 Acme, Inc. forecasts sales of 10,000 units with 20% in the first quarter, 25% in the second, 20% in
I will rate your answer!
Example1 Acme, Inc. forecasts sales of 10,000 units with 20% in the first quarter, 25% in the second, 20% in the third, and 35% in the fourth. Its sales price per unit is S50. Management plans to maintain ending inventory of finished goods at 25% of next quarter's budgeted sales volume. For the year, management expects to end the year with 500 units of finished goods. Prepare the sales and production budget for Acme's first quarter. Example 2 Aurora, Inc. expects to have sales revenue of $40,000 in the final quarter of the current year, and is budgeting $30,000 in the first quarter and $35,000 in the second quarter of the following year. In general, it expects to collect 60% of sales in the current quarter, 35% in the second, and it expects 5% to become uncollectible. What is the amount of cash that it expects to collect in the first two quarters? Bantina, Inc. expects to collect cash in the following amounts in each quarter of its budget year: S35,000; $40,000; $60,000; $40,000. It also expects to have the following total cash disbursements: $(30,000); S(50,000); $(45,000); S(45,000). If it expects to end the current year with S15,000 in cash, what are its financing needs assuming that its policy is to maintain a minimum cash balance of $15,000 and that it has a line ofcredit from its bank at 8% interestStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started