Question
IRWIN TECH sales in June were 400,000 units. Sales are expected to increase by 2% each month during the next 2 months (July and August)
IRWIN TECH sales in June were 400,000 units. Sales are expected to increase by 2% each month during the next 2 months (July and August) and an additional 8,000 units in September from August amount. Selling price is $16 per unit. Expected sales in October are 420,000 units. The firm inventory policy is to maintain an ending inventory equal to 25% of next month sales. Actual inventory is 103,000 units.
80% of sales are cash sales
20% of sales are collected in 1 month
A. Calculate expected Total Cash Receipts for July
B. Calculate expected Accounts Receivables for the projected Balance Sheet.
C. Calculate expected Total Cash Receipts for September.
Step 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