Answered step by step
Verified Expert Solution
Question
1 Approved Answer
its been two hours someone please answer this Badlands, Inc. manufactures a household fan that sells for $25 per unit. All sales are on account,
its been two hours someone please answer this
Badlands, Inc. manufactures a household fan that sells for $25 per unit. All sales are on account, with 40 percent of sales collected in the month of sale and 60 percent collected in the following month. The data that follow were extracted from the companys accounting records.
- Badlands maintains a minimum cash balance of $18,000. Total payments in January 20x1 are budgeted at $215,000.
- A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:
Cash Receipts January February From December 31 accounts receivable $ 111,000 From January sales 93,000 $ 148,000 From February sales 74,400
- March 20x1 sales are expected to total 8,500 units.
- Finished-goods inventories are maintained at 20 percent of the following months sales.
- The December 31, 20x0, balance sheet revealed the following selected figures: cash, $24,200; accounts receivable, $111,000; and finished goods, $24,900.
Required:
-
Calculate the number of units of finished goods to be manufactured in January 20x1.
-
Calculate the financing required in January, if any, to maintain the firms minimum cash balance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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