Question
Please answer within the hour 1a. Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 4,500
Please answer within the hour
1a. Bengal Co. provides the following unit sales forecast for the next three months:
July | August | September | |||||||
Sales units | 4,500 | 5,200 | 5,060 |
The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,125 units. The budgeted production units for July are:
5,800 units.
5,625 units.
4,675 units.
3,375 units.
2,250 units.
1b. A sporting equipment store expects to purchase $7,000 of ski boots in October. The store had $3,000 of ski boots in merchandise inventory at the beginning of October, and expects to have $2,000 of ski boots in merchandise inventory at the end of October to cover part of its anticipated November sales. What is the budgeted cost of goods sold for October?
$10,000.
$7,000.
$9,000.
$5,000.
$8,000.
1c. Western Company is preparing a cash budget for June. The company has $11,200 in cash at the beginning of June and anticipates $30,800 in cash receipts and $36,100 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must:
Borrow $10,000.
Borrow $5300.
Repay $5900.
Repay $4100.
Borrow $4100.
1d. Ballentine Company expects sales for June, July, and August of $53,000, $59,000, and $49,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 55% of its credit sales in the month following the initial credit sale, 40% in the second month following the initial credit sale, and 5% of its credit sales are never collected. What are the company's expected cash receipts for August from its current and past sales? Note: this question is asking for you to calculate the expected cash receipts for BOTH credit AND cash sales.
$73,250.
$51,790.
$96,600.
$67,200.
$32,190.
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