Answered step by step
Verified Expert Solution
Question
1 Approved Answer
pls show work. Ty kind sir or madam 10. Lilah's Doll Company (LDC) is in the process of preparing its first quarter 2014 budget. It
pls show work. Ty kind sir or madam
10. Lilah's Doll Company (LDC) is in the process of preparing its first quarter 2014 budget. It forecasts the following sales of dolls Month January 2014 February 2014 March 2014 April 2014 Unit Sales 1,000 dolls 1,200 dolls 1,500 dolls 1,700 dolls Each doll will be sold for $20. LDC anticipates 40% of all dolls sold will be for cash and 60% of all dolls sold will be for credit. LDC anticipates that credit sales will be collected in cash as follows: 30% will be collected in the month of sale, 60% will be collected in the month following the sale, and 10% will never be collected. The accounts receivable balances at December 31, 2013 is $8,000, all of which will be collected in January 2014 What amount of cash will be received by LDC in February, 2014? a. $24,000 b. $14,400 c. $9,600 d. $21,120 e. $20,000 Refer to the facts in question 10 to answer question 11 11. LDC pays its salesmen a commission of $1 per doll sold. In addition, salesmen are paid salaries of $10,000 per month. Commissions are paid in the month after the sales is made regardless of when LDC receives the cash from the customer. The only other expense of the sales department is depreciation on salesmen's automobiles of $2,000 per month What amount of cash expenses will be paid by the sales department in February 2014? a. $11,200 b. $11,000 c. $13,200 d. $10,000 e. $13,000Step 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