Problem 20-7AA Merchandising: Preparation and analysis of cash budgets with sup The followng information applies to the questions displayed below Aztec Compony sells ts product for $180 per unit.its actual and budgeted sales follow Units 4 500 3,400 April (ectua) May (actual June (budgeted) July (budgeted) August (budgered) $810.000 612.000 990.000 1,350,000 756.000 7500 4.200 All sales ere on credit Recent experience shows that 26% of credit sales is collected in the month of the sale. 44% in the nontn ener the sale, 28% in the second month after the sele end 2% proves to be unco ect ble The product's purchese price is $110 purchases made in morm s paid in that month and the other 40% is paid in the next month. The c has policy to maintain an ending monthy inventory of 19% of the next month's unit sees pus safety stock of 95 units. The April 30 and Moy 31 actuel inventory levels ore consistent with this administrative expenses for the year are $1,692.000 and are paid evenly throughout the year in cach. The company's minimum cash balance at month-end is $140.000 This minimum is maintained, if necessary, by borrowing cash from the bank if the balance exceeds $140 000, the company repays as much of the loan as it can without going below the minimu . This type of loon carries on or nuoi 12% interest rate. On May 31, the loan balance is $47500, end the company's cash balance is $140,000 per unit. All purchases are payable within 13 days Thus, 60% of ompeny end References Problem 20-7AA Merchandising Prep cash budgets with supporting invento LO P4 Section Break Problem 20-7AA Merchandising: Preparation and analysis of cash budgets with sup The followng information applies to the questions displayed below Aztec Compony sells ts product for $180 per unit.its actual and budgeted sales follow Units 4 500 3,400 April (ectua) May (actual June (budgeted) July (budgeted) August (budgered) $810.000 612.000 990.000 1,350,000 756.000 7500 4.200 All sales ere on credit Recent experience shows that 26% of credit sales is collected in the month of the sale. 44% in the nontn ener the sale, 28% in the second month after the sele end 2% proves to be unco ect ble The product's purchese price is $110 purchases made in morm s paid in that month and the other 40% is paid in the next month. The c has policy to maintain an ending monthy inventory of 19% of the next month's unit sees pus safety stock of 95 units. The April 30 and Moy 31 actuel inventory levels ore consistent with this administrative expenses for the year are $1,692.000 and are paid evenly throughout the year in cach. The company's minimum cash balance at month-end is $140.000 This minimum is maintained, if necessary, by borrowing cash from the bank if the balance exceeds $140 000, the company repays as much of the loan as it can without going below the minimu . This type of loon carries on or nuoi 12% interest rate. On May 31, the loan balance is $47500, end the company's cash balance is $140,000 per unit. All purchases are payable within 13 days Thus, 60% of ompeny end References Problem 20-7AA Merchandising Prep cash budgets with supporting invento LO P4 Section Break
