Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 9-34 Relationships of the Master-Budget Components (LO 9-3, 9-5, 9-6) Badlands Inc. manufactures a household fan that sells for $25 per unit. All sales

image text in transcribed

Problem 9-34 Relationships of the Master-Budget Components (LO 9-3, 9-5, 9-6) 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 company's accounting records. - Badlands maintains a minimum cash balance of $28,000. Total payments in January 201 are budgeted at $300,000. - A schedule of cash collections for January and February of 201 revealed the following receipts for the period: - March 20x1 sales are expected to total 10,000 units. - Finished-goods inventories are maintained at 25 percent of the following month's sales. - The December 31, 20x0, balance sheet revealed the following selected figures: cash, $24,400; accounts receivable, $129,000; and finished goods, $25,200. Required: 1. Determine the number of units that Badlands sold in December 200. 2. Compute the sales revenue for March 201. 3. Compute the total sales revenue to be reported on Badlands' budgeted income statement for the first quarter of 201. 4. Determine the accounts receivable balance to be reported on the March 31,201, budgeted balance sheet. 5. Calculate the number of units in the December 31,200, finished-goods inventory. 6. Calculate the number of units of finished goods to be manufactured in January 201. 7. Calculate the financing required in January, if any, to maintain the firm's minimum cash balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

7th Edition

1118725786, 978-1118725788

Students also viewed these Accounting questions