Question 1)

Question 2)

Question 3)

Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Sales revenue Cost of sales Allocated corporate overhead Other general and administration Lake Region Coastal Region $4,140,000 $13,050,000 2,681,300 6,525,000 248, 400 783,000 551,900 3,753,000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed? Scare-2-B-U (S2BU) specializes in costumes for all occasions. The average price of each of its costumes is $310. For each occasion, S2BU receives a 10 percent deposit two months before the occasion, 50 percent the month before, and the remainder on the day the costume is delivered. Based on information at hand, managers at S2BU expect to make costumes for the following number of occasions during the coming months. 60 April May June July August September 55 125 Required: a. What are the expected revenues for S2BU for each month, April through September? Revenues are recorded in the month of the occasion b. What are the expected cash receipts for each month, April through July? Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months' sales. The tiles cost $1.25 each and must be paid for in cash. The company has 29,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months January February March April May June 13,100 17,400 13,000 14,300 9,900 6,500 Required: a. & b. Estimate purchases in units) and cash required to make purchases in January, February, and March MIDLAND COMPANY Merchandise Purchases Budget For the Period Ended March 31 + (in units) January February Units to be purchased 43,500 44.700 Estimated cost 15 14.500 $ 14,300 March 37.200 9,900 $