Question $64$

Pacific Inc. sells windows for residential homes. The company started operations on July $1,$

The actual sales for July and the estimated sales for the following three months are as

follows:

Pacific sells the windows for $$250$ each. Cash is collected as follows: $50\%$ in the month of sale

and $45\%$ in the month following the sale. The remainder is deemed uncollectible $($bad debt$).$ The

company's policy is to have a finished goods inventory at the end of each month equal to $20\%$ of

the next month's sales. The windows are purchased from a wholesaler company at a cost of $$150$

each. Cash disbursements for purchases are made as follows: $60\%$ in the month of purchase,

$40\%$ in the month following the purchase.

a$)$ Calculate the estimated cash collections in the month of August and September. $($show

your work$)$

b$)$ Calculate the estimated number of doors to be purchased in the months of August and

September. $($show your work

c$)$ Calculate the estimated cash disbursements to be made in the month of September only.

$($Show your work$)$

d$)$ Calculate the estimated Cost of Goods Sold for the month of September. $($Show your

work$)$