Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ServComp Inc. is a retail distributor for MZB-33 computer hardware and related software and support services ServComp prepares annual sales forecasts of which the first

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
ServComp Inc. is a retail distributor for MZB-33 computer hardware and related software and support services ServComp prepares annual sales forecasts of which the first six months for 2019 are presented here Click the icon to view the cash collections, cash receipts, and inventory information) Click the icon to view the sales forecast for the first six months of 2019.) Required Requirement 1. Calculate the cash that ServComp Inc. can expect to collect during April 2019. Be sure to show all of your calculations (Show all 2019 months in the cash collections. If the cash collected is 2000, onder 'o.) April cash receipts April cash sales Apnl credit card sales Collections on account X Cash collections, cash receipts, and inventory info Cash sales account for 20% of ServComp's total sales, 30% of the total sales are paid by bank credit card, and the remaining 50% are on open account (ServComp's own charge accounts). The cash sales and cash from bank credit card sales are received in the month of the sale. Bank credit card sales are subject to a 4% discount deducted at the time of the daily deposit. The cash receipts for sales on open account are 70% in the month following the sale and 28% in the second month after the sale. The remaining accounts receivable are estimated to be uncollectible. ServComp's month-end inventory requirements for computer hardware units are 30% of the next month's sales. A one-month lead time is required for delivery from the manufacturer. Thus, orders for computer hardware units are placed on the 25th of each month to assure that they will be in the store by the first day of the month needed. The computer hardware units are purchased under terms of n/45 (payment in full within 45 days of invoice), measured from the time the units are delivered to ServComp. ServComp's purchase price for the computer units is 60% of the selling price. Print Done Sales forecast January February Servcomp, m. Sales Forecast for First Six Months of 2019 Hardware Sales Software Sales Total Units Dollars and Support Revenues 115 $ 345,000 $ 195,000 $ 540,000 125 375,000 130,000 505,000 110 330,000 140,000 470,000 100 300,000 120,000 420,000 100 300,000 135,000 435,000 120 360,000 215,000 575,000 March April May June 670 $ 2,010,000 $ Total 935,000 $ 2,945,000 Print Done - Required 1. Calculate the cash that ServComp Inc. can expect to collect during April 2019. Be sure to show all of your calculations 2. ServComp Inc. is determining how many MZB-33 computer hardware units to order on January 25, 2019. a. Determine the projected number of computer hardware units that will be ordered. b. Calculate the dollar amount of the order that ServComp will place for these computer hardware units. 3. As part of the annual budget process, ServComp prepares a cash budget by month for the entire year Explain why a company such as ServComp would do this. Print Done

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

Detecting Accounting Fraud Before Its Too Late

Authors: Oriol Amat

1st Edition

1119566843, 9781119566847

More Books

Students also viewed these Accounting questions

Question

Give several examples of period costs.

Answered: 1 week ago