{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-09-12T09:07:01-04:00", "answer_date": "2024-09-12 09:07:01", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "10445392", "url": "\/study-help\/questions\/thank-you-will-thumbs-up-you-have-just-been-hired-10445392", "question_creation_date_js": "2024-09-12T09:07:01-04:00", "question_creation_date": "Sep 12, 2024 09:07 AM", "meta_title": "[Solved] Thank you! will thumbs up You have just b | SolutionInn", "meta_description": "Answer of - Thank you! will thumbs up You have just been hired as a new management trainee by Earrings Unlimited, a distributor of | SolutionInn", "meta_keywords": "thank,will,thumbs,hired,new,management,trainee,earrings,unlimited,distributor,various,retail", "question_title_h1": "Thank you! will thumbs up You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail", "question_title": "Thank you! will thumbs up You have just been hired as a", "question_title_for_js_snippet": "Thank you will thumbs up You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter To this end, you have worked with accounting and other areas to gather the information assembled below The company sells many styles of earrings, but all are sold for the same price $15 per pair Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings) The concentration of sales before and during May is due to Mother's Day Sufficient inventory should be on hand at the end of each month to supply 40 of the earrings sold in the following month Suppliers are paid $5 10 for a pair of earrings One half of a month's purchases is paid for in the month of purchase the other half is paid for in the following month All sales are on credit Only 20 of a month's sales are collected in the month of sale An additional 70 is collected in the following month, and the remaining 10 is collected in the second month following sale Bad debts have been negligible Monthly operating expenses for the company are given below Insurance is paid on an annual basis, in November of each year The company plans to purchase $21,500 in new equipment during May and $51,000 in new equipment during June both purchases will be for cash The company declares dividends of $23,250 each quarter, payable in the first month of the following quarter The company's balance sheet as of March 31 is given below The company maintains a minimum cash balance of $61,000 All borrowing is done at the beginning of a month any repayments are made at the end of a month The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month The interest rate on these loans is 1 per month and for simplicity we will assume that interest is not compounded At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000 ), while still retaining at least $61,000 in cash ing June 30 that includes a budgeted balance sheet as of June 30", "question_description": "

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\"imageThank you! will thumbs up<\/p> You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below. The company sells many styles of earrings, but all are sold for the same price- $15 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): The concentration of sales before and during May is due to Mother's Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month. Suppliers are paid $5.10 for a pair of earrings. One-half of a month's purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month's sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. Monthly operating expenses for the company are given below: Insurance is paid on an annual basis, in November of each year. The company plans to purchase $21,500 in new equipment during May and $51,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $23,250 each quarter, payable in the first month of the following quarter. The company's balance sheet as of March 31 is given below: The company maintains a minimum cash balance of $61,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month. The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000 ), while still retaining at least $61,000 in cash. ing June 30 that includes a budgeted balance sheet as of June 30", "transcribed_text": "", "related_book": { "title": null, "isbn": null, "edition": null, "authors": null, "cover_image": null, "uri": null, "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-12 09:07:01", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/positive-psychology\/is-the-ability-of-your-sensory-organs-to-pick-1998429", "description": "_____ is the ability of your sensory organs to pick up energy in the environment around the body and transmit it to your brain. 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It purchased depreciable assets costing $37.6 million and having a four-year expected life, after which the assets can be salvaged...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/parsons-company-is-planning-to-produce-2700-units-of-product-10445391", "next": "\/study-help\/questions\/haas-company-manufactures-and-sells-one-product-the-following-information-10445393" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Thank you! will thumbs up You have just been hired as a", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/thank-you-will-thumbs-up-you-have-just-been-hired-10445392" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } "1" } }