Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Cabello Company buys air conditioners for $3,900 and sells them for $4,800 each; the company has the following sales forecast: April 120 units May

image text in transcribed
image text in transcribed
The Cabello Company buys air conditioners for $3,900 and sells them for $4,800 each; the company has the following sales forecast: April 120 units May 140 units June 180 units July 160 units The company wants to maintain ending inventory for each month at 15% of the next month's sales and had 20 units on hand on April 1st. The company also has monthly rent of $15,000 and salaries of $80,000. The company pays for 80% of inventory purchases in the month of the purchase and 20% of inventory purchases in the month following the purchase. Otherwise, it pays for all selling and administrative costs in the month incurred. The company's customers pay for all products in the month they are purchased. The company had cash of $22,000, equipment of $36,000 and zero accounts payable on April 1st. The company had cash of $22,000, equipment of $36,000 and zero accounts payable on April 1st. D1. What amount of cash would appear in the company's balance sheet budget for May? Enter answer... D 2. What amount of accounts payable would appear in the company's balance sheet budget for April? Enter answer... D 3. What dollar amount of inventory would appear in the company's balance sheet budget for May? Enter

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

Advances In Accounting Education Teaching And Curriculum Innovations Volume 23

Authors: Thomas G. Calderon

1st Edition

1789733944, 978-1789733945

More Books

Students also viewed these Accounting questions