Question
The controller of Kari Company estimates sales and production for the first four months of 2020 as follows: January February March April Sales. $40,000 $50,000
The controller of Kari Company estimates sales and production for the first four months of 2020 as follows:
January February March April
Sales. $40,000 $50,000 $60,000 $35,000
Production in units 2,000 2,500 3,000 3,500
Sales are 60% cash and 40% on account, and 40% of credit sales are collected in the month of the sale. In the month after the sale, 60% of credit sales are collected. It takes 5 kg of direct material to produce a finished unit, and direct materials cost $6 per kg. All direct materials purchases are on account and are paid as follows: 60% in the month of the purchase and 40% the following month. Ending direct materials inventory for each month is 20% of the next month's production needs. January's beginning materials inventory is 2,000 kg. Suppose that both accounts receivable and accounts payable are zero at the beginning of January.
Instructions
What is the accounts receivable balance at the end of March? $14,400
What are cash payments on account for February? $72,000
f. What is the ending balance in accounts payable for March? $37,200
g. What is the change in the cash balance for the period January-March? Please provide detailed notes! Will provide a like if right! I Provided questions above to provide textbook answers, but only need answer for G.
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