Use the following information to answer Questions 1 through 4. Nature, Inc. manufactures and distributes organic food products to retailers. Among its product offerings is
Use the following information to answer Questions 1 through 4. Nature, Inc. manufactures and distributes organic food products to retailers. Among its product offerings is Silky Smooth, a vegan-friendly, organic smoothie drink. The product is packaged in individual smoothie containers with a selling price of $2 per unit. When planning for the upcoming season of New Year's resolutions, Nature, Inc. estimates the following: Sales Volume in Units December: 60,000 January: 80,000 February: 95,000 March: 75,000 Production Policy_: Silky Smooth nished goods inventory on hand at the end of each month should be equal to 40% of the next month's sales volume. Cash Sales and Credit Collections: . Percent of sales that are paid in cash: 10% . Percent of sales that are paid in credit: 90% 0 Credit sales collected in month of sale: 30% 0 Credit sales collected in month after sale: 65% 0 Credit sales collected 2 months after sale: 5% Compute the amount of Nature Ltd's budgeted sales revenue for the month of February. $19,000 $171,000 0 $190,000 $95,000 Question 2 1 pts Compute the number of units of Silky Smooth that should be produced in February. 95,000 units 57,000 u nits 87,000 u nits 125,000 units Question 3 1 pts Compute the total amount of expected cash collections in the month of February. $163,900 $150,300 $19,000 $169,300 Question 4 1 pts Compute the balance of the Accounts Receivable account as of end of February. $119,700 $123,200 $126,900 Not enough information to decide
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