XYZ Co. has forecasted June sales of 500 units and July sales of 1,800 units. The company maintains ending inventory equal to 125% of next month's sales. June beginning inventory reflects this policy. What is June's required production?

2,275 units

2,125 units

2,075 units

2,025 units

A firm has beginning inventory of 390 units at a cost of $10 each. Production during the period was 700 units at $13 each. If sales were 790 units, what is the cost of goods sold (assume FIFO)?

$9,400

$9,300

$8,900

$9,100

In general, the smaller the portion of a firm's sales that are on credit, the

more the firm can buy raw materials on credit.

more rapidly credit sales will be paid off.

higher will be the firm's need to borrow.

lower will be the firm's need to borrow.

The difference between total receipts and total payments is referred to as

cumulative cash flow

cash balance.

beginning cash flow.

net cash flow.