es 1. Expected monthly sales for April, May, June, and July are $290,000, 2. Cost of goods sold is 40 percent of expected sales. 3. CGC's desired ending inventory is 30 percent of the following month 4. Monthly operating expenses are estimated to be: o Salaries: $37,000. • Delivery expense: 6 percent of monthly sales. • Rent expense on the warehouse: $8,000. • Utilities: $1,600. o Insurance: $180. • Other expenses: $280. Required: 1. Compute the budgeted cost of purchases for each month in the sec 2. Complete the budgeted income statement for each month in the sec Complete this question by entering your answers in the tabs belc
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- Assume a merchandising company’s estimated sales for January, February, and March are $105,000, $125,000, and $115,000, respectively. Its cost of goods sold is always 30% of its sales. The company always maintains ending merchandise inventory equal to 10% of next month’s cost of goods sold. What are the required merchandise purchases for January?Assume a merchandising company's estimated sales for January, February, and March are $107,000, $ 127,000, and $117,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 20% of next month's cost of goods sold. It pays for 20% of its merchandise purchases in the month of the purchase and the remaining 80% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the company's cash budget for February? Multiple Choice $68,280 $65, 280 $71,280 $70,280Assume a manufacturing company,s estimated sales for january,febuar and march are 1,00,000 , 1,20,000 , 1,10,000 respectively.the cost of goods sold is always 40 % of its sales.the company always maintains ending merchandise inventory equal to 10%of next motn cost of goods sold.it pays for 25% of its merchandise purchase in the month of the purchase and remaining 75%in the subsequent month .What is the account payable balance at the end of febuary? please proper explantion thnx
- Assume a merchandising company’s estimated sales for January, February, and March are $118,000, $138,000, and $128,000, respectively. Its cost of goods sold is always 35% of its sales. The company always maintains ending merchandise inventory equal to 20% of next month’s cost of goods sold. It pays for 25% of its merchandise purchases in the month of the purchase and the remaining 75% in the subsequent month. What is the accounts payable balance at the end of February? Multiple Choice $32,025 $33,205 $11,900 $35,700Shrek & Flona Company, manufacturer of a single product, is preparing their annual budget for 2021: Requirements: 1. Prepare a Sales Budget 2. Determine production volume 3. Estimate manufacturing costs and operating expenses a. Purchases (material) budget b. Personnel budget c. Overhead budget d. Selling and administrative budget 4. Determine cash flow and other financial effects a. Cash collection schedule b. Cash disbursement for purchases, factory overhead, and selling and administrative expenses c. Cash budget 5. Formulate Projected Financial Statements (As of December 31, 2021) a. Budgeted Cost of Goods Manufactured b. Budgeted Income Statement c. Budgeted Balance Sheet Shrek & Fiona Company Statement of Financial Position As of December 31, 2020 Current Assets Current Liabilities Accounts Payable (N2) Taxes Payable Dividends Payable 240,000 13,200 Cash 18,000 Accounts Receivable (N1) 1,192,000 Less: Uncollectible accounts (44,800) 1,147,200 500,000 Inventories Total Current…2. The ABC Company consumes inventory of 67,500 units of components per year. The carrying cost per unit is RO 1.50. The fixed order cost is RO 25 per order. The production planning is 365-day year. a. What is the Economic Order Quantity (EOQ)? Interpret. 219 S b. Calculate and interpret the optimal number of orders to be placed. the ida c. If it takes five days to receive an order from suppliers, at what inventory level should ABC Company place another order.Interpret.
- Anticipated unit sales are January, 5 DOO; February, 4 D00; and March 8 DOO. Finished goods are consistently maintained at 80% of the following month's sales. If units cost $10 each to produce, how much is February's total cost of production? A $0 B. $40,000 C. $72,000 D. $80,000 E. None of these.Great Inc.'s contribution margin ratio is 48% and its fixed monthly expenses are $36,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $140,000? A. $13,440 B. $23,740 C. $67,000 D. $31,2001. The more reliable sales amount from which to base projected sales is b) Latest year a) Latest month c) Latest 2 years d) Latest 5 years 2. Assume: Each factory worker can make 10 units of product per hour. Each worker's wage is P6 per hour. The total labor cost to finish 20,000 units of product is a) P6,000 b) P12,000 c) P120,000 d) P1,200,000 3. The following are steps in the financial planning process. Choose the correct order. A. Analysis and evaluation of projected financial statements B. Setting forecasts on sales, cost, expenses and capital expenditures C. Review and evaluation of projected financial plan D. Preparation of projected financial statements с) В-А-С-D a) C-A-D-B b) В-D-A-C d) A-C-B-D 4. Assume the following projections or forecasts: Retained earnings will increase by P75; current assets will increase by P200; current liabilities will spontaneously increase by P105. Funds need to increaseby a) P380 b) P240 c) P170 d) P20
- Shrek & Fiona Company, manufacturer of a single product, is preparing their annual budget for 2021: Requirements: 1. Prepare a Sales Budget 2. Determine production volume 3. Estimate manufacturing costs and operating expenses a. Purchases (material) budget b. Personnel budget c. Overhead budget d. Selling and administrative budget 4. Determine cash flow and other financial effects a. Cash collection schedule b. Cash disbursement for purchases, factory overhead, and selling and administrative expenses c. Cash budget 5. Formulate Projected Financial Statements (As of December 31, 2021) a. Budgeted Cost of Goods Manufactured b. Budgeted Income Statement c. Budgeted Balance Sheet The following are the assumptions to be used: Shrek & Fiona Company Statement of Financial Position As of December 31, 2020 Current Assets Current Liabilities Cash 18,000 Accounts Payable (N2) 240,000 Accounts Receivable (N1) 1,192,000 Taxes Payable 13,200 Less: Uncollectible accounts (22,400) 1,169,600 Dividends…BELOW IS THE INCOME STATEMENT FOR NEW COMPANY FOR JANUARY 2020 SALES PER UNIT $75 SALES VOLUME 185000 $13,875,000 COSTS COST OF GOODS SOLD 8,960,250 MARKETING AND ADMIN (FIXED) 1,500,000 TOTAL COSTS 10,460,250 OPERATING PROFIT 3,414,750 TAXES 1,126,868 2,287,882 0.33 PROFIT AFTER TAXES PREPARE A BUDGET FOR FEBRUARY TAKING INTO ACCOUNT THE FOLLOWING SALES VOLUME WILL INCREASE 30 PERCENT UNIT SALE VALUE WILL DECREASE 5 PERCENT COST OF GOODS SOLD WILL INCREASE LIKE SALES MARKETING AND ADMIN WILL DECREASE 6 PERCENT TAX RATE WILL INCREASE 3 PERCENTAGE POINTSAssumptionsi. Suppliers of “old” laptop units will allow one month’s credit.ii. Customers are expected to take two months’ credit.iii. Wages will be paid as they are incurred in production.iv. Fixed overhead costs will be paid as they are incurred.v. The stock of finished goods at the end of each quarter will besufficient to satisfy 20% of the planned sales of the followingquarter.vi. The stock of “old” laptop units will be held constant at 1,000units.vii. It may be assumed that the year is divided into quarters ofequal length and that sales, production and purchases arespread evenly throughout any quarter. RequiredProduce, for each quarter of the first year of operations:(a) The cash budget (show all workings).