ats of the same question are to be answered consecutively.. If anv similarity is found with your friends, both of you will get zero. Don't share your answscripV. Aprepared and submitted in Excel Sheet. Use formula where needed.1. XYZ Company distributes a single product. The company's sales and expenses for last month10follow:TotalPer UnitSalesTk 5,00,000Tk 50Variable expensesContribution marginFixed expensesNet operating income2,00,000203,00,000Tk 302,30,000Tk 70,000Requirements:A) What is the monthly break-even point in unit sales and in Taka sales?B) Without resorting to computations, what is the total contribution margin at the break-even point?C) How many units would have to be sold each month to earn a target profit of Tk 1,00,000? Verifyyour answer by preparing a contribution format income statement at the target sales level.D) Refer to the original data. Compute the margin of safety in both Taka and percentage terms.E) What is the company's CM ratio? If sales increase by Tk 50,000 per month and there is no changein fixed expenses, by how much would you expect monthly net operating income to increase?2. You have been asked to prepare a December cash budget for Ahnaf Company, a distributor of 10exercise equipment. The following information is available about the company’s operations:a. The cash balance on December 1 is Tk 45,000.b. Actual sales for October and November and expected sales for December are as follows:OctoberNovemberDecemberCash sales . ...Tk 60,000Tk 75,000Tk 80,000Tk 450,000Tk 520,000Tk 600,000Sales on accountSales on account are collected over a three-month period as follows: 20% collected in the month ofsale, 60% collected in the month following sale, and 18% collected in the second month followingsale. The remaining 2% is uncollectible.c. Purchases of inventory will total Tk 280,000 for December. Thirty percent of a month's inventorypurchases are paid during the month of purchase. The accounts payable remaining from November'sinventory purchases total Tk 161,000, all of which will be paid in December.d. Selling and administrative expenses are budgeted at Tk 430,000 for December. Of this amount,Tk 50,000 is for depreciation.e. A new web server for the Marketing Department costing Tk 76,000 will be purchased for cashduring December, and dividends totaling Tk 9,000 will be paid during the month.f. The company maintains a minimum cash balance of Tk 20,000. An open line of credit is availablefrom the company's bank to bolster the cash position as needed.Requirements:A) Prepare a schedule of expected cash collections for December.B) Prepare a schedule of expected cash disbursements for merchandise purchases for December.C) Prepare a cash budget for December. Indicate in the financing section any borrowing that will beneeded during the month. Assume that any interest will not be paid until the following month.

Since we only answer up to 3 sub-parts, we’ll answer the first 3 sub-parts of question 1. Please…

1. XYZ Company distributes a single product. The company's sales and expenses for last month follow: 10 Total Per Unit Sales. Variable expenses. Contribution margin Fixed expenses. Net operating income. Tk 5,00,000 Tk 50 .... 2,00,000 3,00,000 2,30,000 Tk 70,000 20 Tk 30 Requirements: A) What is the monthly break-even point in unit sales and in Taka sales? B) Without resorting to computations, what is the total contribution margin at the break-even point? C) How many units would have to be sold each month to earn a target profit of Tk 1,00,000? Verify your answer by preparing a contribution format income statement at the target sales level. D) Refer to the original data. Compute the margin of safety in both Taka and percentage terms. E) What is the company's CM ratio? If sales increase by Tk 50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

1. XYZ Company distributes a single product. The company's sales and expenses for last month follow: 10 Total Per Unit Sales. Variable expenses. Contribution margin Fixed expenses. Net operating income. Tk 5,00,000 Tk 50 .... 2,00,000 3,00,000 2,30,000 Tk 70,000 20 Tk 30 Requirements: A) What is the monthly break-even point in unit sales and in Taka sales? B) Without resorting to computations, what is the total contribution margin at the break-even point? C) How many units would have to be sold each month to earn a target profit of Tk 1,00,000? Verify your answer by preparing a contribution format income statement at the target sales level. D) Refer to the original data. Compute the margin of safety in both Taka and percentage terms. E) What is the company's CM ratio? If sales increase by Tk 50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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