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?

Q: Assume a merchandising company's estimated sales for January, February, and March are $119,000,…

A: Budgeted cash disbursement means the amount of cash which is expected to be paid by the entity…

Q: Shadee Corporation expects to sell 550 sun shades In May and 380 In June. Each shades sells for $17.…

A: Total cash receipts in a budget refer to the sum of all the cash inflows or revenues that an…

Q: Assume a merchandising company’s estimated sales for January, February, and March are $106,000,…

A: Cash disbursements for February = (Budgeted purchases for January X 75%) + (Budgeted purchases for…

Q: Victory Enterprise manufactures cabinets. Projected sales in units are as follows: October – 4.600…

A: We have to compute the goods produced in December Month WN-1 Computation of opening inventory,…

Q: XYZ Co. has forecasted July sales of 1,100 units. The company maintains ending inventory equal to…

A: Production budget is one of useful budget being prepared in business. It shows how many units needs…

Q: Schrank Company is trying to decide how many units of merchandise to order eoch month. Compony…

A: The budget is prepared to estimate the requirements for the period. The purchase budget is prepared…

Q: Cahuilla Corporation predicts the following sales in units for the coming four months: May July 470…

A: Budgeting anticipates revenue and expenditures for a future period based on the past performance and…

Q: es Shadee Corporation expects to sell 540 sun shades in May and 450 in June. Each shades sells for…

A: The sales budget is prepared to estimate the sales revenue for the current period. The cash…

Q: Tiny Corp has the following information: Inventory at the end of May, for example, was only 40…

A: Solution:  Number of units that Tiny must produce in June and July are present in the following…

Q: Rocker Company expects to sell 8,500 units for $170 each for a total of $1,445,000 in January and…

A: Answer) Calculation of Budgeted Purchases for January and February    January  February…

Q: Victor Company expects to sell 9,000 units for $180 each for a total of $1,620,000 in January and…

A: Here in this question, we are required to calculate inventory, purchases and cost of goods sold.…

Q: Assume a merchandising company's estimated sales for January, February, and March are $118,000,…

A: JanuaryFebruaryMarchSales $ 1,18,000 $ 1,38,000 $ 1,28,000Cost of goods sold $    41,300 $    48,300…

Q: Johnson Corporation has the following sales forecasts for the first three months of the current…

A: Computation of the cash balance at the end of January:Cash balance, January 1$25,000Add: Cash…

Q: MAXI Co. has the following information:   *Projected sales for four (4) months are as follows:…

A: Budgets are the forecasts or estimates that are made for future period of time. It can be sales…

Q: Croy Inc. has the following projected sales for the next five months: Month Sales in Units 3,850…

A: Direct materials required and cost of direct materials can be found out using the production…

Q: All sales are made on credit terms of net 30 days and are collected the following month and no bad…

A: Income statement means a statement which shows the expenses and revenue of the organisation during a…

Q: Company expects sales of Product F to be 59,000 units in April, 75,000 units in May and 70,000 units…

A: Estimated Production = Estimated Sales + Ending inventory - Beginning inventory

Q: October, November, and December, CVM Inc. expect to sell 50,000, 48,000, and 51,000 units…

A: Sales of October = 50,000 Sales of November = 48,000 Sales of December = 51,000 End of month…

Q: Outdoor Company expects to sell 6,500 units for $175 each for a total of $1,137,500 in January and…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: es Shadee Corporation expects to sell 560 sun shades in May and 410 in June. Each shades sells for…

A: CASH BUDGETA cash budget is an estimation of the cash flows of a business over a specific period of…

Q: Cahuilla Corporation predicts the following sales in units for the coming four months: April May…

A: The number of units of product that must be manufactured is defined by the production budget, which…

Q: Mario's Record Shop, a retail store, has an average gross profit ratio of 30 percent. The sales…

A: The purchases budget can be calculated using the following formula: Purchases = (Cost of Sales +…

Q: The company anticipates the following sales, in units January February March Month Sales 528 573 551…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Assume a company’s estimated sales for January, February, and March are 36,000 units, 37,000 units,…

A: Solution: Budgeted units sales for January = 36000 units Budgeted production units is computed as =…

Q: March 45,000 85% of sales are collected in the month of the sale and the remainder is collected in…

A: particulars  amount $ Cash balance $     25,000.00 add:customer collection  $58,950…

Q: CO, SRL anticipates the following sales in the given months: March 42,000 units April 59,000 units…

A: The manufacturing companies have to plan the required production levels for future so as to meet the…

Q: Rocker Company expects to sell 7,000 units for $180 each for a total of $1,260,000 in January and…

A: Budgeted cost of goods sold in March = 4,300 * $260 * 60%= $670,800

Q: Assume a company's estimated sales for January, February, and March are 30,000 units, 31,000 units,…

A: Production budget:- This budget is prepared to estimate the number of units to be produced for…

Q: Shadee Corporation expects to sell 570 sun shades in May and 440 in June. Each shades sells for $12.…

A: CASH BUDGET A cash budget is an estimation of the cash flows of a business over a specific period…

Q: Assume a merchandising company's estimated sales for January, February, and March are $107,000,…

A: Cash disbursement schedule :— This budget is prepared to estimate the cash payment for expenses…

Q: Fumiture, Inc., estimates the following number of mattress sales for the first four months of 2019…

A: Production of number of mattresses can be computed by, =Sales in units + ending inventory -…

Q: Croy Inc. has the following projected sales for the next five months:      Month Sales in Units…

A: Budgeted production = Budgeted sales + Desired ending inventories - Beginning inventory

Q: next month's sales. How many mattresses should be produced in the first quarter of 2019?

A: Production Budget The production budget calculates the number of units of products manufactured by a…

Q: In October, November, and December, CVM Inc. expects to sell 50,000, 48,000, and 51,000 units,…

A: Desired ending inventory = following month's sales x 40% Budgeted production = Budgeted sales +…

Q: Hawaiian Breeze Limited forecasts its sales in units for the next four months as follows: March…

A: A budget is an estimate of income and expenditures on the basis of past performance or industry…

Q: Mesh Merchandising Company expects to purchase $86,000 of materials in July and $118,000 of…

A:

Q: Shadee Corporation expects to sell 570 sun shades in May and 430 in June. Each shades sells for $18.…

A: Budget is the forecast or estimate made for future period. Expected cash receipts means cash to be…

Q: Croy Incorporated has the following projected sales for the next five months: Month April May June…

A: Production Budget is prepared by the company  to estimate the production requirement  to fulfill the…

Q: Nyanza, Incorporated anticipates sales of 55,000 units, 53,000 units, and 56,000 units in July,…

A: Units to be produced in July54,400Explanation:Step 1:Calculation of the numbers of units plan to…

Q: Majan Company expects sales of Product G to be 30,000 units in April, 40,000 units in May and 50,000…

A: Production budget means how many units to be produced in a particular period of time.

Q: Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March…

A: The production budget is referred as a detailed plan that outlines number of units the company needs…

Q: Shadee Corporation expects to sell 510 sun shades in May and 350 in June. Each shades sells for $13.…

A: Cash Collection: It implies the process of collecting cash from the customers to whom the company…

Q: ing finished goods inver

A: Particulars October November December January Sales (in units) A. 4600 5000 4200 6000 +Closing…

Q: A company budgets the following merchandising purchases: Aprit $70.000, May $90,000; June: $60,000…

A: The accounts payable represents the amount due to suppliers during the period. The purchase of…

Q: Trailers Company expects to sell 8,500 units for $175 each for a total of $1,487,500 in January and…

A: Here in this question, we are required to calculate inventory, purchases and cost of goods sold.This…

Q: (Production schedule) The projected sales, in units,for Einstein Inc. By month for the first four…

A: Ending inventory = 1/2 of next month estimated sales January = 12,000*1/2 = 6,000 units February  =…

Q: On January 1 the company had 330 widgets in finished good inventory. The company policy is to…

A: As the question specifies that the closing stock for every month would be 15% of its next month…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.