Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:   Sales are budgeted at $390,000 for November, $370,000 for December, and $360,000 for January. Collections are expected to be 40% in the month of sale and 60% in the month following the sale. The cost of goods sold is 80% of sales. The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $24,500. Monthly depreciation is $15,500. Ignore taxes.   Balance Sheet October 31 Assets   Cash $ 20,500 Accounts receivable 70,500 Merchandise inventory 218,400 Property, plant and equipment, net of $572,500 accumulated depreciation 1,094,500 Total assets $ 1,403,900 Liabilities and Stockholders' Equity   Accounts payable $ 254,500 Common stock 820,500 Retained earnings 328,900 Total liabilities and stockholders' equity $ 1,403,900   The cost of December merchandise purchases would be:

Keggler's Supply is a merchandiser of three different products. Beginning inventories for March are footwear, 21,000 units; sports gear, 81,500 units; and apparel, 49,000 units. Management believes each of these inventories is too high and begins a new policy that ending inventory in any month should equal 31% of the budgeted sales units for the following month. Budgeted sales units for March, April, May, and June follow. Footwear Sports gear Apparel FOOTWEAR Required: 1. Prepare a merchandise purchases budget (in units only) for each product for each of the months of March, April, and May. Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of ending inventory to future sales Less: Beginning inventory units Total required units Less: Beginning inventory units Units to purchase SPORTS GEAR Total required units Budgeted Sales in Units March April May 15,000 23,500 32,000 69,500 89,000 95,500 42,000 38,000 32,000 Add: Desired ending inventory Next…

Offenbach & Son has just made its sales forecasts and its marketing department estimates that the company will sell 220,200 units during the coming year. In the past, management has maintained inventories of finished goods at approximately one month's sales. The inventory at the start of the budget period is 14,800 units. Sales occur evenly throughout the year. Required: Estimate the production level required for the coming year to meet these objectives. (Do not round intermediate calculations.) Required production in units

Acme Company sells lumber and general building supplies to building contractors. Data regarding the store's operations follow: Sales are budgeted at $360,000 for November, $330,000 for December, and $310,000 for January. Collections are expected to be 90% in the month of sale and 10% in the month following the sale. The cost of goods sold is 70% of sales. The company desires to have an ending merchandise inventory equal to 70% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $25,700. Monthly depreciation is $18,000. Ignore taxes.

Top executive officers of Tildon Company, a merchandising firm, are preparing the next year’s budget. The controller has provided everyone with the current year’s projected income statement.     Current Year Sales revenue $ 1,600,000   Cost of goods sold   1,120,000   Gross profit   480,000   Selling & administrative expenses   190,000   Net income $ 290,000       Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $30,000. The president has announced that the company’s goal is to increase net income by 15 percent.    Required The following items are independent of each other:   Prepare a pro forma income statement. What percentage increase in sales would enable the company to reach its goal? The market may become stagnant next year, and the company does not expect an increase in sales revenue. The production manager believes that an improved production…

Sound Investments, Inc., is a large retailer of stereo equipment. The controller is about to prepare the budget for the first quarter of 20x2. Past experience has indicated that 70 percent of the store's sales are cash sales. The collection experience for the sales on account is as follows: 85 percent during month of sale 10 percent during month following sale 5 percent uncollectible The total sales for December 20x1 are expected to be $203,000. The controller feels that sales in January 20x2 could range from $113,000 to $173,000. Required: 1. Demonstrate how financial planning can be used to project cash receipts in January of 20x2 for three different levels of January sales. Use the following columnar format. Cash receipts in January 20x2: From December sales on account From January cash sales From January sales on account Total cash receipts Total Sales in January, 20x2 113,000 $ 143,000 $ 173,000 $ 0 $ 0 $ 0

Weller Industrial Ges Corporation supplies acetylene and other compressed geses to industry. Dets regarding the store's operations follow: Sales are budgeted at $300,000 for November, $320,000 for December, and $310,000 for January Collections are expected to be 75% in the month of sale and 25% in the month following the sale. The cost of goods sold is 76% of sales. The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $20, 600. Monthly depreciation is $20,400. Ignore taxes Balance Sheet October 31 Assets Cash $ 21,400 Accounts receivable 82,400 Merchandise inventory 182,400 Property, plant and equipment (net of $590,000 accumulated depreciation) 1,000,000 Total assets $1,286, 200 Liabilities and Shareholder's Equity Accounts payable $ 195,400 Common shares 550,000 Retained earnings 540,800 Total liabilities and…

Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. Required a. October sales are estimated to be $340,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget. b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts. c. The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $12,900. Assume that all purchases are made…

Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows: Direct materials. Each unit requires 0.60 pounds of raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter's budgeted materials requirements. Prepare a direct materials budget for the second quarter. (Enter "per unit" answers in two decimal places.) Units to be produced RIDA INC. Direct Materials Budget Second Quarter Materials needed for production (pounds) Total materials requirements (pounds) Materials to be purchased (pounds) Budgeted cost of direct materials purchases 240,000 units

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:   Sales are budgeted at $460,000 for November, $440,000 for December, and $430,000 for January. Collections are expected to be 45% in the month of sale and 55% in the month following the sale. The cost of goods sold is 80% of sales. The company would like to maintain ending merchandise inventories equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $25,200. Monthly depreciation is $16,200. Ignore taxes.   Balance SheetOctober 31 Assets     Cash $ 20,000 Accounts receivable   70,000 Merchandise inventory   153,000 Property, plant and equipment, net of $572,000 accumulated depreciation   1,094,000 Total assets $ 1,337,000       Liabilities and Stockholders' Equity     Accounts payable $ 254,000 Common stock   820,000 Retained earnings…