outback Co. was organized to sell a single product that carries a 45 day warranty against defects. Engineering estimates indicates that 12% of the units sold will prove defective and require an average repair cost of $20 per unti. During outbacks first month of operations, total sales were 200 untis; by the end of the month, nine defective units had been repaired. The Liability for product warrantees at month end should be. a.$180 b.$660 c.$300 d.$480

The Constantine Corporation purchases robes for $12 per unit and then sells them for $25 per unit. The company estimated the following sales for the first four months of the current year: January 8,000 units, February 12,000 units, March 9,000 units and April 7,000 units. The company has rent expense of $5,600 and personnel salaries of $32,000 each month as well as variable advertising costs of $3 per unit based on monthly sales. Ending inventory at December 31st is 2,000 units and for each month after that is expected to be 10% of the next month's sales. What is the company's budgeted net income for February?

Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,304, $36,973, and $39,905, respectively. Round to the nearest penny, two decimal places.

Suits Inc. expect to sell 8,500 units for $190 each in January, 2,500 suits for $200 each in February and 4,700 suits in March for $210 each.  Sales revenue is collected 75% in the month of sales, and 20% the next month.  (5% of sales are never collected.) Jan. 1 accounts receivable are $290,000.  It is expected that 80% of the Jan. 1 receivable swill be collected, and the rest will never be collected. Cost of Goods sold is 70% of sales revenue. Cost of goods sold is paid 60% in the month of sale and 40% in the next month.  There are accounts payable of $240,000 on Jan. 1. Our cash balance on Jan. 1 is $60,000.  We want to keep a minimum cash balance of $50,000 at the end of each month.  We can borrow at the beginning of any month in increments of $10,000.  The interest rate is 12% annually, i.e. 1% a month.  Interest is paid monthly at the end of the month. Prepare a monthly schedule of cash receipts, cash disbursements and borrowing and interest payments (if required) for January and…