7. Short-Term Planning. Paymore Products places orders for goods equal to 75% of itssales forecast in the next quarter. What will orders be in each quarter of the year if thesales forecasts for the next 5 quarters are as shown in the following table?Quarter in Coming YearFollowing YearFirstSecondThirdFourthSales forecast$372$360$336$384First Quarter$384

First Quarter: $270Second Quarter: $252Third Quarter: $288Fourth Quarter: $288Explanation:To compute…

Answered: 7. Short-Term Planning. Paymore…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sexton Products has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $ 930 $ 1,010 $ 970 $ 1,070 Sales in the year following this one are projected to be 10 percent greater in each quarter. a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g ., 32.16.) c. Calculate payments to suppliers assuming a 60-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)
Omegon Limited has the following sales forecasts for its watches next year:First Quarter..10,000 unitsSecond Quarter.5% increase over first quarterThird Quarter 3% increase from second quarterFourth Quarter.8% increase over third quarterWhat is Omegon’s total sales budget in units for next year?1) 43,485 units.2) 42,995 units.3) 40,685 units.4) 40,000 units
FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Type of Box Direct material required per 100 boxes: Paperboard ($0.30 per pound) Corrugating medium ($0.15 per pound). Direct labor required per 100 boxes ($18.00 per hour). Indirect material Indirect labor Utilities Property taxes Insurance Depreciation. Total C $12,150 95,850 31,500 21,000 16,000. 33,500 $210,000 Total 40 pounds 30 pounds 0.25 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 400,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel. Advertising $115,500 23,500…
Infinity Inc. has provided the following projected sales units for the next quarter: Projected Sales Units First month Second month Third month Projected sales units 10,000 12,000 15,000 Desired ending inventory is determined to be 10% of the next month’s projected sales. The expected purchase cost per unit is $50. Compute the budgeted Costs of goods sold for the next quarter. Group of answer choices $1,850,000 $600,000 $500,000 $750,000
Concord Company estimates that 2022 sales will be $34,400 in quarter 1, $41,280 in quarter 2, and $49,880 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending merchandise inventory equal to 10% of the next quarter's expected cost of goods sold. Prepare a merchandise purchases budget by quarter for the first 6 months of 2022. v: v ✓ CONCORD COMPANY Merchandise Purchases Budget $ $ 1 Quarter $ $ 2 $ Six Months
Sales in December (2019) were 4000 units @ sar10 per unit. Monthly sales for the first four months of the next year (2020) are forecasted as follows: Months units January 5,000 February 8,000 March 6, 000 April 5, 000 Unit selling price SAR 10 The following information given to you as follows: Normally 60% of sales are collected in the month incurred and the remainders are collected in the month following the sales. Dallah groups wants closing stock equals 10% of the following month’s budgeted sales in units. on December 31 st , 400 units were on hand. Material required for the required production units are 3,500 Mts , 4,500 Mts., and 6,500 Mts.…
5. Pacific Place has developed the following sales forecast for the following months. Month Sales May $500,000 June $650,000 July $380,000 August $300,000 The collection policy for customers is: 40 percent in the month of sale 60 percent in the following month after sale How much is the expected total cash collections from customers in June? a)$260,000 b)$590,000 c)$610,000 d)$300,000 e)$560,000

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