Chapter 3 A company has prepared the following projections for a year 2021 The data for the 2020 is given below Sales 21000 units Selling Price per unit RO.40 Variable Costs per unit RO.25 Total Costs per unit RO.35 Credit period allowed One Month. For the year 2021 company proposes to increase the credit period allowed to its customers from one month to two month. It is expected that due to change in policy as above will increase the sales by 8 % Calculate the closing receivable for the year 2021

Chapter 3 A company has prepared the following projections for a year 2021 The data for the 2020 is given below Sales 21000 units Selling Price per unit RO.40 Variable Costs per unit RO.25 Total Costs per unit RO.35 Credit period allowed One Month. For the year 2021 company proposes to increase the credit period allowed to its customers from one month to two month. It is expected that due to change in policy as above will increase the sales by 8 % Calculate the closing receivable for the year 2021

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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Jules company as we know produces two (2) products, GK320 and GK340. The following sales forecast for both products was decided on for the financial year January 1, 2020 to December 31, 2020: Details Q1 Q2 Q3 Q4 Total GK320 6,500 5,200 5,500 4,000 21,200 GK340 4,800 4,600 4,500 3,700 17,600 Notes: (a) The company planned to sell both GK320 and GK340 for $50 each. (b) The sales forecast for the first quarter of 2021 is 5,900 units of GK320 and 4,000 units of GK340. (c) The closing stock level for both products at the end of each quarter is to be held at a level equal to twenty percent (20%) of the budgeted sales for the next quarter. (d) At the start of 2020 there were in stock 1,200 units of GK320 and 950 units of GK320. (e) To make one unit of GK320 four (4) units of raw material A are required, while six (6) units of raw material B are required to make one unit of GK340. The cost of raw material A is $20 per unit, while the…
Jules company as we know produces two (2) products, GK320 and GK340. The following sales forecast for both products was decided on for the financial year January 1, 2020 to December 31, 2020: Details Q1 Q2 Q3 Q4 Total GK320 6,500 5,200 5,500 4,000 21,200 GK340 4,800 4,600 4,500 3,700 17,600 Notes: (a) The company planned to sell both GK320 and GK340 for $50 each. (b) The sales forecast for the first quarter of 2021 is 5,900 units of GK320 and 4,000 units of GK340. (c) The closing stock level for both products at the end of each quarter is to be held at a level equal to twenty percent (20%) of the budgeted sales for the next quarter. (d) At the start of 2020 there were in stock 1,200 units of GK320 and 950 units of GK320. (e) To make one unit of GK320 four (4) units of raw material A are required, while six (6) units of raw material B are required to make one unit of GK340. The cost of raw material A is $20 per unit, while the…
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Initiating a cash discount Gardner Company currently makes all sales on credit and offers no cash discount. The firm is considering offering a 2% cash discount for payment within 15 days. The firm's current average collection period is 60 days, sales are 40,000 units, selling price is $46 per unit, and variable cost per unit is $35. The firm expects that the change in credit terms will result in an increase in sales to 45,000 units, that 70% of the sales will take the discount, and that the average collection period will fall to 30 days. If the firm's required rate of return on equal-risk investments is 10%, should the proposed discount be offered? (Note: Assume a 365-day year.)
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2021 2020 Sales P2,080,000 P2,000,000 Cost of sales 1,755,000 1,500,000 Gross margin 325,000 500,000 Unit selling price decreased 20% at the start of 2019. The change in gross profit due to the decrease in selling price is: P520,000 increase P80,000 increase P520,00 decrease P80,000 decrease P600,000 decrease P600,000 increase
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Question A All That Remains Products has projected sales for next year of: Q1 Q2 Q3 Q4 Sales $ 77,300 $ 80,750 $ 87,150 $ 95,040 The company places orders each quarter that are 65 percent of the following quarter's sales and has a 60-day payables period. What is the accounts payable balance at the end of the third quarter? Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line.
Question 2 A company is considering an issue of Commercial Paper (CP) to raise $15 million. The issue will mature in 30 days. It will be issued at a discount of 40 basis points. The dealer will charge an annualized fee of 10 pasis points and will require a backup letter 0.1% 0,4% of credit (L/C) to be issued in its favour at a cost of 25 basis points. 0.25% Required: Assuming a 360-day year, calculate: Par value Dollar discount a) the usable funds that the company will raise upon issue of the CP b) the pro-rated dealer fee c) the pro-rated L/C fee d) the effective annual interest that the company is paying for the credit it raises through the issue of CP
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