Dolce Co. estimates its sales at 180,000 units in the first quarter andthat sales will increase by 18,000 units each quarter over the year. Theyhave, and desire, a 25% ending inventory of finished goods. Each unitsells for $25. 40% of the sales are for cash. 70% of the creditcustomers pay within the quarter. The remainder is received in thequarter following sale.Production in units for the third quarter should be budgeted at:A. 274,500B. 207,000C. 216,000D. 220,500

Step 1: Understand the given dataFirst-quarter sales: 180,000 units.Sales increase by: 18,000 units…

Answered: Dolce Co. estimates its sales at…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EA: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is...

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Similar questions

Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
If the sales forecast estimates that 50,000 units of product will be sold during the following year, should the factory plan on manufacturing 50,000 units in the coming year? Explain.
Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm’s cash conversion cycle? If annual sales are $4,380,000 and all sales are on credit, what is the firm’s investment in accounts receivable? How many times per year does Negus Enterprises turn over its inventory?
Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
questions. of general account
Sunland Company estimates its sales at 400000 units in the first quarter and that sales will increase by 15000 units for each subsequent quarter during the year. The company has, and desires, an ending finished goods inventory to 25% of the next quarter's sales. Each unit sells for $25.40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is collected in the quarter following the sale. Cash collections for the third quarter are budgeted at O $10682500. O $8815000. O $6167500. $11314375.
please help me
Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 30% of the sales are for cash. 65% of the credit customers pay within the quarter and 5% will not be collected from the succorers.. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at O a. $3,051,000. O b. $4,428,000. O c. $5,319,000. O d. $5,156,000. e. None of the answers is correct Clear my choice
Bear, Inc. estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. Bear calculates a 25% ending inventory of finished goods based on next month's sales. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at
Sunland Company estimates its sales at 180000 units in the first quarter and that sales will increase by 17000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at O $5273500. O $3026500. O $4387000. O $6057389.
Swifty Corporation estimates its sales at 210000 units in the first quarter and that sales will increase by 21000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25.40% of the sales are for cash, 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at O $7182000 O $3559500. O $6205500. O $5166000.
Worthington Company expects that cash sales will be 20% of total sales, credit card sales will be 50% of total sales, and account sales will be 30% of total sales. Credit card sales are collected in the month following the sale, net a 3% credit card fee. This means that if the sale is $100, the credit card company's fee is $3, and Worthington receives $97. Account sales will be collected as follows: 40% in the first month following the sale, 50% in the second month following the sale, 8% in the third month following the sale, and 2% never collected. The following table identifed the projected sales for the first year of operations: Month Sales Month January $12,369,348 July Sales $21,747,839 February 15,936,293 August 14,908,534 March 13,294,309 September 11,984,398 April 19,373,689 October 18,894,535 May 20,957,566 November 21,983,545 June 18,874,717 December 20,408,367 Complete the following statement showing the cash expected each month from the collections of these sales. Round all…

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