Exercise 13-36 (Static) Estimate Purchases and Cash Disbursements (LO 13-3, 4) Ellot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 16,800 nozzles in stock, although the latest estimate for August production indicates a requirement for only 15,000 nozzles. Total uses of the nozzle are expected to be 14,700 in September and 15,540 in October. Nozzles are purchased at a wholesale price of $8. Eliot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 21,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September.
Exercise 13-36 (Static) Estimate Purchases and Cash Disbursements (LO 13-3, 4) Ellot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 16,800 nozzles in stock, although the latest estimate for August production indicates a requirement for only 15,000 nozzles. Total uses of the nozzle are expected to be 14,700 in September and 15,540 in October. Nozzles are purchased at a wholesale price of $8. Eliot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 21,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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JJ. 271.
Transcribed Image Text:Exercise 13-36 (Static) Estimate Purchases and Cash Disbursements (LO 13-3, 4)
Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle.
The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part.
Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 16,800 nozzles in stock,
although the latest estimate for August production indicates a requirement for only 15,000 nozzles. Total uses of the nozzle are
expected to be 14,700 in September and 15,540 in October.
Nozzles are purchased at a wholesale price of $8. Eliot pays 25 percent of the purchase price in cash in the month when the parts are
delivered. The remaining 75 percent is paid in the following month. Eliot purchased 21,000 parts in July.
Required:
a. Estimate purchases of the nozzle (in units) for August and September.
b. Estimate the cash disbursements for nozzles in August and September.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Estimate purchases of the nozzle (in units) for August and September.
September
Merchandise to be purchased in units
August
Exercise 13-36 (Static) Estimate Purchases and Cash Disbursements (LO 13-3, 4)
Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle.
The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part.
<Required A
Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 16,800 nozzles in stock,
although the latest estimate for August production indicates a requirement for only 15,000 nozzles. Total uses of the nozzle are
expected to be 14,700 in September and 15,540 in October.
Nozzles are purchased at a wholesale price of $8. Eliot pays 25 percent of the purchase price in cash in the month when the parts are
delivered. The remaining 75 percent is paid in the following month. Eliot purchased 21,000 parts in July.
Required:
a. Estimate purchases of the nozzle (in units) for August and September.
b. Estimate the cash disbursements for nozzles in August and September.
Month of payment
August
September
Required B >
Complete this question by entering your answers in the tabs below.
Required A Required B
Estimate the cash disbursements for nozzles in August and September.
Total
< Required A
Required >
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