5 QUESTION 1-CompulsoryGlorious Nature Company, a local business with twenty branches in the country has been affectedby numerous emerging competitors and is considering shutting down the business for good if thecash flow for the next two months are not showing good prospects.The CEO is asking for a cash budget for May and June 2023 to assist the company's managementto consider whether to shut down the business for good. Past records reveal that 20% of all creditsales are collected during the month of sale, 60% in the month following the sale, 10% in thesecond month following the sale and 10% in the third month following the sale.The company pays for 75% of purchases in the month after purchase, and the balance is paid inthe month following that.Selling expenses amount to $6,600 per month plus 15% of monthly sales. Administrative expensesare estimated to be at $13,100 per month, which includes $3,800 of depreciation expense. Financeexpenses are $1,750 per month. All selling and distribution, administrative, and finance and otherexpenses are paid for when incurred.The company is also planning to carry out its first retrenchment exercise during May 2023 at acost of $20,600. A second phase of retrenchment which will cost the company $39,000 will bepaid during June 2023. The interest due for bank loans is $1,650 and paid at the end of everyquarter of the year. The company's expected Cash at Bank balance on 1 May 2023 is $9,200.Details of Sales and Purchases as follows:Sales$75,000$66,000$88,000$60,500$71,500February 2023March 2023April 2023May 2023June 2023Purchases$38,500$33,000$55,000$27,500$38,500

Cash Inflows:Cash inflows are the collections from credit sales. As per the given information, the…

Glorious Nature Company, a local business with twenty branches in the country has been affected by numerous emerging competitors and is considering shutting down the business for good if the cash flow for the next two months are not showing good prospects. The CEO is asking for a cash budget for May and June 2023 to assist the company's management to consider whether to shut down the business for good. Past records reveal that 20% of all credit sales are collected during the month of sale, 60% in the month following the sale, 10% in the second month following the sale and 10% in the third month following the sale. The company pays for 75% of purchases in the month after purchase, and the balance is paid in the month following that.

Glorious Nature Company, a local business with twenty branches in the country has been affected by numerous emerging competitors and is considering shutting down the business for good if the cash flow for the next two months are not showing good prospects. The CEO is asking for a cash budget for May and June 2023 to assist the company's management to consider whether to shut down the business for good. Past records reveal that 20% of all credit sales are collected during the month of sale, 60% in the month following the sale, 10% in the second month following the sale and 10% in the third month following the sale. The company pays for 75% of purchases in the month after purchase, and the balance is paid in the month following that.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter6: Statistical Inference

Section: Chapter Questions

Problem 24P: The manager of an automobile dealership is considering a new bonus plan designed to increase sales...

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The manager of an automobile dealership is considering a new bonus plan designed to increase sales volume. Currently, the mean sales volume is 14 automobiles per month. The manager wants to conduct a research study to see whether the new bonus plan increases sales volume. To collect data on the plan, a sample of sales personnel will be allowed to sell under the new bonus plan for a one-month period. a. Develop the null and alternative hypotheses most appropriate for this situation. b. Comment on the conclusion when H0 cannot be rejected. c. Comment on the conclusion when H0 can be rejected.
Poleski Manufacturing, which maintains the same level of inventory at the end of each year, provided the following information about expenses anticipated for next year: The selling price of Poleskis single product is 16. In recent years, profits have fallen and Poleskis management is now considering a number of alternatives. Poleski wants to have a net income next year of 250,000, but expects to sell only 120,000 units unless some changes are made. The president of Poleski has asked you to calculate the companys projected net income (assuming 120,000 units are sold) and the sales needed to achieve the companys net income objective for next year. Also, compute Poleskis contribution margin per unit, contribution margin ratio, and break-even point for next year. The worksheet CVP has been provided to assist you. Note that the data from the problem have already been entered into the Data Section of the worksheet.
Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000 (as shown in the state-ment below)—inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loanfor some new equipment. Kamal would like to improve the profitline to $25,000 so he can obtain the bank’s approval for the loan.% OF SALESSales $250,000 100%Cost of supply chain purchases 175,000 70%Other production costs 30,000 12%Fixed costs 30,000 12%Profi t 15,000 6%a) What percentage improvement is needed in a supply chainstrategy for profit to improve to $25,000? What is the cost ofmaterial with a $25,000 profit?b) What percentage improvement is needed in a sales strategy forprofit to improve to $25,000? What must sales be for profit toimprove to $25,000?
CASE: Best Buy Pays Big Bucks for CEO Best Buy, the Richfield, Minnesota retailer awarded its new CEO, Hubert Joly, a pay package valued at as much as $32 million for three years. The slumping consumer-electronics chain with 1,400 stores had been without a permanent CEO for about five months.Mr. Joly, who is a native of France, will be paid $6.25 million if he is unable to get a visa to work in the United States. The deal further calls for Mr. Joly to get a base salary of $1.175 million for the coming years, but guarantees him an annual long-term cash award of no less than $8.75 million for the same period. Mr. Joly insisted on payments to make up for the compensation he leaves behind as he leaves his job as CEO of the hospitality chain Carlson Companies.Best Buy defended the arrangement saying that it had to compensate Mr. Joly for the money he left behind at Carlson, but that most of future pay is tied to incentives based on his performance for the company. According to one…
On April 1, 2024, Washtenaw Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Washtenaw's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Washtenaw agrees to lend $480,000 to its supplier using a 12-month, 12% note. Required: Record the following transactions for Washtenaw Corporation: 1. The loan of $480,000 and acceptance of the note receivable on April 1, 2024. 2. The adjusting entry for accrued interest on December 31, 2024. 3. Cash collection of the note and interest on April 1, 2025. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the loan of $480,000 and acceptance of the note receivable on April 1, 2024. 2 Note: Enter debits before credits. Date April 01, 2024 Record entry Credit > View general journal
2. Patterson Co. values, advertises and sells residential property on behalf of the customers. The co. has been in business for only a short time and is preparing a cash budget for the first four months of 2016. Expected sales of residential properties are as follows: 2016 Year Month Unit Sold 2015 December 10 January 10 2016 February 15 2016 Page 8 of 10 March 25 2016 April 30 The average price of each property is $180,000 and Patterson Co. charges a fee of 3% of the value of each property sold. Patterson Co. receives 1% in the month of sales and the remaining 2% in the month after sales. The Company has nine employees who are paid on a monthly basis. The average salary per employees is $35,000 per year. If more than 20 properties are sold in a given month, each employee is paid in that month a bonus of $140 for each additional property sold. Variable expenses are incurred at the rate of 0.5% of the value of each property sold and these expenses are paid in the month of sales. Fixed…
Check My Work (2 remaining) The manager of an automobile dealership is considering a new bonus plan designed to increase sales volume. Currently, the mean sales volume is 24 automobiles per month. The manager wants to conduct a research study to see whether the new bonus plan increases sales volume. TO collect data on the plan, a sample of sales personnel will be allowed to sell under the new bonus plan for a one-month period. a. Which form of the null and alternative hypotheses most appropriate for this situation? Ho: A is -Select your answer - H.: P is - Select your answer - b. Select the conclusion when Ho cannot be rejected. Select your answer - c. Select the conclusion when Ho can be rejected. -Select Your answer -
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K Fast Feet Inc makes running shoes and they are anticipating the incurrence of the following operating expenses during the upcoming year. Sales commission Salaries Cost $5 per pair of shoes sold $510,000 $3.50 per pair of shoes sold Shipping expenses Bad debt expense Depreciation on sales vehicles 1.5% of sales revenue Advertising $24,000 $28,500 The company plans to sell 124,000 pairs of shoes at $100 per pair. What will Fast Feet Inc budget for cash disbursements related to operating expenses? OA. $1,740,500 OB. $510,000 OC. $1,592,500 OD. $1,616,500
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