HOM Enterprises estimated the following sales for the first six months of 2022: Month Estimated Sales Quantity January 50,000 February 45,000 March 47,000 April 42,000 Мay 54,000 June 89,000 The following information was provided: - The selling price per unit is $10. -All sales are on credit. In the month of sale, 65% is collected and the remaining 35% is collected the following month. - The company wants to maintain ending inventory at 15% of the following month's sales. - The ending inventory as of December 31 was 14,000 units. - The accounts receivable balance as of December 31 was $87,000

HOM Enterprises estimated the following sales for the first six months of 2022: Month Estimated Sales Quantity January 50,000 February 45,000 March 47,000 April 42,000 Мay 54,000 June 89,000 The following information was provided: - The selling price per unit is $10. -All sales are on credit. In the month of sale, 65% is collected and the remaining 35% is collected the following month. - The company wants to maintain ending inventory at 15% of the following month's sales. - The ending inventory as of December 31 was 14,000 units. - The accounts receivable balance as of December 31 was $87,000

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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Assume a manufacturing company,s estimated sales for january,febuar and march are 1,00,000 , 1,20,000 , 1,10,000 respectively.the cost of goods sold is always 40 % of its sales.the company always maintains ending merchandise inventory equal to 10%of next motn cost of goods sold.it pays for 25% of its merchandise purchase in the month of the purchase and remaining 75%in the subsequent month .What is the account payable balance at the end of febuary? please proper explantion thnx
3.Wanlaya Corp has a desired ending inventory level of 40% of next months estimated sales. In turn, their cost of goods sold is 60% , and their forecasted sales for the months for March, April, May, June, July, and August are as follows : $600,000, $700,000, $800,000, $750,000, $900,000, and $850,000 respectively. Purchases for the months of February and March were $350,000 and $400,000 respectively and their purchases are paid as follows: 60% during the month of the purchase, 40% in the next month. Required: Prepare purchases and disbursement for purchases budgets for the months of April, May, and June
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