Lakeside Components wishes to purchase parts in one month for sale in the next. On June 1, the company has 9,000 parts in stock, although sales for June are estimated to total 14,800 parts. Total sales of parts are expected to be 13,900 in July and 10,700 in August. Parts are purchased at a wholesale price of $25. The supplier has a financing arrangement by which Lakeside Components pays 70 percent of the purchase price in the month when the parts are delivered and 30 percent in the following month. Lakeside purchased 3,000 parts in May. Required: a. Estimate purchases (in units) for June and July. 。. Estimate the cash required to make purchases in June and July. Complete this question by entering your answers in the tabs below.

Lakeside Components wishes to purchase parts in one month for sale in the next. On June 1, the company has 9,000 parts in stock, although sales for June are estimated to total 14,800 parts. Total sales of parts are expected to be 13,900 in July and 10,700 in August. Parts are purchased at a wholesale price of $25. The supplier has a financing arrangement by which Lakeside Components pays 70 percent of the purchase price in the month when the parts are delivered and 30 percent in the following month. Lakeside purchased 3,000 parts in May. Required: a. Estimate purchases (in units) for June and July. 。. Estimate the cash required to make purchases in June and July. Complete this question by entering your answers in the tabs below.

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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