Lux Dream Labs sold 6,200 units of its premium collagen cream during October 2023 at a price of $180 per unit. The company offers a full refund for any product returned within 30 days. Based on historical trends, Lux Dream Labs expects that 2.5% of sales will be returned. Estimate the sales returns in dollars for October 2023.
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- Jim's Espresso expects sales to grow by 10.4% next year. Using the following statements LOADING... and the percent of sales method, forecast: a. Costs b. Depreciation c. Net Income d. Cash e. Accounts receivable f. Inventory g. Property, plant, and equipment (Note: Make sure to round all intermediate calculations to at least five decimal places.) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement Sales $207,620Costs Except Depreciation (100,360)EBITDA $107,260Depreciation (6,050)EBIT $101,210Interest Expense (net) (500)Pretax Income $100,710Income Tax (35,249)Net Income $65,461 Balance Sheet Assets Cash and Equivalents $14,990Accounts Receivable 1,980Inventories…Kraft Bakeries introduced in 2019 a new line of frozen apple pie. For 2019, sales by quarter were as follows: 21,000 units, 26,900 units, 24,500 units, and 30,400 units. Because of aggressive marketing and promotion, the company expects that sales for each quarter of 2020 will be 25% higher than the respective quarter in 2019. The selling price per unit in 2020 is expected to be $5.80. What are the expected sales, in units and dollars, for the second quarter of 2020? For the third quarter of 2020?Martin Corporation’s expected sales revenue for the 4th quarter of 2023 is as follows: Oct ............. $400,000Nov............. 450,000Dec ............ 500,000 All sales are on account (credit) with 50 percent collected in the month of sale, 30 percent collected in the month after sale, and 20 percent collected in the second month after sale. Assume there are no uncollectable accounts. Martin's cash collections in December are expected to be.
- Ivanhoe Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter HD-240 1 4,300 2 6,020 3 4 6,880 8,600 The January 1, 2022, inventory of HD-240 is 1,720 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter and in total for 2022.The Best Appliances had the following revenue over the past five Wars, To predict revenues for 2018, The Best Appliances uses the average for the Past five years. The company’s breakeven revenue is $800,000 per year. What is The Best Appliance’s predicted margin of safety in dollars for 2018? $800,000 $0 $200,000 $100,000Chatsworth Company Month Expected Sales July $40,000 August $50.000 September $30,000
- In January 2020, a retailer sells 100 paper shredders to customers for $100 each. The terms of the sales include a right for the customer to return a shredder within 180 days of the sale date. Based on historical trends, the retailer uses the expected value method and estimates a 40% probability that 8 paper shredders will be returned, a 45% probability that 9 paper shredders will be returned, and a 15% probability that 12 paper shredders will be returned. The retailer also concludes it is highly probable that there will not be a significant reversal of revenue recognized based on this return estimate. Thus, the agreement is a valid contract. Assume no actual returns in January 2020. Determine (1) the transaction price for the sale of shredders for January 2020, and (2) the refund liability balance on January 31, 2020. Round expected returns to the nearest whole unit in your calculations.In the coming year, Marigold, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $ 17.00 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30% in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales units 20,000 41,000 59,000 82,000 Prepare Marigold, Inc.'s cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Round "Budgeted sale price" and "Cash Receipts Budgets" answers to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.) Sales Budget 1st Quarter 2nd Quarter…Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2027 sales forecast is as follows. Quarter HD-240 1 4,000 2 5,600 3 6,400 4 8,000 The January 1, 2027, inventory of HD-240 is 1,600 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2028 are expected to be 25% higher than sales in the same quarter in 2027. Prepare quarterly production budgets for each quarter and in total for 2027. CRANE COMPANY Production Budget Product HD-240 1 2 Quarter
- In the coming year, Urayse, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $11.25 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows Budgeted sales units 1st Quarter: 25,000 2nd Quarter: 40,000 Prepare Urayse, Inc.'s, cash receipts budget for the coming year. 3rd Quarter:50,000 4th Quarter: 80,000In the coming year, Sheridan, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $16.00 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30% in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales units 27,000 40,000 60,000 73,000 Prepare Sheridan, Inc.'s cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Round "Budgeted sale price" and "Cash Receipts Budgets" answers to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.) Sales Budget 1st Quarter 2nd Quarter…In the coming year, Concord, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive- motion injuries. The brace will be sold for $13.00 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30% in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales units 29,000 41,000 57,000 77,000 Prepare Concord, Inc's cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Round "Budgeted sale price" and "Cash Receipts Budgets" answers to 2 decimal places, eg. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)