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Q7- Downstairs Company has the following sales budget for the last six months of 2010: July August September October $100,000 80,000 110,000 80,000 100,000 94,000 November December

Q7- Downstairs Company has the following sales budget for the last six months of 2010: July August September October $100,000 80,000 110,000 80,000 100,000 94,000 November December

FINANCIAL ACCOUNTING
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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Q7
Contribution margin ratio 60% 70% Required: 1. Prepare Income statement for the company. 2. Calculate break-even point in dollars. Q5- Amber Manufacturing provided the following information for last month: Sales Variable costs Fixed costs $20,000 6,000 9,000 Operating income $5,000 If sales double next month, what is the projected operating income? Q6- Benjamin Company has the following data: Budgeted Sales $108,000 132,000 144,000 120,000 Month January February March April Cost of goods sold average 60% of sales. The inventory at December 31 was $19,440. Desired ending inventory levels are 20% of next month's sales at cost. What is the desired ending inventory value at February 28? Q7- Downstairs Company has the following sales budget for the last six months of 2010: July August September October $100,000 80,000 110,000 80,000 100,000 94,000 November December
Transcribed Image Text:Contribution margin ratio 60% 70% Required: 1. Prepare Income statement for the company. 2. Calculate break-even point in dollars. Q5- Amber Manufacturing provided the following information for last month: Sales Variable costs Fixed costs $20,000 6,000 9,000 Operating income $5,000 If sales double next month, what is the projected operating income? Q6- Benjamin Company has the following data: Budgeted Sales $108,000 132,000 144,000 120,000 Month January February March April Cost of goods sold average 60% of sales. The inventory at December 31 was $19,440. Desired ending inventory levels are 20% of next month's sales at cost. What is the desired ending inventory value at February 28? Q7- Downstairs Company has the following sales budget for the last six months of 2010: July August September October $100,000 80,000 110,000 80,000 100,000 94,000 November December
Historically, the cash collection of sales has been as follows: 65% of sales collected in month of sale 25% of sales collected in month following sale 8% of sales collected in second month following sale 2% of sales uncollectible What are the expected cash collections of sales in October? Q8- Sebring Company has the following data: Month Budgeted Sales $40,000 44,000 50,000 52,000 48,000 April May June July August The cost of goods sold percentage is 70% of sales and the desired ending inventory level is 25% of next month's sales at cost. beginning inventory on May 1. was the
Transcribed Image Text:Historically, the cash collection of sales has been as follows: 65% of sales collected in month of sale 25% of sales collected in month following sale 8% of sales collected in second month following sale 2% of sales uncollectible What are the expected cash collections of sales in October? Q8- Sebring Company has the following data: Month Budgeted Sales $40,000 44,000 50,000 52,000 48,000 April May June July August The cost of goods sold percentage is 70% of sales and the desired ending inventory level is 25% of next month's sales at cost. beginning inventory on May 1. was the
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