Question 6. Juicy Ltd produces and sells Fruit Juices. The company provides the following estimated sales for the next six months: Month January February March April May June Unit Sales 100,000 110,000 120,000 110,000 130,000 120,000 The company's policy is to keep ending inventory of finished goods that is equal to 20% of the unit sales for the next month. Three kilograms of direct materials are required for each bottle of finished goods produced. Each kilogram of direct materials costs $6. Ending inventory levels for materials are equal to 20% of the production needs for the next month. Sales price per bottle is $60. Required (show your workings and round it to the nearest two decimal places): (a) Prepare sales budgets in units and dollars for February and March Prepare production budgets in units for February and March (b) (d) Prepare direct materials purchases budgets in kilograms and dollars for February ANSWER 6: PLACE YOUR ANSWER HERE (PRESS ENTER TO CREATE MORE SPACE) (5 marks) (5 marks) (5 marks)

Question 6. Juicy Ltd produces and sells Fruit Juices. The company provides the following estimated sales for the next six months: Month January February March April May June Unit Sales 100,000 110,000 120,000 110,000 130,000 120,000 The company's policy is to keep ending inventory of finished goods that is equal to 20% of the unit sales for the next month. Three kilograms of direct materials are required for each bottle of finished goods produced. Each kilogram of direct materials costs $6. Ending inventory levels for materials are equal to 20% of the production needs for the next month. Sales price per bottle is $60. Required (show your workings and round it to the nearest two decimal places): (a) Prepare sales budgets in units and dollars for February and March Prepare production budgets in units for February and March (b) (d) Prepare direct materials purchases budgets in kilograms and dollars for February ANSWER 6: PLACE YOUR ANSWER HERE (PRESS ENTER TO CREATE MORE SPACE) (5 marks) (5 marks) (5 marks)

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4: Preparing And Using Financial Statements

Section: Chapter Questions

Problem 2EP

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Al Anwar ceramics, Oman estimated the sales as follows June – 2,000 units July – 3,000 units August – 4,000 units The company mentioned that finished units equal to the half the sales of the next month will be in stock at the end of each month. Estimate the production for July 2021. a. 2,500 units b. None of these c. 3500 units d. 6,500 units
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3. Al Anwar ceramics, Oman estimated the sales as follows June – 2,000 units July - 3,000 units August – 4,000 units The company mentioned that finished units equal to the half the sales of the next month will be in stock at the end of each month. Estimate the production for July 2021. A. 3500 units B. 6,500 units c. 2,500 units D. None of these
4.[EXCEL] Operating cycle: Lilly’s Bakery distributes its products to more than 75 restaurants and delis. The company's average collection period is 27 days, and it keeps its inventory for an average of four days. What is Lilly's operating cycle?
B. Problem 1. Galaxy Lighting Company manufactures and sells lighting fixtures. Estimated sales for the next three months are: September P 350,000 October 500,000 November 400,000 Sales for August were $400,000. All sales are on account. Galaxy Lighting Company estimates that 60% of the accounts receivable are collected in the month of sale with the remaining 40% collected the following month. The units sell for $30 each. The cash balance for September 1 is $100,000. Generally, 60% of purchases are due and payable in the month of purchase with the remainder due the following month. Purchase cost per unit for materials is $18. The company maintains an end-of-the-month inventory of 1,000 units plus 10% of next month's unit sales. In addition to the information given, selling and administrative expenses paid in cash are $120,000 per month. Requirement: Prepare a monthly cash budget for September and October for Galaxy Lighting Company.
Question 6 Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the awner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below: Per Unit Tatal Monthly Data at 1,000 Vests Sales revenue $20 $20 000 Variable costs: Direct materials $8 $8 000 Direct labour Manufacturing overhead Contribution margin 2 2 000 13 3 000 13 000 $7 000 Foxed costs (rent, salaries, etc.) 4 000 Profit $3.000 The monthly information provided relates to the company's routine monthly aperations. A representative of the lacal university recently approached Rajan to ask about a one-time special order. The university will be hosting a state-wide saccer event and is willing to pay Rajan's Manufacturing $17 per shirt to make 200 custom vests for the event. Enough…
Question 1 The firm's average collection period ACP is 39 days. Purchases are 75% of sales and are made a month before the sales month. About 40% of a month's purchases is paid in the same month whereas the remainder is paid in the next month. Assume there are 30 days in a month Feb, 2022 Mar, 2022 Apr, 2022 Sales (RM) 52,000 55,000 54,000 (a)What is the total amount of sales collection in April 2022? (b) What is the total amount of purchase disbursement in March 2022? Question 2 A firm's expected sales in the coming year is RM3.6 million, and the firm's average receivables for the year is RM400,000. The firm is considering factoring the receivables. A factor offers a discount rate of 1.75%% for the firm's receivables. [Assume there are 360 days in a year] (a) How much can the firm obtain from factoring its receivables, and for how long? (b) What is the cost per year to the firm if it factors its receivables continually? (c) if a bank offers a loan for the…