91,550 feet? feetJune 30September 30e. Gilden costs $0.60 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paidfor in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $49,290.Required:1. Calculate the estimated sales, by month and in total, for the third quarter.2. Calculate the expected cash collections, by month and in total, for the third quarter.3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter.5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter.6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.Complete this question by entering your answers in the tabs below.Req 1Req 2Req 3Reg 4 and 5Req 6Calculate the estimated sales, by month and in total, for the third quarter.JulyAugustSeptemberQuarterBudgeted salesReg 1Req 2 > Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled thefollowing information to assist in the budget preparation:a. The Marketing Department has estimated sales as follows for the remainder of the year (in units):JulyAugustSeptember38,50087,00056,000October28,50015,00015,500NovemberDecemberThe selling price of the beach umbrellas is $14 per unit.b. All sales are on account. Based on past experience, sales are collected in the following pattern:30% in the month of sale65% in the month following sale5% uncollectibleSales for June totaled $504,000.C. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at theend of June.d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires thatthe ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at thebeginning and end of the quarter will be:

Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.

Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

100%

91,550 feet
? feet
June 30
September 30
e. Gilden costs $0.60 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid
for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $49,290.
Required:
1. Calculate the estimated sales, by month and in total, for the third quarter.
2. Calculate the expected cash collections, by month and in total, for the third quarter.
3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.
4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter.
5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter.
6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2
Req 3
Reg 4 and 5
Req 6
Calculate the estimated sales, by month and in total, for the third quarter.
July
August
September
Quarter
Budgeted sales
Reg 1
Req 2 >

Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the
following information to assist in the budget preparation:
a. The Marketing Department has estimated sales as follows for the remainder of the year (in units):
July
August
September
38,500
87,000
56,000
October
28,500
15,000
15,500
November
December
The selling price of the beach umbrellas is $14 per unit.
b. All sales are on account. Based on past experience, sales are collected in the following pattern:
30% in the month of sale
65% in the month following sale
5% uncollectible
Sales for June totaled $504,000.
C. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the
end of June.
d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that
the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the
beginning and end of the quarter will be:

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