Sales for Gonzalez Pro's Sports Equipment are expected to be 64,000 units for the coming month. The company likes to maintain 25percent of unit sales for each month in ending inventory. Beginning inventory is 20,500 units.How many units should the firm produce for the coming month?Units to be produced

The estimated number of units that need to be maintained as ending inventory = (Expected number of…

Answered: Sales for Gonzalez Pro's Sports…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Angelo Limited is preparing its budget for the next year. It produces and sells a single product. The expected sales for the first 4 months of next year are: Month January February March April Production units 10,500 12,700 14,200 16,100 The product requires 2.5 kg of Material A1 per unit. It is the company’s policy to hold in inventory at the end of a month 20% of the material requirement for the following month. Calculate the material purchases for the month of February based on the information provided. Production cost is: The total overhead cost incurred in producing products. The total of the direct costs and the production overhead cost incurred. The total of the direct costs incurred in production. The cost of direct material, direct labour and indirect labour incurred in production.
Offenbach & Son has just made its sales forecasts and its marketing department estimates that the company will sell 220,200 units during the coming year. In the past, management has maintained inventories of finished goods at approximately one month's sales. The inventory at the start of the budget period is 14,800 units. Sales occur evenly throughout the year. Required: Estimate the production level required for the coming year to meet these objectives. (Do not round intermediate calculations.) Required production in units
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Sohar Company. estimates its sales at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for OMR 25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at Select one: Oa. None of the answers are correct b. 216,000. O c. 207,000. O d. 274,500. O e. 220,500.
Vertical Ladder Company (VLC) forecasts its sales for January through April will be $60,000, $70,000, $100,000, and $90,000, respectively. All sales are made on credit, and it is expected that 20 percent of sales will be collected in the month of the sale and the remainder will be collected the month following the sale. Customers who pay in the month of the sale will take the 4 percent cash discount VLC offers for paying early. VLC normally purchases and pays for raw materials, which cost 60 percent of sales, one month prior to selling the finished products. Employees' wages represent 30 percent of sales and rent is $4,000 per month. At the beginning of February, VLC expects to have $6,000 in cash, which is $2,000 greater than its target cash balance. Using the information provided, construct VLC's cash budget for February and March. Round your answers to the nearest dollar. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". February March…
Tillman Cycles manufactures chainless bicycles. On March 31, Tillman Cycles had 210 bikes in inventory. The company has a policy that the ending inventory in any month must be 20% of the following month's expected sales. Tillman Cycles expects to sell the following number of bikes in each of next four months: E (Click the icon to view the data) Prepare a production budget for the second quarter, with a column for each month and for the quarter. ..... Tillman Cycles Production Budget For the Months of April through June Data Table April May June Quarter Unit sales 1050 1150 1390 3590 Plus: Desired ending inventory April. 1,050 bikes Total needed May 1,150 bikes Less: Beginning inventory June. 1,390 bikes Units to produce July . 1,200 bikes Print Done
Vertical Ladder Company (VLC) forecasts its sales for January through April will be $40,000, $60,000, $100,000, and $90,000, respectively. All sales are made on credit, and it is expected that 40 percent of sales will be collected in the month of the sale and the remainder will be collected the month following the sale. Customers who pay in the month of the sale will take the 2 percent cash discount VLC offers for paying early. VLC normally purchases and pays for raw materials, which cost 45 percent of sales, one month prior to selling the finished products. Employees' wages represent 20 percent of sales and rent is $6,000 per month. At the beginning of February, VLC expects to have $4,000 in cash, which is $1,000 greater than its target cash balance. Using the information provided, construct VLC's cash budget for February and March. Round your answers to the nearest dollar. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". February March…
which one is correct please confirm QUESTION 2 The most appropriate weights to use in calculating a firm's cost of capital are the proportions of the components in the firm's ____ capital structure. a. historical average b. industry average c. current d. long-range target
The Company has two products: A and B. March sales forecast projects 15,000 units of A and 10,000 units of B are going to be sold at prices of $15 and $18, respectively. The desired ending inventory of A is 12% higher than the beginning inventory, which was 2000 units. How much are total March sales for A anticipated to be?
Assume that sales and expenses forecasts for months April, May, June, and July are as follows. month, 60% are paid in the next month, and 20% are paid in the second month after. All expenses in a month are paid in the same month. There is a $20,000,000 minimum required cash balance at the end of each month, and any shortage from this minimum requirement will be covered by obtaining a loan. Any excess over $20,000,000 will be used to reduce or pay off cumulative loan. Initial cash balance in June is $6,000,000 and there is no cumulative loan at this time. Monthly prorated tax rate is 2%, and monthly interest rate on cumulative loan is 1%. Requirements: Prepare cash budget proforma for months June and July and interpret the result in detail.
Sunland Company estimates its sales at 180000 units in the first quarter and that sales will increase by 17000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at O $5273500. O $3026500. O $4387000. O $6057389.
answer?

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