show step by step solutions HomeFront, Inc. manufactures and distributes home maintenance products to retailers. Among its product offerings is EZ-Melt, ice-melting pellets used to clear ice from sidewalks and driveways. The products is packaged in bags with a selling price of $2 per bag. When planning the 2022-23 winter season, HomeFront used the following estimates and policies. Estimates: Sales Revenue September $60,000 October $80,000 November $95,000 December $75,000 January $50,000 February $25,000 Cash Sales and Collections % of sales that are cash sales 10% Credit sales collected in month of sale 30% Credit sales collected in month after sale 65% Credit sales that are uncollectible 5% Policy: EZ-Melt finished goods inventory on hand at the end of each month should equal 40% of the next month's sales 6. Compute the amount of expected cash collections from sales that will appear on the December cash collections budget. 7. Compute the expected amount of December sales that will still be uncollected after the end of January. 8. Compute the number of bags of EZ-Melt that should be produced in October.

show step by step solutions HomeFront, Inc. manufactures and distributes home maintenance products to retailers. Among its product offerings is EZ-Melt, ice-melting pellets used to clear ice from sidewalks and driveways. The products is packaged in bags with a selling price of $2 per bag. When planning the 2022-23 winter season, HomeFront used the following estimates and policies. Estimates: Sales Revenue September $60,000 October $80,000 November $95,000 December $75,000 January $50,000 February $25,000 Cash Sales and Collections % of sales that are cash sales 10% Credit sales collected in month of sale 30% Credit sales collected in month after sale 65% Credit sales that are uncollectible 5% Policy: EZ-Melt finished goods inventory on hand at the end of each month should equal 40% of the next month's sales 6. Compute the amount of expected cash collections from sales that will appear on the December cash collections budget. 7. Compute the expected amount of December sales that will still be uncollected after the end of January. 8. Compute the number of bags of EZ-Melt that should be produced in October.

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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