Your department is planning a 10 percent increase in sales for the entire three- month period (February-April). Sales for the period last year were $19,000. Fifty percent of the total planned sales are projected to occur in March, and 25 percent of sales are planned to occur in each of the other two months. Planned stock-sales ratio for each month is 2.0. Total planned reductions for the period are 5 percent of planned sales. Reductions are projected to occur for each month as follows: February (10 percent), March (40 percent), and April (50 percent). An ending inventory of $5,000 is planned for the period. PLANNED REDUCTIONS FOR FEBRUARY ARE: O $150.00 $261.25 $104.50 O $16.50 Question 39 ( Effectively used, open-to-buy allows buyers to accomplish all the following EXCEPT Limit overbuying Reduce markdowns Improve stock turnover Increase markdowns

Your department is planning a 10 percent increase in sales for the entire three- month period (February-April). Sales for the period last year were $19,000. Fifty percent of the total planned sales are projected to occur in March, and 25 percent of sales are planned to occur in each of the other two months. Planned stock-sales ratio for each month is 2.0. Total planned reductions for the period are 5 percent of planned sales. Reductions are projected to occur for each month as follows: February (10 percent), March (40 percent), and April (50 percent). An ending inventory of $5,000 is planned for the period. PLANNED REDUCTIONS FOR FEBRUARY ARE: O $150.00 $261.25 $104.50 O $16.50 Question 39 ( Effectively used, open-to-buy allows buyers to accomplish all the following EXCEPT Limit overbuying Reduce markdowns Improve stock turnover Increase markdowns

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Here are next year's projections for a firm you are valuing: Sales are expected to be $100 million. Gross margin is forecasted to be 50%. COGS and SG&A together are $90 million, of which depreciation is $10 million. Industrial customers (60% of sales) will take 100 days to pay their bills. Retail chains (40% of sales) make cash sales. The firm expects to turn over its inventory every 60 days. The firm will pay its bills in 20 days. Using the information provided above, What is next year’s inventory projected to be? [ Select ] What should be the average collection period (days) and next year’s accounts receivable? [ Select ]
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,540 May 3,865 June 4,540 July 4,155 August 3,920 Croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. Direct material costs $2.80 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. Raw materials on hand at March 31 totaled 3,735 pounds. Required:1. Determine budgeted production for April, May, and June. (Do not round your intermediate calculations and round your final answer to the nearest whole number.) 2. Determine the budgeted cost of materials purchased for April, May, and June. (Use rounded Budgeted Production units in intermediate calculations. Round your answers to 2 decimal places.)
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,450 May 3,940 June 4,640 July 4,180 August 3,980 Croy’s finished goods inventory policy is to have 50 percent of the next month’s sales on hand at the end of each month. Direct materials costs $3.00 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,695 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of materials purchased for April and May.
Cahuilla Corporation predicts the following sales in units for the coming four months: Sales in units Each month's ending finished goods inventory should be 40% of the next month's sales. March 31 finished goods inventory is 144 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 210 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is: Multiple Choice 350 units. April May June July 360 400 420 360 240 units.
Blossom Company estimates that 2020 sales will be $40000 in quarter 1, $48000 in quarter 2, and $58000 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished goods inventory equal to 12% of the next quarter’s expected cost of goods sold. Prepare a merchandise purchases budget by quarter for the first 6 months of 2020.
Alpha CD plans to sell 10,000 units of a particular product during July, and expects sales to increase at the rate of 10% per month during the remainder of the year. The June 30 and September 30 ending inventories are anticipated to be 1,100 units and 950 units, respectively. On the basis of this information, how many units should Alpha CD purchase for the quarter ended September 30?
The Thakor Corporation's purchases from suppliers in a quarter are equal to 65 percent of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $95 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 04 Sales $2,370 $2,670 $2,370 $2,070 Sales for the first quarter of the following year are projected at $2,700. Calculate the company's cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q1 Q2 Q3 Q4
Lewellen Products has projected the following sales for the coming year: 01 02 03 04 Sales $940 $1,020 $980 $1,080 Sales in the year following this one are projected to be 20 percent greater in each quarter a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. What is the payables period in this case? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate payments to suppliers assuming a 60-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. b. Payment of accounts Payment of accounts Payment of accounts 01 02 Q3 Q4
A company's sales for the nine months to 30 September are $2.5m. The sales forecast for the next three months is $500,000 in total. The company's budgeted sales for the year are $3.4m The company's CEO has a meeting with the sales manager to discuss plans to close the gap between the forecast and the original budgeted sales for the next quarter. What is this process an example of? Feedback control An activity-based budget A rolling budget Feed-forward control
Croy Inc. has the following projected sales for the next five months: Month Salen in Unita 3,850 3,875 4, 260 4,135 3,590 April May June July August Croy's finished goods inventory policy is to have 60 percent of the next month's sales on hand at the end of each month, Direct materials cost $3.10 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,865 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of materials purchased for April and May.
Shown below is the sales forecast for Tulip's industry. For the first four Quarter of the coming year. Quarter 1 sales (in units) are 40 000 increases in sequent by the multiple of 20 000 for the rest of quarters except for the last quarter sales are 50 000 units. • Tulip's single product sells for 8$.• Sales collected in the following pattern, 75% in the quarter of sales, and the remaining 25% in the following quarter. The financial statement position (FSP) showed $65 000 balance of account receivables. All of which will be collected in the first quarter.• The company desires an ending finished goods inventory at the end each quarter equal to 30% of the budget sales unit sales for the next quarter. It had 12 000 units in hand on December, 31. Beginning balance of finished goods is 10 000 units• Five pounds of raw materials are required to complete one unit of product. Tulip Company require ending raw materials inventory at the end of each quarter equal to 10% of following quarter's…
Suppose that the Sales in December 2019 were 86,536. The sales are expected to grow by 9% in January 2020, by 14% in February 2020, and by 15% in March 2020. After that, the sales are expected to grow by 10%. The company's cash collection is as follows: 60% is collected in the same month and the remainder in the next month. What is the cash collection for June, 2020?