Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $17.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,700 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July August September October November December 8,120 11,090 8,560 9,110 6,580 5,260 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September.
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- Al Bahr Corporation, a wholesaler, provided the following informationMonthSalesJanuary64000February59000March42000April48000Customers pay 60% of their balances in the month of sale, 30% in the month following sale, and 10% in the second month following sale.Required: Determine the expected cash collection during March.Dante Manufacturing has a cash balance of P8,000 on August 1 of the current year.The company’s controller forecast the following cash receipts and cash disbursements for the upcoming two months of activity. Purchases SalesJanuary P 142,000 P 172,000February 148,000 166,000March 136,000 165,000April 154,000 178,000May 160,000 166,000Customers pay 60% of their balances in the month of sale, 30% in the month following sale, and 10% in the second month following sale. The company pays all invoices in the month following purchase and takes advantage of a 3% discount on all amounts due. Cash payments for operating expenses in May will be P119,500; Crispin’s cashbalance on May 1 was P127,800. Required: Determine the following:1. Expected cash collections during May.2. Expected cash disbursements during May.XYZ Co. was recently created with a beginning cash balance of P12,000. Expected operations for the first month follows: Cash sales P8,000 Sales on account P30,000 Cash collections P12,000 Cost of merchandise purchased P35,000 Cash paid for merchandise purchased P24,500 Cost of merchandise sold P26,600 Cash paid for display cases P9,600 Selling and administrative expenses P4,000 The display cases are being depreciated at P200 per month and it included in the selling and administrative expenses above. All other selling and administrative expenses are paid as incurred. The company maintains a cash balance of P10,000. The company can borrow from a local bank as needed in increments of P1,000. All borrowings are made at end of the month. Questions: 1. How much is the expected operating income (loss) for the 1st month? 2. How much is the expected cash borrowings at the end of month?
- Donald Company expects its purchases for June to be 130,000 and its purchases for July to be 124,000. Donald pays for 60% of its purchases in the month of purchase and receives a 2% discount. donald pays for the remaining 40% in the next month without discount. For purchases only, what are the expected cash payment in July?A. 124,912B. 127,392C. 124,000D. 124,400Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 11% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Month 1 2 3 4 Total sales $74,000 $90,000 $66,000 $44,000 Total cash receipts in Month 4 will be: Multiple Choice $36,960. $64,900. $50,160. $48,600.Tri-State Bank and Trust is considering giving Concord Company a loan. Before doing so, management decides that further discussions with Concord’s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $345,000. Discussions with the accountant reveal the following. 1. Concord sold goods costing $32,000 to Lilja Company, FOB shipping point, on December 28. The goods are not expected to arrive at Lilja until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Concord FOB destination on December 27 and were still in transit at year-end. 3. Concord received goods costing $23,000 on January 2. The goods were shipped FOB shipping point on December 26 by Brent Co. The goods were not included in the physical count. 4. Concord sold goods costing $34,000 to Jesse…
- Tri-State Bank and Trust is considering giving Concord Company a loan. Before doing so, management decides that further discussions with Concord’s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $345,000. Discussions with the accountant reveal the following. 1. Concord shipped goods costing $32,000 to Lilja Company, FOB shipping point, on December 28. The goods are not expected to arrive at Lilja until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Concord FOB destination on December 27 and were still in transit at year-end. 3. Concord received goods costing $23,000 on January 2. The goods were shipped FOB shipping point on December 26 by Brent Co. The goods were not included in the physical count. 4. Concord shipped goods costing $34,000 to…Mercado Ltd started its business with £21,000 in cash on 1 Jan 20X1, and immediately purchased 400 items of inventory at the price of £50 per item and put the remaining £1,000 in a bank account without any fees or interests. On 1 July 20X1, it sold all items at the price of £80 per item and received the payment in cash. The general price index during the year was as follows: 01-Jan 01-Jul 31-Dec General price index 100 120 150 What is the cash balance at the year end 31 Dec 20X1 under current purchasing power accounting? a. £33,000 b. £41,500 c. £40,000 d. £32,000 e. £1,0005. Cash collections for Wax On Candles found that 60% of sales were collected in the month of the sale, 30% was collected the month after the sale, and 10% was collected the second month after the sale. Nov. Dec. Jan. Feb. $25,000 $35,000 $20,000 $25,000 PLEASE NOTE: All dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). If no dollar amount is needed, please use "$0" - no quotation marks. Given the collection information and sales shown, complete the cash collections schedule below to determine how much cash will be collected in January and February Wax On Candles Cash Collections Schedule For January and February, 2019 January February November ? ? December ? ? January…
- Tri-State Bank and Trust is considering giving Cheyenne Corp. a loan. Before doing so, management decides that further discussions with Cheyenne’s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $303,500. Discussions with the accountant reveal the following. 1. Cheyenne shipped goods costing $32,400 to Sorci Company, FOB shipping point, on December 28. The goods are not expected to arrive at Sorci until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $91,000 that were shipped to Cheyenne FOB destination on December 27 and were still in transit at year-end. 3. Cheyenne received goods costing $29,800 on January 2. The goods were shipped FOB shipping point on December 26 by Solita Co. The goods were not included in the physical count. 4. Cheyenne shipped goods costing $44,000…Using Baulmol's inventory-theoretic approach to the demand for money, illustrate the stream of cash payments and the transactions demand for money and indicate the respective average money holdings of the following individuals from January to May: a. Pearl receives C8,000.00 monthly salary, doesn't want to deal with bank bureaucracy so cashes all her income at the beginning of the month. b. Alexis receives C10,000.00 and takes advantage of her bank's savings product by investing half of her salary at the beginning of the month and withdraws all by the 15th of the month.Block Foods, a retail grocery store, has agreed to purchase all of its merchandise from Square Wholesalers. In return. Block receives a special discount on purchases. Over recent months, Square noticed that purchases by Block had been falling off. At first, Square simply thought that business might be down for Block and was hopeful that their purchases would pick up. When business with Block did not return to a normal level, Square requested financial statements from Block. Squares records indicate that Block purchased 300,000 worth of merchandise during 20-1, the most recent year. Selected information taken from Block's financial statements is as follows: REQUIRED Compute net purchases made by Block during 20-1. Does it appear that Block violated the agreement?