Scare-2-B-U (S2BU) specializes in costumes for all occasions. The average price of each of its costumes is $340. For each occasion, S2BU receives a 10 percent deposit two months before the occasion, 50 percent the month before, and the remainder on the day the costume is delivered. Based on information at hand, managers at S2BU expect to make costumes for the following number of occasions during the coming months. April 45 May 30 June 20 July 35 August 45 September 105 Required: a. What are the expected revenues for S2BU for each month, April through September? Revenues are recorded in the month of the occasion. b. What are the expected cash receipts for each month, April through July?

Scare-2-B-U (S2BU) specializes in costumes for all occasions. The average price of each of its costumes is $340. For each occasion, S2BU receives a 10 percent deposit two months before the occasion, 50 percent the month before, and the remainder on the day the costume is delivered. Based on information at hand, managers at S2BU expect to make costumes for the following number of occasions during the coming months. April 45 May 30 June 20 July 35 August 45 September 105 Required: a. What are the expected revenues for S2BU for each month, April through September? Revenues are recorded in the month of the occasion. b. What are the expected cash receipts for each month, April through July?

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter27: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 1PA: Lean principles Bright Night, Inc., manufactures light bulbs. Its purchasing policy requires that...

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Scare-2-B-U (S2BU) specializes in costumes for all occasions. The average price of each of its costumes is $340. For each occasion, S2BU receives a 10 percent deposit two months before the occasion, 50 percent the month before, and the remainder on the day the costume is delivered. Based on information at hand, managers at S2BU expect to make costumes for the following number of occasions during the coming months. April 60 May 30 June 20 July 45 August 50 September 125 Required: a. What are the expected revenues for S2BU for each month, April through September? Revenues are recorded in the month of the occasion. b. What are the expected cash receipts for each month, April through July?
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 $20.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 17,000 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July 8,420 August 11,390 September 8,860 October 9,410 November 6,880 December 5,560 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September.
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 $16.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,600 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July 8,020 August 10,990 September 8,460 October 9,010 November 6,480 December 5,160 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September. DAWES DESIGNS Merchandise Purchases Budget For the Period Ended March 31 (in units) July August September Units to be purchased ?? ?? ?? Estimated cost $ ?? $ ?? $ ??
Anti-Corona, a distributor of facial mask, predicts that it will purchase 306,000 masks next year. Anti-Corona estimates that 25,500 masks will be required each month. A supplier quotes a price of $10 per facial mask. The supplier also offers a special discount option: If all 306,000 masks are purchased at the start of the year, a discount of 3% off the $10 price will be given. Anti-Corona can invest its cash at 12% per year. It costs Anti-Corona $300 to place each purchase order. (a)What is the opportunity cost of interest forgone from purchasing all 306,000 units at the start of the year instead of in 12 monthly purchases of 25,500 units per order? (b) Should Anti-Corona purchase 306,000 units at the start of the year or 25,500 units each month? Show your calculations with reasons 4(c) The company is a multinational company with many branches in different countries around the world. The 12% for return on cash is based on expected return of cash in US. The company is planning to…
A CARDBOARD BOX FACTORY pays its suppliers 40 days after making the purchase and receiving the goods. The average collection period is 45 days, i.e. its customers settle their debt with the company in that time; and the average inventory age is based on the inventory turnover which is 10 times a year. The company spends about $1.23 million in operating cycle investments. With this data we need to calculate: The operating cycle.The cash conversion cycle.The cash turnover.The minimum cash balance.You plan to make modifications to your policies so that you can decrease your PPC by 10 days, and decrease your EPI by 2 times (before converting it to days). Negotiations with your supplier have been unsuccessful and the payment term has been reduced by 10 days. With these data you have to calculate: Re-calculate the Operating Cycle, the SCC, RC and SMC introducing the proposed changes.Calculate the opportunity cost that the changes will cause, if the company's interest rate is 8%.
For January, February, and March 2021, Mr. Santos plans to sell Chemical A in the following schedule: 20 liters in January; 30 liters in February; and 30 liters in March. Consider the following assumptions: Assumptions: (sales received in cash; cost and expenses paid in cash) Price Per Liter (in Pesos) 10,000 Salaries Per Month (in Pesos) Cost Per Liter Salesman 30,000 Labor 25% of Price Assistant 20,000 Materials 25% of Price Total Salaries 50,000 Selling Expenses Per Month (Pesos) 50,000 Miscellaneous (Per Month) 10,000 Other Assumptions: All Sales are on cash basis. Production costs are paid in cash; labor is subcontracted. All purchases of raw materials are paid in cash. All finished goods are assumed to be sold. No ending inventory. No taxes considered. REQUIRED: a. FINANCIAL PLAN FOR JANUARY, FEBRUARY, AND MARCH b. Sales Forecast and Cost (Production) and…
Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be? Group of answer choices $210,000 $157,500 $202,500 $135,000
Thorne Estates Limited advertises and sells residential property on behalf of its customers. The company has been in business for only a short time and is preparing a cash budget for first four months of 2021. Expected sales of residential properties are as follows:2020 2021 2021 2021 2021Month Dec Jan Feb Mar AprUnits Sold 10 10 15 25 30 The average price of each property is £180,000 and Thorne Estates charges a fee of 3% of the value of each property sold. Thorne Estates receives a 1% in the month of sale and the remaining 2% in the month after sale.The company has nine employees who are paid on a monthly basis. The average salary per employee is £35,000 per year. If more than 20 properties are sold in a given month, each employee is paid in that month a bonus of £140 for each additional property sold.Variable expenses are incurred at the rate of 0.5% of the value of each property sold and these expenses are paid in the month of sale. Fixed overheads of £4,300 per month are paid in…
Crystal Company operates a customer loyalty programme. It grants programme members 10 loyalty points for every P1,000 amount of groceries. Programme members can redeem the points for further groceries. The points have no expiry period. Crystal has granted 20,000 points and management expects 80% of these points to be redeemed. Crystal estimates the fair value of each loyalty point to be P5 and the amount of deferred revenue initially is P100,000. At the end of the current year December 31, 2020 8,000 points have been redeemed in exchange for groceries. What amount of revenue from the loyalty programme should be recognized on December 31, 2020?
Kristin Company sells 300 units of its products for $20 each to Logan Inc. for cash. Kristin allows Logan to return any unused product within 30 days and receive a full refund. The cost of each product is $12. To determine the transaction price, Kristin decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability-weighted amount. Using the probability-weighted amount, Kristin estimates that (1) 10 products will be returned and (2) the returned products are expected to be resold at a profit. Indicate the amount of (a) net sales, (b) estimated liability for refunds, and (c) cost of goods sold that Kristen should report in its financial statements (assume that none of the products have been returned at the financial statement date).
Cromwell Company is a distributor that sells products to retail companies. The company sells one product for $200 per unit. Cromwell pays $150 to buy the product. Cromwell wishes to maintain an inventory at the end of each month equal to 30% of the next month’s projected sales. Purchases are paid in the month after purchase. Cromwell makes all sales on credit and collects 40% in the month of sale and 60% in the month after sale. Budgeted monthly sales for the second half of 2020 are as follows: July 10,000 units August 15,000 units September 18,000 units October 20,000 units November 16,000 units December 17,000 units what amount of merchandise inventory will be purchased in October.?
1. Banner House Inc. gives all its sales people a base salary of $39,000 per annum and a commission of 8% on all banners that they sell over $5,000. Calculate Courtney's salary last month if she sold $11,000 worth of banners. 2. Patrick, a sales representative at a jewelry store, receives a 2.00% commission for the first $10,000 in sales she makes, 4.00% for the next $30,000, and 6.00% thereafter. If she was paid $2,500.00 in commissions last month, calculate the amount of sales she made. 3. Jesse works for a clothing boutique store as a salesperson. She receives a monthly base salary of $900 and earns a commission on sales over $20,000. If she earned $8,000 last month and she made $110,000 in sales, calculate her commission rate.