1. ABM Company forecasts sales in units for January to May as follows:January 2,500, February 2,700, March 3,500, April 3,700 and May 3,5002. ABM Company would like to maintain 100 units in its ending inventory at the end of each month.3. Beginning inventory at the start of January is 50 units.4. How many units should ABM Company produce in order to fulfill the expected sales of the company?MONTHMARCHAPRILMAYTOTALJANFEBProjected SalesTarget level of endinginventoriesTotalLess: beginning inventoriesRequired production5. assume selling price is PHP200/unit.6. Sales for each month are expected to be collected as follows:• Month of sales: 20% A month after sales: 50% - 2 months after sales: 30%Note · On January Abm Company collected from previous month sales amounted to P100,000

Production budget is a schedule of number of units that should be produced to meet the targets of…

1. ABM Company forecasts sales in units for January to May as follows: January 2,500, February 2,700, March 3,500, April 3,700 and May 3,500 2. ABM Company would like to maintain 100 units in its ending inventory at the end of each month. 3. Beginning inventory at the start of January is 50 units. 4. How many units should ABM Company produce in order to fulfill the expected sales of the company? MONTH APRIL MARCH MAY TOTAL JAN FEB Projected Sales Target level of ending inventories Total Less: beginning inventories Required production

1. ABM Company forecasts sales in units for January to May as follows: January 2,500, February 2,700, March 3,500, April 3,700 and May 3,500 2. ABM Company would like to maintain 100 units in its ending inventory at the end of each month. 3. Beginning inventory at the start of January is 50 units. 4. How many units should ABM Company produce in order to fulfill the expected sales of the company? MONTH APRIL MARCH MAY TOTAL JAN FEB Projected Sales Target level of ending inventories Total Less: beginning inventories Required production

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 4MC

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Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
1. ABM Company forecasts sales in units for January to May as follows: January 2,500, February 2,700, March 3,500, April 3,700 and May 3,500 2. ABM Company would like to maintain 100 units in its ending inventory at the end of each month. 3. Beginning inventory at the start of January is 50 units. 4. How many units should ABM Company produce in order to fulfill the expected sales of the company? MONTH FEB MARCH APRIL MAY TOTAL JAN Projected Sales Target level of ending inventories Total Less: beginning inventories Required production 5. assume selling price is PHP200/unit. 6. Sales for each month are expected to be collected as follows: • Month of sales : 20% A month after sales: 50% - 2 months after sales: 30% Note · On January Abm Company collected from previous month sales amounted to P100,000 MONTH FEB MARCH APRIL JAN MAY TOTAL Units Sales in Pesos Collection from current months sales Collection from previous months sales Collection from two months prior sales Total Collections…
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