Grace manufactures and sells miniature digital cameras for $200 each. 1,300 units were sold in May, andmanagement forecasts 5% growth in unit sales each month.(a) Determine the number of units of camera sales for the month of June.(b) Determine the dollar amount of camera sales for the month of June.(a) Number of camera sales(b) Amount of camera salesunits

Revenue is shown in the income statement. Revenue is the product of number of units sold and price…

Answered: Grace manufactures and sells miniature…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...

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Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
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. Given the sales shown, how much cash will be collected in January and February?
Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
Grace manufactures and sells miniature digital cameras for $260 each. 1,600 units were sold in May, and management forecasts 3% growth in unit sales each month.(a) Determine the number of units of camera sales for the month of June.(b) Determine the dollar amount of camera sales for the month of June.
Grace manufactures and sells miniature digital cameras for $250 each. 1,000 units were sold in May, and management forecasts 4% growth in unit sales each month. Determine (a) the number of units of camera sales and (b) the dollar amount of camera sales for the month of June.
Nickel City Arcade is forecasting its sales for its peak summer season. One important part of the total sales amount is the daily admissions fees. Nickel City has a maximum capacity of 600 people per day. Each person pays an admission fee of $5. Here are the expected usage rates during the months of June, July, and August. June 30 days 50% July 31 days 70% August 31 days 40% What is the total forecasted amount of admissions fees for the months June through August? $161,100 $158,900 $132,700 $147,300
D’Lightful Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months of the year are as follows: Month Sales October 10,000 November 14,000 December 13,000 Finished goods inventoryat the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales. The company expects to sell the lamps for $25 each. January 2018 sales is projectedat 16,000 lamps. What is the expected revenue for the three months from October to December? Question 18 options: 1) $250,000 2) $925,000 3) $325,000 4) $343,750
Worton Distributing expects its September sales to be 25% higher than its August sales of $154,000. Purchases were $104,000 in August and are expected to be $124,000 in September. All sales are on credit and are expected to be collected as follows: 30% in the month of the sale and 70% in the following month. Purchases are paid 25% in the month of purchase and 75% in the following month. The cash balance on September 1 is $14,000. The ending cash balance on September 30 is estimated to be:
Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March $ 12,000 June $ 14,000 April 16,000 July 17,000 May 10,000 August 18,000 Sales in January and February were $13, 500 and $13,000 respectively. Experience has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August. Ed's Waterbeds Cash Receipts Schedule January February March April May June July August Sales $ $ $ $ $ $ $ $ Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts $ $ $ $ $$b. Of the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of August? How much of this is expected to be collected later? Amount…
Steves’s Discount Appliances expects sales of $15,000, $18,000, and $25,000 during April, May, and June (big sale in June). To build business, Steve let’s all customers buy on credit, and all do so. In the past, 20% of Steve’s Discount Appliances sales have been collected during the month of sale 65% are collected the following month, and 15% the month after that. If this trend continues, what will be Steve’s total cash collections in the month of June?
A firm expects to achieve the following level of sales, to make the following purchases of raw materials, and to make the following payments for indirect expenses for the first 4 months of the year. All sales and purchases of raw materials are on credit. 70% of sales are paid for in the month after the sale, with the balance paid in the following month. 90% of purchases are paid for in the month after the purchase, with the balance paid in the following month. Indirect expenses are paid for in the month they are incurred. Sales in December totalled $75 and purchases of raw materials in December totalled $54. The opening cash balance at the beginning of January was $117. What is the budgeted closing balance of accounts receivable (rounded to the nearest dollar) at the end of April? Jan Feb Mar Apr Sales 72 70 76 80 Purchases of raw materials 51 53 60 55 Indirect expenses 15 18 16 16 a. $106 b. $105 c. $108 d. $103 Please solve correctly with all working and steps
Osborne Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: The data from the table are as follows: # of planters to be sold January: 3,400 February: 3,800 March: 3,300 April: 4,900 May: 4,600. Inventory at the start of the year was 850 planters. The desired inventory of planters at the end of each month in the upcoming year should be equal to 25% of the following month’s budgeted sales. Each planter requires three pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month’s production on hand at the end of each month. The polypropylene costs $0.20 per pound. Requirements Prepare a production budget for each month in the first quarter of the year,…

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