How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Scott Your Own Question
Scott, MIT Graduate
Category: Homework
Satisfied Customers: 3040
Experience:  MIT Graduate (Math, Programming, Science, and Music)
Type Your Homework Question Here...
Scott is online now
A new question is answered every 9 seconds

Business Finance

Customer Question

1. Sales for Ross Pro’s Sports Equipment are expected to be 4,800 units for the coming month. The company likes to maintain 10 percent of unit sales for each moth in ending inventory. Beginning inventory is 300 units. How many units should the firm produce for the coming month?

2. Digitex, Inc had sales of 6,000 units in March. A 50 percent increase is expected in April. The company will maintain 5 percent of expected units sales for April in ending inventory. Beginning inventory for April was 200 units. How many units should the company produce in April?

3. Convex Mechanical Supplies produces a product with the following costs as of July 1, 2004:


Beginning inventory at these costs on July 1 was 5,000 units. From July 1 to December 1, Convex produced 15,000 units. These units had a material cost of $10 per unit. The cost for labor and overhead were the same. Convex uses FIFO inventory accounting.
     Assuming that Convex sold 17,000 units during the last six months of the year at $20 each, what would gross profit be? What is the value of the ending inventory?

4. Assume in problem 3 that Convex used LIFO accounting instead of FIFO. What would gross profit be? What is the value of ending inventory?

5.   J. Lo’s Clothiers has a forecast credit sales for the fourth quarter of the year as:

September (actual) ...............$70,000
                    Fourth Quarter       

Experience has shown that 30 percent of sales are collected in the month of sale, 60 percent in the following month, and 10 percent are never collected.
Prepare a schedule of cash receipts for J. Lo’s Clothiers covering the fourth quarter (October through December).

6. Pirate Video Company has made the following sales projections for the next six months. All sales are credit sales.

March          $24,000            June        $28,000
April              30,000            July            35,000
May               18,000            August        38,000

Sales in January and February were $27,000 and $26,000, respectively.

Experience has shown in the month of sales, 10 percent are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected 2 months after the sale.

Prepare a monthly cash receipts schedule for the firm for March through August.

Of the sales expected to be made during the six months from March through August, how much will still be uncollected at the end of August? How much of this is expected to be collected later?   

7. Graham Potato Company has projected sales of $6,000 in September, $10,000 in October, $16,000 in November, and $12,000 in December. Of the company’s sales, 20 percent are paid for by cash and 80 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December.

Also, assume Graham’s cash payments for November and December are $13,000 and $6,000, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance.

Prepare a cash budget with borrowing needed or repayments for November and December. (You will need to prepare a cash receipts schedule fist)

Submitted: 11 years ago.
Category: Homework
Expert:  DrTutor replied 11 years ago.

Hi, I have finished the answers with tables. I tried the preview to see but the tables are not showing up correctly. Please leave your email here so I can contact you. Thanks.

Customer: replied 11 years ago.
Reply to MyTutor's Post:[email protected]