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Question - The Company expects to sell 50% of its merchandise for cash and 50% for sales on account. Of the sales on account, 30% are expected to be collected in the month of the sale and the remainder in the following month.
August
$250,000
September
200,000
October
275,000
Do a schedule indicating cash collections from cash and accounts receivable for the three months.
Based on the following production and sales estimates for May, prepare the sales and production budgets:
Estimated beginning inventory (units), May 1
18,000
Desired ending inventory (units), May 31
21,600
Expected sales volume (units):
Area W
6,000
Area X
7,000
Area Y
8,000
$ Unit sales price
$20
Rough Riders Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in 50-jean batch sizes. The cutting time is 6 minutes and the sewing time is 15 minutes per jean. It takes 5 minutes to move a batch of jeans from cutting to sewing.
(a) Compute the value-added, non-value-added, and total lead time of this process.
(b) Compute the value-added ratio. Round to one decimal place.
a corporation with both preferred stock and common stock outstanding has a substantial credit balance in its retained
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