Reference no: EM132514127
Comptel International is a manufacturer of the MX7500 cell phone. The following are its sales in units for the first quarter and its anticipated sales in units for the coming quarter. The distributor price is $300 per unit.
Units
September (actual) 90,000
October (actual) 90,000
November (actual) 100,000
December (actual) 98,000
January 100,000
February 90,000
March 110,000
April 125,000
May 150,000
June 165,000
July 155,000
August 140,000
- Comptel likes to keep 10% of the following month's sales in units in inventory. In addition, the most expensive part for the cell phone is the touchscreen. Because that part is essential and has stock-out issues, Comptel requires 25% of the following month's production requirements to be held in ending inventory. Each touchscreen costs $9.00. Inventory of touchscreens as at December 31 of the previous year was 24,750 units.
- Comptel's customers have historically paid their account balances as follows: 15% of total sales pay cash, 20% pay in the month of purchase, 16% pay in the month following purchase, 19% pay in the second month after purchase, and 28% pay in the third month after purchase. The 2% balance remains as bad debts. The customers that paid in cash receive a 1% discount.
Required:
Question a) Develop the production budget for the MX7500 for the first quarter (January to March) and the second quarter (April to June).
Question b) Develop the purchase budget for the touchscreen for the first quarter (January to March) by each month and total quarter and second quarter (April to June) by each month and total quarter.
Question c) Develop the cash receipts section of the cash budget for the first quarter (January to March) by each month and total quarter and second quarter (January to March) by each month and total quarter.
Question d) If the accounts receivable balance at December 31 is $42,620,100, what is the accounts receivable balance (not the balance net of the allowance for doubtful accounts) at the end of June?