Reference no: EM133031039
Question - A Company's projected sales, in units, for the first 4 months of 2015 are as follows:
Month Units
January 130,000
February 100,000
March 180,000
April 220,000
Each unit sells for $25 and costs $10 to acquire from a supplier. The company's cash collection pattern is as follows:
Month of sale: 60%
Month following sale: 25%
2nd month following sale: 12%
Uncollectible: 3%
The company's policy is to have enough goods on hand at the end of each month to meet 30% of the next month's sales.
Payments to suppliers are made as follows:
Month of purchase: 65%
Month following purchase: 35%
Other operating expenses for the month of March are expected to be $2,300,000, including $230,000 of amortization expense. All operating expenses are paid in the month they occur.
The company expects to have $35,000 cash on hand at the beginning of March and wants a minimum cash balance of $25,000. The company has access to a line of credit, and the controller is very interested to know if there will be requirements to draw down the line of credit at any time.
Required - Prepare a cash budget for the month of March addressing the controller's query regarding line of credit.
|
What was the depreciation for the first year
: Question - Equipment was acquired at the beginning of the year at a cost of $662,500. What was the depreciation for the first year
|
|
Determine the amount of the initial investment
: Annual cost savings were: $15000 for year 1; 13000 for year 2; and $11000 for year 3. Determine the amount of the initial investment
|
|
Summarise the historical development of computer systems
: Explore a range of hardware and related software and will learn to configure and install these. A range of networking technologies will be explored
|
|
Calculate the cash payback period
: The company estimates that annual cash inflows would increase by $208,000. Calculate the cash payback period
|
|
Prepare a cash budget for the month of march
: Other operating expenses for the month of March are expected to be $2,300,000, Prepare a cash budget for the month of March
|
|
What is the regular selling price
: At the end of the season, the unsold sets were advertised at a discount of of the new regular selling price.
|
|
How many usd do you have
: If you return with EUR 850, NZD 1,000, and GBP 750, and the exchange rates are unchanged, how many USD do you have
|
|
How is spotify taking advantage of mobile devices
: How is Spotify taking advantage of mobile devices? How is Spotify a Music as a Service business?
|
|
Explain organizational integrity
: 1) What each department of the organization can do to support the organization's published code of ethics
|