What factor caused fewer purchases to be planned

Assignment Help Accounting Basics
Reference no: EM131539513

Question: H20 Company is a merchandiser of three different products. The company's March 31 inventories are water skis, 40,000 units; tow ropes, 90,000 units; and life jackets, 250,000 units. Management believes that excessive inventories have accumulated for all three products. As a result, a new policy dictates that ending inventory in any month should equal 10% of the expected unit sales for the following month. Expected sales in units for April, May, June, and July follow.

2205_May.png

Required: 1. Prepare a merchandise purchases budget (in units) for each product for each of the months of April, May, and June.
Analysis Component

2. The purchases budgets in part 1 should reflect fewer purchases of all three products in April compared to those in May and June. What factor caused fewer purchases to be planned? Suggest business conditions that would cause this factor to both occur and affect the company as it has.

Reference no: EM131539513

Questions Cloud

Talk about testosterone and how is it important : Talk about testosterone and how is it important. and mention couple supplements reviewing them or explain how to use, who needs it .
What do mean by research design : What do you analyses as the main reason behind the success of Mind tree - What do mean by Research design.
Discuss three major concerns of public budgeting : From the first e-Activity, discuss three major concerns of public budgeting and finance for a public administrator. Justify your response with examples.
The firm to collect its accounts receivable : How many days on average does it take the firm to collect its accounts receivable?
What factor caused fewer purchases to be planned : H20 Company is a merchandiser of three different products. The company's March 31 inventories are water skis, 40,000 units; tow ropes, 90,000 units.
Choose a science news article highlighting a current event : A discussion, in your own words and ideas, of how the article relates to the concepts studied in class this week .
Three-year project that will require an initial investment : Mitata Co. is considering a three-year project that will require an initial investment of $55,000.
Resource procurement and creating quality products : You have been asked to explain to employees that you supervise what a business plan is and why it is important to have a business plan that focuses on customer.
Concrete test instrument used in construction for evaluating : A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces is under consideration by construction firm.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd