Question

(2points) Brad Company has 6,000 gallons of a given material on hand at the beginning of May. During May, the company plans to make 10,000 units of a final product. For June, the planned production is 15,000 units of a final product (finished goods). 7. I unit of the final product requires 3 gallons of the material. The company's policy is that it will maintain an ending material quantity to be same as 20% of the following month's production needs (quantity to be used in production). Based on the information above, how many gallons of the material should be purchased in May? gallons Use the following information to solve the following two questions. (2points) A company has budgeted sale units are as follows: 8. September July August $30,000 $20,000 $24,000 One-half of sales are cash sales and one-half of sales are credit sales. The company collects cash from credit sales over two months (30 % in the month of sale, and 70 % in the month following sale). During September, the company's expected cash collections from sales are how much? $ (2points) Use the same information given in the above question. At the end of September, the company's Accounts receivable will have a balance of what amount? $ 9. (2points) Parliman Corporation is preparing its cash budget for August. 10. a. The budgeted beginning cash balance is $12,000. b. Budgeted cash receipts from sales total $159,000. c. Budgeted cash disbursements for inventory purchases total 120,000 d. Operating expenses are $30,000. Of this amount depreciation is $5,000. e. Equipment will be purchased for $20,000 cash f. The ending cash balance should be $20,000 at a minimum. Determine the minimum amount of borrowing needed. S dbo ng

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

1 Answer 2 Part 7) 3 Gallons to be purchased in May Required for Production +desired ending inventory - opening inventory 4(10000*3)+(15000*3*20%) -6000 33000 gallons Thus the correct answer is 33000 Gallons 6 7 8 Part 8) 9 september cash collection from sales Cash sales of september (credit sales of september 30 % ) (credit sales of august*70% 10 (30000*50 %)+{30000*50%*30 %)+{24000*50%*70%) 11 27900 12 Thus the correct answer is $ 27900 13 14 Part 9 15 Ending account receivable balance September sales *70% (30000*50% )*70 % 16 17 10500 18 19 Thus the correct answer is $ 10500 20 21 Part 10) Ending balance beginning balance cash reciept from sales - cash disbursement for inventory cash paid for operating 22 expenses - equipment purchased borrowings 23 20000 12000+159000-120000-(30000-5000) 20000 +borrowings 24 Borrowings 20000-6000 25 Borrwings = 14000 26 27 Thus the correct answer is $ 14000 un LDN