Dakota Fan, Inc., manufactures an inexpensive household fan that it sells to retailers for $ 20 per
Question:
Dakota Fan maintains a minimum cash balance of $ 15,000. Total payments in January 20x1 are budgeted at $ 195,000.
A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:
March 20x1 sales are expected to total 10,000 units.
Finished-goods inventories are maintained at 20 percent of the following months sales.
The December 31, 20x0, balance sheet revealed the following selected figures: cash, $ 22,500; accounts receivable, $ 108,000; and finished goods, $ 22,350.
Required:
1. Determine the number of units that Dakota Fan sold in December 20x0.
2. Compute the sales revenue for March 20x1.
3. Compute the total sales revenue to be reported on Dakota Fans budgeted income statement for the first quarter of 20x1. 4. Determine the accounts receivable balance to be reported on the March 31, 20x1, budgeted balance sheet.
5. Calculate the number of units in the December 31, 20x0, finished- goods inventory.
6. Calculate the number of units of finished goods to be manufactured in January 20x1.
7. Calculate the financing required in January, if any, to maintain the firms minimum cashbalance.
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt