A school Bag Manufacturer produced 5,200 units of school bags per year. The selling price and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A school Bag Manufacturer produced 5,200 units of school bags per year. The selling price and cost structure per bag are as follows: Raw Materials Wages Expenses $ (per unit) 100 60 40 200 50 250 Total cost Profit Selling price Other information: Raw materials in Stock for 3 weeks. (ii) Processing period 2 weeks. (iii) Finished goods are in stock for 1 week. (iv) Credit period allowed to customer 2 weeks. (v) Credit period allowed by supplier 2 weeks. (vi) Wages and expenses are paid a gap of 1 week. (vii) Balance of Cash to be kept as $ 10,000. Prepare a statement showing working capital requirement. A school Bag Manufacturer produced 5,200 units of school bags per year. The selling price and cost structure per bag are as follows: Raw Materials Wages Expenses $ (per unit) 100 60 40 200 50 250 Total cost Profit Selling price Other information: Raw materials in Stock for 3 weeks. (ii) Processing period 2 weeks. (iii) Finished goods are in stock for 1 week. (iv) Credit period allowed to customer 2 weeks. (v) Credit period allowed by supplier 2 weeks. (vi) Wages and expenses are paid a gap of 1 week. (vii) Balance of Cash to be kept as $ 10,000. Prepare a statement showing working capital requirement.
Expert Answer:
Answer rating: 100% (QA)
To calculate the working capital requirement we need to determin... View the full answer
Related Book For
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
On July 2, Clippers Corp. ships merchandise costing $460,000 on consignment to Dolphin Stores. Clippers pay the freight of $10,000. Upon sale, Dolphin Stores will receive a 12% commission and a 6%...
-
Table 2-5 Estonia Finland One Cell Phone 40 hours 16 hours Lumber (per board foot) 8 hours 4 hours Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of...
-
Knowing that the shaded area is equal to 6000 mm2 and that its moment of inertia with respect to AA² is 18 Ã 106 mm4, determine its moment of inertia with respect to BB² for d1 = 50...
-
The HR manager must identify those external influences that will affect the organisation and the management of its human resources. Some of the major influences existing outside of the organisation...
-
Presented below are selected financial data from the 2015 annual report of The Boeing Company: Required Using the ratio definitions from Exhibit 4.6, calculate the financial ratios for The Boeing...
-
Sherman Company manufactures and sells small pumps made to customer specifications. It has two service departments and two production departments. Data on current year operations follow: Management...
-
A company owns a commercial property near a UBC and received an offer to buy it for $400,000 The manager of the company is considering using the property for two possible alternatives, a coffee shop...
-
Hello tutors, can I please get you assistance with the following ? Thank You so much Consider the following distributions for a random variable X. In each case, match the distribution with...
-
You plan to purchase a $150,000 house using a 15-year mortgage obtained from your local credit union. The mortgage rate offered to you is 7.5 percent. You will make a down payment of 20 percent of...
-
You are looking at to invest $100,000 for the 12 years. You have already identified two possible mutual funds: Fund A- .09% front-end load and an expected 13% return Fund B- .03% front-end load and...
-
Higgledy Piggledy Ltd. has expected EBIT = $2,750.00, debt with a face and market value of $10,500.00 paying 6% annual coupon, and an unlevered cost of capital of 9%. If the tax rate is 40%, what is...
-
An electron with a speed of 6.72 108 cm/s in the positive direction of an x axis enters an electric field of magnitude 2.81 103 N/C, traveling along a field line in the direction that retards its...
-
You win the lottery and are faced with two choices (both pre-tax): you can either receive (i) 100 million in cash today, or (ii) receive an annuity of 10 million per year for the next 20 years...
-
5. Find a function f(x) with derivative f'(x)=cc
-
Consider the reaction of acetic acid in water CH 3 CO 2 H(aq) + H 2 O(l) CH3CO 22 (aq) + H 3 O + (aq) where Ka 5 1.8 3 1025. a. Which two bases are competing for the proton? b. Which is the stronger...
-
UltraLift Corp. manufactures chain hoists. The raw materials inventories on hand on October 1 were as follows: Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 lb,...
-
The factory payroll for the week is $200,000, consisting of $140,000 earned by 100 direct laborers and $60,000 earned by 30 indirect laborers. The total of factory bonuses to be received at year-end...
-
Spokane Production Co. obtained the following information from its records for July: Required: 1. Prepare, in summary form, the journal entries that would have been made during the month to record...
-
The Forrester Company's income statement and comparative balance sheets as of December 31 of 2019 and 2018 are shown below: Cash dividends of \(\$ 31,000\) were declared and paid during 2019. Plant...
-
The Geary Company's income statement and comparative balance sheets as of December 31 of 2019 and 2018 follow: During the year, the following transactions occurred: 1. Sold equipment for \(\$ 9,000\)...
-
Meagan Enterprises reported the following information for the past year of operations: For each transaction, indicate whether the ratio will (I) increase, (D) decrease, or (N) have no effect....
Study smarter with the SolutionInn App