Question: Hello Experts! This is a 5 part question. I fulled in the proper labels if that is any help to you. I have been getting

 Hello Experts! This is a 5 part question. I fulled inthe proper labels if that is any help to you. I havebeen getting my numbers miscalculated or mixed up. Any help would begreat. THIS IS ALL ONE QUESTION. Please make sure you can seeall 6 images. It is 5 sections of questions and the question.Thank You! Aztec Company sells its product for $180 per unit. Itsactual and budgeted sales follow April (actual) May (actual) June (budgeted) July

Hello Experts!

This is a 5 part question. I fulled in the proper labels if that is any help to you. I have been getting my numbers miscalculated or mixed up. Any help would be great. THIS IS ALL ONE QUESTION. Please make sure you can see all 6 images. It is 5 sections of questions and the question.

Thank You!

Aztec Company sells its product for $180 per unit. Its actual and budgeted sales follow April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) Units 9,500 2,000 7,000 8,000 3,900 Dollars $1,710,000 360,000 1,260,000 1,440,000 702,000 All sales are on credit. Recent experience shows that 30% of credit sales is collected in the month of the sale. 40% In the month after the sale, 28% in the second month after the sale, and 2% proves to be uncollectible. The product's purchase price IS $110 per unit. All purchases are payable within 12 days. Thus, 60% of purchases made in a month is pald in that month and the other 40% ls pald in the next month. The company has a policy to maintain an ending monthly inventory of 23% of the next month's unit sales plus a safety stock of 60 units. The April 30 and May 31 actual Inventory levels are consistent with thls pollcy. Sell ng and administrative expenses for the year are $1,260,000 and are paid evenly throughout the year In cash. The company's minimum cash balance at month-end Is $140,000. This minimum is malntalned, If necessary, by borrowing cash from the bank. If the balance exceeds $140,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 14% interest rate. On May 31, the loan balance is $33,000, and the company's cash balance Is $140,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!