3. a) (4 pts) Given June? Historically, 50% ofthe and 22% pay the second month t

Question

3. a) (4 pts) Given June? Historically, 50% ofthe and 22% pay the second month the following inflow for May and purchasers pay in the me month, 25% pay the following month, after purchase. These 2 month late payers are assessed a 2% late Hiatrically,50%ofing Sales Forecasts, what is the expected e fee. Show your work July April 90K 11OK 8OK 70K b) (8 pts) Using the same sales forecast, what should be the budgeted amount needed for purchases for May and June? The Cost of Goods Sold (COGS) percentage is 70% of sales. The desired end ofmonth inventory is $10K plus 75% of the next month's COGS. Fill in the blanks. Mar 100K April 90K May 110K June 80K July 70K Sales COGS Ending Inventory Total S Needed Starting Inventory

Explanation / Answer

March April May June july

sales 100k 90k 110k 80k 70k

Cash 99.94k 87.70k

Inflows in May = (50%*110)+(22%*100)+(2% of 22%*100)+(25%*90) = 55+22+0.44+22.5 = 99.94

Inflows in June = (50%*80)+(22%*90)+(2%of 22%*90)+(25%*110) = 40+19.80+.40+27.5 = 87.70

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.