Answer:
$370 book value.
Explanation:
The computation of the book value of Carmen's common stock is shown below:
= $20 million + $36 million + $18 million
= $74 million.
Now
= $20 million total par value × $100 par value/share
= 200,000 shares
Now
= $74 million ÷ 200,000 shares
= $370 book value.
Assuming that a customer has the ability to pay, revenue from a sporting event is recognized by the event promoter (the party responsible for all event business elements such as selling tickets, promoting the event, securing the venue, etc.) when:________a. A waiting list for the sporting event’s tickets has been formedb. When the cash from selling the tickets is collectedc. The tickets to the sporting event are soldd. The sporting event takes placee. All of the listed answers
Answer: The sporting event takes place.
Explanation:
By the Revenue Recognition principle of Accrual based accounting, revenue is only to be recognized when it is earned. In other words, it should only be recognized if the service or good that was paid for has been delivered.
In the above scenario, the service to be delivered is the sporting event. As such, the event promoter should only recognize the revenue when the sporting event is delivered by taking place if they are going by the Revenue recognition principle which is a principle recognized by both U.S. GAAP and IFRS.
The manager of a discretionary account places client funds in a suitable investment because it provides a higher commission than alternatives that are also suitable for the client. The selected investment subsequently appreciates in value. This investment manager did not:
Answer: C. have a conflict of interest because the investment was suitable for the client
Explanation:
Conflict of interest occurs when the aims of two different parties are not thesame. In such scenario, the best interest of an individual is different from the best interest of the other person.
Since the client funds placed for investment brought about a good return, then the investment manager doesn't have a conflict of interest because the investment was suitable for the client.
Olinick Corporation is considering a project that would require an investment of $343,000 and would last for 8 years. The incremental cash inflows of the project per year at $107,000. The scrap value of the project's assets at the end of the project would be $23,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:
Answer:
3.2 years
Explanation:
Calculation to determine what The payback period of the project is closest to:
Using this formula
Payback period = Investment required ÷ Annual net cash inflow
Let plug in the formula
Payback period= $343,000 ÷ $107,000 per year Payback period= 3.2 years
Therefore The payback period of the project is closest to:3.2 years
Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing, the firm will most likely:_______.a. pool funds to invest in a business venture. b. give up a share of its ownership. c. borrow funds to be returned on a designated maturity date. d. pay periodic dividends.
Answer:
The answer is B.
Explanation:
The correct option is B. - give up a share of its ownership. Venture capitalist invest in a start up ventures or small businesses that they believe have high future prospects.
Because venture capitalists are exprienced business wise and have enough money, they tend to make or provide managerial decisions. The business will be in form of partnership, hence, Artificial Intelligence Inc. giving up part of its ownership.
It is not a must venture business pay a periodic dividend but business capitalist share in the profit or loss of the business.
Maybepay Life Insurance Co. is selling a perpetual contract that pays $3,894/year. The contract currently sells for $141,042. What is the rate of return on this investment? Enter answer as 4 decimals (e.g. 0.1234).
Answer:
2.76%
Explanation:
Let x be the yearly return
Sales price = $3,894 / x
$141,042 = $3,894 / x
x = $3,894 / $141,042
x = 0.0276088
x = 2.76%
So, the rate of return on this investment is 2.76%.
List two characteristics of the market structure where Telkom operates before the emergence of the big three
Answer:
The two main characteristics of the market structure where Telkom operates before the emergence of the big three are:
1. Profit-maximization as the single seller and price-fixer
2. High barriers to entry of all entities backed by government regulations
Explanation:
Telkom was the only fixed-line and state-owned monopolist in South Africa until the mid-1990s when the big three telecom competitors emerged following deregulation. During the era when it was a monopolist, Telkom was the only provider of fixed-line telephone services. At that time, mobile networks had not been introduced. As a single seller of its services, Telkom practiced price discrimination and maximized profits, ensuring that the barriers to entry of other companies were strongly protected by law.
Samson Corporation had sales of $1,000,000 during 2012, of which 60 percent were on credit. On December 31, 2012, Accounts Receivable totaled $80,000, and Allowance for Bad Debts had a credit balance of $1,200. Given this information, if uncollectible receivables are estimated to be 1/2 of 1 percent of credit sales, the adjusting entry to account for uncollectible receivables as of December 31, 2012, would include a:________
A) Debit to Bad Debt Expense of $3,000
B) Debit to Bad Debt Expense of $1,800
C) Credit to Bad Debt Expense of $3,000
D) Credit to Allowance for Bad Debts of $5,000
Answer:
A) Debit to Bad Debt Expense of $3,000
Explanation:
Based on the information given the appropriatethe adjusting journal entry to ACCOUNT FOR UNCOLLECTIBLE RECEIVABLES as of December 31, 2012, would include a DEBIT TO BAD DEBT EXPENSE OF $3,000
BAD DEBT EXPENSE=$1,000,000 *.6*0.005
BAD DEBT EXPENSE=$3,000
During March, Pendergraph Corporation incurred $65,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $67,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:
Answer: Credit to manufacturing overhead of $67000.
Explanation:
The journal entry to record the application of Manufacturing Overhead to Work in Process would be:
Debit Work in Progress $67000
Credit Manufacturing overhead $67000.
( To record the application of manufacturing overhead to work in process).
The following information was extracted from the 2014 financial statements of Max Company: Income from continuing operations before income tax $470,000 Selling and administrative expenses 320,000 Income from continuing operations 329,000 Gross profit 900,000 Income before extraordinary item 290,000 The amount reported for other expenses and losses is:_________ a. $141,000 b. $39,000. c. $110,000. d. $150,000.
Answer:
c. $110,000
Explanation:
The computation of the amount reported for other expenses and losses is shown below;
= Gross profit - Selling and administrative expenses - Income from continuing operations before income tax
= $900,000 - $320,000 - $470,000
= $110,000
Hence, the option c is correct
9. When Margot applies for a loan, she needs to demonstrate to the bank that she has capital. What could she show them to best demonstrate her capital?
-copies of her will, power of attorney, and living will
-copies of her mortgage, investment reports, and bank statements
-a letter of recommendation from a former employer
-a typed essay detailing what she has been through the past few years
Answer:
copies of her mortgage, investment reports, and bank statements
Explanation:
The only option that properly demonstrates her capital would be copies of her mortgage, investment reports, and bank statements. Her mortgage shows the bank that she is able to pay her debt on time every month. Her bank statements show how much money she is spending on a monthly basis. Lastly, her investment reports show all of her assets and how much they are earning per month, all of this combined makes up her capital which is basically the amount of money she has, both liquid and in assets.
Answer:
B.
copies of her mortgage, investment reports, and bank statements
Explanation:
importance of studying business
Business majors learn how to research information using quantitative skills, and then develop ideas based on that information to solve problems.
Business also involves people — customers and employees — so communication and interpersonal skills are vitally important as well.
Business activity affects the daily lives of all people, as they work, spend, save, invest, travel, and play. Business influences jobs, incomes, and opportunities for personal enterprise and development. Business has a significant effect not only on the standard of living and quality of life, but also on the environment in which people live.
At some point in their lives, all students will encounter the world of business. They, therefore, must be prepared to engage in business activity with confidence and competence, by understanding how businesses function and the role it plays in our society. Students should familiarise themselves with the skills that are required in the business environment and the impact these skills can have on their own lives and on society.
Studying business involves not only involves studying individuals, communities, and organizations, it involves assessing their needs and problems, as well as generating solutions. This subject will build a strong foundation for those students who wish to move on to further study and training in specialised areas such as management, international business, marketing, accounting, information and communication technology, or entrepreneurship. It will also provide practical skills for those who wish to move directly into the workplace.
Business studies also provides students with a new, practical context for many of the subjects they have studied, including mathematics, science and technology, language, and social studies. It will help students to recognise the relevance of these subjects as they are applied in the world of business – for example, in helping people with their needs, challenges, and problems; and in creating products and services that help to improve the quality of life.
Business studies demonstrates how a variety of areas of study can be combined in productive activity. It provides an increased understanding of mutual dependence through business system, as people becoming increasingly dependent on others. Finally, as the business environment is dynamic and ever-changing, it can be an important tool to develop skills to cope with change.
A bank has an 8 percent reserve requirement, $10,000 in deposits, and has loaned out all it can, given the reserve requirement. a. It has $1,250 in reserves and $8,750 in loans. b. It has $8,000 in reserves and $2,000 in loans. c. It has $800 in reserves and $9,200 in loans. d. It has $80 in reserves and $9,920 in loans.
Answer:
c. It has $800 in reserves and $9,200 in loans.
Explanation:
Calculation to determine the given reserve requirement
Reserves=8%*$10,000
Reserves=$800
Loans=$10,000-$800
Loans=$9,200
Therefore given the reserve requirement It has $800 in reserves and $9,200 in loans.
After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $14,400 price, but financing through the dealer is no bargain. He has $3,500 cash for a down payment, so he needs an $10,900 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $10,900 for a period of four years at an add-on interest rate of 12 percent. What is the total interest on Richard's loan? What is the total cost of the car?
Answer:
Richard
a. The total interest on Richard's loan is:
= $5,232.
b. The total cost of the car is:
= $19,632.
Explanation:
a) Data and Calculations:
Cost of car selected = $14,400
Down payment on car = 3,500
Loan obtained = $10,900
Interest rate = 12% add-on
Period of loan = 4 years
Total interest on the loan = $5,232 ($10,900 * 12% * 4)
Total cost of the car = $19,632 ($14,400 + $5,232)
b) Richard will be paying annual interest of $1,308 for four years, which will total $5,232 since interest is paid on the full amount borrowed for each year, despite the fact that some portion of the principal has been repaid.
A team of analysts at Amazon is researching the viability of producing a smart watch. How might they estimate potential demand for their smart watch
Solution :
It is given that an analyst team at Amazon is researching the feasibility and the viability of manufacturing a smart watch.
The analyst team must carry out few steps in order to estimate the potential demand for the smart watch. They should begin with customer survey to know for the demand of the watch. Then the team find the total quantity of the product that is demanded by the customers, the third step is to scale the quantities demanded by the survey respondents. The final step is the team should plot and make the demand curve for the watch in the market.
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement:
Sales $1,638,000
Variable expenses 679,180
Contribution margin 958,820
Fixed expenses 1,055,000
Net operating income (loss) $(96,180)
In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information:
Division
East Central West
Sales $408,000 $650,000 $580,000
Variable expenses as a
percentage of sales 51% 35% 42%
Traceable fixed expenses $280,000 $333,000 $204,000
Required:
1. Prepare a contribution format income statement segmented by divisions.
2. The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented
Answer:
Wingate Company
1. Contribution Format
Segmented Income Statement
For the most recent month
East Central West Total
Sales $408,000 $650,000 $580,000 $1,638,000
Variable expenses as a
percentage of sales 208,080 227,500 243,600 679,180
Contribution margin $199,920 $422,500 $336,400 $958,820
Traceable fixed expenses $280,000 $333,000 $204,000 $817,000
Non-traceable fixed expenses 238,000
Net income ($80,080) $89,500 $132,400 ($96,180)
2. The company's net operating loss will decrease by $28,824.
Explanation:
a) Data and Calculations:
WINGATE COMPANY
Income Statement for the most recent month
Sales $1,638,000
Variable expenses 679,180
Contribution margin 958,820
Fixed expenses 1,055,000
Net operating income (loss) $(96,180)
Division
East Central West Total
Sales $408,000 $650,000 $580,000 $1,638,000
Variable expenses as a
percentage of sales 51% 35% 42%
Traceable fixed expenses $280,000 $333,000 $204,000 $817,000
Non-traceable fixed expenses 238,000
West Division:
Traceable fixed costs = $229,000 ($204,000 + $25,000)
Sales revenue = $672,800 ($580,000 * 1.16)
Variable expenses = $282,576 ($672,800 *42%)
1. Contribution Format
Segmented Income Statement
For the most recent month
East Central West Total
Sales $408,000 $650,000 $580,000 $1,638,000
Variable expenses as a
percentage of sales 208,080 227,500 243,600 679,180
Contribution margin $199,920 $422,500 $336,400 $958,820
Traceable fixed expenses $280,000 $333,000 $204,000 $817,000
Non-traceable fixed expenses 238,000
Net income ($80,080) $89,500 $132,400 ($96,180)
2. Contribution Format
Segmented Income Statement
For the most recent month
East Central West Total
Sales $408,000 $650,000 $672,800 $1,730,800
Variable expenses as a
percentage of sales 208,080 227,500 282,576 718,156
Contribution margin $199,920 $422,500 $390,224 $1,012,644
Traceable fixed expenses $280,000 $333,000 $229,000 $842,000
Non-traceable fixed expenses 238,000
Net income ($80,080) $89,500 $161,224 ($67,356)
Decrease in net operating loss = $28,824 ($96,180 - $67,356)
Farrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March appear below: In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment. Select one: a. test b. test c. test d. test
Answer:
The answer is "[tex]\$ 137,000[/tex]"
Explanation:
Please find the complete question in the attached file.
Commercial sector contribution margin
[tex]=\$137,000[/tex]
Margin per unit of contribution = sales price – Unit cost variables
Margin of Contributions = Revenue Sales - Fixed expenses
Aerospace industry variable costs
[tex]=\$280,000- \$143,000 =\$ 137,000[/tex]
The value of which of these expressions is closest to e?
Answer: B
Explanation:
Therefor, value 2.659 is closest to the value of e
( I hope this helped of not I’m sorry)
James Corporation is planning to issue bonds with a face value of $508,500 and a coupon rate of 6 percent. The bonds mature in 7 years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FV of $1, an PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases:
Answer:
The solution according to the given query is summarized in the explanation segment below.
Explanation:
Given:
Face value,
= $508,500
Coupon rate,
= 6%
Bonds mature in years,
= 7
Now,
(a)
Issue price will be:
= [tex]508500\times 0.75788+15255\times 12.10626[/tex]
= [tex]385381.98+184680.99[/tex]
= [tex]570,063[/tex] ($)
(b)
Issue price will be:
= [tex]508500\times 0.66112+15255\times 11.29607[/tex]
= [tex]336179.52 + 172321.55[/tex]
= [tex]508,501[/tex] ($)
(c)
Issue price will be:
= [tex]508500\times 0.55839+15255\times 10.39090[/tex]
= [tex]283941.32 +158513.18[/tex]
= [tex]442,454[/tex] ($)
Carroll Corporation has two products, Q and P. During June, the company's net operating income was $28,000, and the common fixed expenses were $60,000. The contribution margin ratio for Product Q was 40%, its sales were $145,000, and its segment margin was $52,000. If the contribution margin for Product P was $50,000, the segment margin for Product P was:
Answer:
$36,000
Explanation:
Calculation to determine what the segment margin for Product P was
Using this formula
Net operating profit= (Segment margin Q + Segment margin P) - Common fixed expenses
Let plug in the formula
28,000= (52,000 + segment margin P) -60,000
88,000= 52,000 + segment margin P
36,000= segment margin P
Therefore the segment margin for Product P was:$36,000
1. If 30,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 35,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 30,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 35,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 30,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 35,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 30,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 35,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? (Round per unit values to 2 decimal places.)
Question Completion:
Kubin Company's relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Amount per Unit $9.00 $6.00 $ 3.50 $7.00 $ 5.50 4.50 $3.00 2.50 Required:
Answer:
Kubin Company
1. Variable cost per unit produced and sold is = $21.50
2. Variable cost per unit produced and sold is $21.50
3. Total variable cost = $645,000
4. Total variable cost = $752,500
5. Average fixed manufacturing cost per unit produced is = $7.58
6. Average fixed manufacturing cost per unit produced is = $6.50
7. The total amount of fixed manufacturing overhead incurred is $227,500
8. The total amount of fixed manufacturing overhead incurred is $227,500
Explanation:
a) Data and Calculations:
Relevant range of production = 30,000 to 35,000
Average costs per unit with production and sales of 32,500 units are:
Amount per Unit
Direct materials $9.00
Direct labor $6.00
Variable manufacturing overhead $3.50
Fixed manufacturing overhead $7.00
Fixed selling expense $5.50
Fixed administrative expense $4.50
Sales commissions $3.00
Variable administrative expense $2.50
Variable costs:
Production:
Direct materials $9.00
Direct labor $6.00
Variable manufacturing overhead $3.50
Selling:
Sales commissions $3.00
Total variable costs, produced and sold $21.50
Total variable cost = $645,000 ($21.50 * 30,000)
Total variable cost = $752,500 ($21.50 * 35,000)
Average fixed manufacturing cost per unit produced = Total fixed manufacturing cost = $7 * 32,500/30,000 = $7.58
Average fixed manufacturing cost per unit produced = Total fixed manufacturing cost = $7 * 32,500/35,000 = $6.50
Answer:
the answer is 30,000+35,000+30,000+35,000+30,000+35,000+30,00+35,000=$26,0000
. Sam Rothstein wants to borrow $15,500 to be repaid in quarterly installments over five years at 16% compounded quarterly. How much will his payment be
Answer:
$1,140.52 per Quarter
Explanation:
Loan Amount (P) = $15,500
Quarterly Interest Rate (n) = 4.00% [16.00% / 4]
Number of period (n) = 20 Periods [5 * 4]
Quarterly Loan Payment = [P * {r*(1+r)^n} ] / [(1+r)^n - 1]
= [$15,500 * {0.04 * (1+0.04)^20}] / [(1+0.04)^20 - 1]
= [$15,500 * {0.04 * 2.1911231}] / [2.1911231 - 1]
= [$15,500*0.0876449] / 1.1911231
= $1,358.50 / 1.1911231
= $1,140.52 per Quarter
Demand is the decision a consumer makes about what product to purchase.
-True
-False
The marginal propensity to expend is .85. Autonomous expenditures are $3,000. What is the level of equilibrium income in the economy
The level of equilibrium income in the economy is $20,000
Calculating the problem:
The level of equilibrium income in the economy:
Equilibrium (Y) = 3000+ 0.85 Y
Y - 0.85 Y = 3000
0.15 Y = 3000
Y = 3000 ÷ 0.15
Y = 20,000
The equilibrium income is 20,000.
How does the increase impact the income level at equilibrium?The ideal level of income is:
It describes a situation in which an economy's production and market demand are balanced. When the necessary aggregate demand for goods and services equals the necessary aggregate supply, the economy is at an equilibrium level of revenue and output.
In the income-expenditure model, the equilibrium occurs at the GDP level where total spending equals gross domestic product (or GDP). This equilibrium can be located graphically and algebraically.
At a certain interest rate, demand for money rises as income does. If there is a fixed supply of money, the interest rate must rise to reduce the demand for money and preserve equilibrium.
Learn more about Equilibrium here
brainly.com/question/27993423
# SPJ 2
Clover Hardware sold a range of products. A few weeks ago, orders arrived for the garden center and outdoor living areas. 500 grills, purchased at a cost of $75 each, were distributed among 10 locations. 200 were sold for $175 each across all locations. The cost of goods sold totals __________.
Answer:
COGS= $15,000
Explanation:
Giving the following information:
Purchase= 500 grills
Unitary cost= $75
Units sold= 200
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 0 + 500*75 - 300*75
COGS= $15,000
or;
COGS= 200*75= $15,000
giving away 100 for fun
Answer:
Explanation:
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In the presence of personal tax, explain how cash dividends affect individual shareholders differently than stock repurchases.
Answer:
The summary of the given statement is summarized throughout the below segment.
Explanation:
Cash dividend declared:
The cash payment will be made by stakeholders as either revenue, as well as the company's stock decreases through the equal amount of payment announced each unit.Consequently, the 'Modigliani and Miller' approach does not result throughout almost every gains or loss to particular stockholdersBuyback of Shares:
Throughout this scenario, the Business acquires up later the current owners' personal or existing interests.Therefore that on the day of purchase, stockholders receive the identical payment.M Corporation produces and sells Product D. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product D over the next four months are:
June July August September
Budgeted sales in units 40,000 60,000 50,000 80,000
Budgeted production for August would be:__________.
A. 77,000 units
B. 80,000 units
C. 57,500 units
D. 107,000 units
Answer:
Production= 57,500 units
Explanation:
Giving the following information:
To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month.
To calculate the production for July, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 60,000 + (0.25*50,000) - (0.25*60,000)
Production= 57,500 units
Suppose the current level of output is 5000. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively, a 10% increase in capital combined with a 5% increase in labor and a 5% increase in productivity would increase the current level of output to :_______
Answer:
5575
Explanation:
The computation is shown below;
Factor Elasticity Increase Effective Increase
A B A × B
Capital 0.3 10% 3.00%
Labor 0.7 5% 3.50%
Increase due to Productivity 5.00%
Total Increase in Output 11.50%
(3% + 3.5% + 5%)
Original Output 5000
Increase in Output (5000 × 11.5%) 575
Increase Output (5000 + 575) 5575
The federal unemployment tax is levied on a.employers and is deducted from employees' earnings. b.employees and employers. c.employers and is not deducted from employees' earnings. d.employees and is deducted from customer payments.
Answer:
c. employers and is not deducted from employees' earnings.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed.
The federal unemployment tax act (FUTA) is reported on Form 940 of the internal revenue service (IRS). It's a federal payroll tax imposed on employers to provide unemployment compensation to employees who have lost their jobs in states.
Basically, the federal unemployment tax act (FUTA) is levied on employers alone i.e it's being paid by the employers only.
This ultimately implies that, the federal unemployment tax is levied on employers and is not deducted from employees' earnings.
Sheffield Corp. estimates its sales at 240000 units in the first quarter and that sales will increase by 24000 units each quarter over the year. They have, and desire, a 25% ending inventory of current quarter's sales in units. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at
Answer:
Sheffield Corp.
The Production in units for the third quarter should be budgeted at:
= 294,000 units.
Explanation:
a) Data and Calculations:
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Sales units 240,000 264,000 288,000 312,000
Ending inventory 60,000 66,000 72,000 78,000
Units available for sale 300,000 330,000 360,000 390,000
Less Beginning inventory 0 60,000 66,000 72,000
Production units 300,000 270,000 294,000 318,000