Totz Company produces jump ropes. Totz Company has the following sales projections for the upcoming year:First quarter budgeted jump rope sales in units17,000Second quarter budgeted jump rope sales in units20,000Third quarter budgeted jump rope sales in units20,000Fourth quarter budgeted jump rope sales in units25,000Inventory at the beginning of the year was 4,500 jump ropes. Totz Company wants to have 20% of the next quarter's sales in units on hand at the end of each quarter. How many jump ropes should Totz Company produce during the first quarter?

Production budget for First quarter= 16,500 units

Explanation:

The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories.

Production = Sales volume + closing inventory - opening inventory

Closing inventory = 20% × second quarter sales

                           = 20% × 20,000 = 4,000 units

Production budget for the first quarter

=17,000 + 4000 -4500

= 16,500 units

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.