![subject](/tpl/images/cats/ekonomika.png)
Business, 24.05.2021 14:00 SoccerHalo
Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow.
Units Dollars
April (actual) 5,000 $800,000
May (actual) 2,400 384,000
June (budgeted) 5,500 880,000
July (budgeted) 4,500 879,000
August (budgeted) 3,600 576,000
All sales are on credit. Recent experience shows that 26% of credit sales is collected in the month of the sale, 44% in the month after the sale, 26% in the second month after the sale, and 4% proves to be uncollectible. The product’s purchase price is $110 per unit. 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly inventory of 24% of the next month’s unit sales plus a safety stock of 95 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,440,000 and are paid evenly throughout the year in cash. The company’s minimum cash balance at month-end is $110,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $110,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 11% interest rate. On May 31, the loan balance is $44,500, and the company’s cash balance is $110,000.
Required:
a. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July.
b. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month.
![ansver](/tpl/images/cats/User.png)
Answers: 3
![](/tpl/images/ask_question.png)
![](/tpl/images/ask_question_mob.png)
Another question on Business
![question](/tpl/images/cats/ekonomika.png)
Business, 21.06.2019 18:40
Which of the following is most likely to lead to a general decrease in wages? a. elastic demand b. public goods c. an economic recovery d. immigration 2b2t
Answers: 1
![question](/tpl/images/cats/ekonomika.png)
Business, 21.06.2019 20:20
Avx home entertainment, inc., recently began a “no-hassles” return policy. a sample of 500 customers who recently returned items showed 400 thought the policy was fair, 32 thought it took too long to complete the transaction, and the rest had no opinion. on the basis of this information, make an inference about customer reaction to the new policy. (round your answers to 1 decimal place.)
Answers: 3
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 05:50
Which is one solution to levy the complexity of the global matrix strategy with added customer-focused dimensions?
Answers: 3
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 10:40
What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk
Answers: 1
You know the right answer?
Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow.
Units Doll...
Questions
![question](/tpl/images/cats/health.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 05.12.2019 17:31
![question](/tpl/images/cats/istoriya.png)
![question](/tpl/images/cats/fizika.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/biologiya.png)
![question](/tpl/images/cats/geografiya.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/fizika.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/biologiya.png)
![question](/tpl/images/cats/ekonomika.png)
![question](/tpl/images/cats/ekonomika.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/fizika.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/biologiya.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/ekonomika.png)
![question](/tpl/images/cats/informatica.png)
Computers and Technology, 05.12.2019 17:31