Reference no: EM131394022
Cornerstone Exercise 1 - Sales Budget
FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:
|
Practice Balls
|
Match Balls
|
|
Units
|
Selling Price
|
Units
|
Selling Price
|
January
|
50,000
|
$8.75
|
7,000
|
$16.00
|
February
|
58,000
|
$8.75
|
7,500
|
$16.00
|
March
|
80,000
|
$8.75
|
13,000
|
$16.00
|
April
|
100,000
|
$8.75
|
18,000
|
$16.00
|
Required:
1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.
2. What if FlashKick added a third line-tournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of $45 each in January and February, and $48 each in March? Prepare a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.
Cornerstone Exercise 2 - Production Budget
FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:
|
Practice Balls
|
Match Balls
|
|
Units
|
Selling Price
|
Units
|
Selling Price
|
January
|
50,000
|
$8.75
|
7,000
|
$16.00
|
February
|
58,000
|
$8.75
|
7,500
|
$16.00
|
March
|
80,000
|
$8.75
|
13,000
|
$16.00
|
April
|
100,000
|
$8.75
|
18,000
|
$16.00
|
FlashKick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls.
Required:
Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year.
A separate production budget is constructed for each product or service provided. The production budget depends on the unit sales shown in the sales budget. Units to be produced are calculated by considering beginning and ending (desired) inventory amounts and unit sales.
Cornerstone Exercise 3 - Algorithmic
Cash Receipts Budget and Accounts Receivable Aging Schedule
Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales:
Quarter 1
|
$4,610,000
|
Quarter 2
|
5,930,000
|
Quarter 3
|
5,970,000
|
Quarter 4
|
8,390,000
|
In Shalimar's experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $4,960,000 and for the fourth quarter of the current year are $6,860,000.
Required:
1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year.
2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. If an amount is zero, enter "0".
What are some of the techniques to measure the reliability
: What are some of the techniques to measure the reliability of business analytics decisions, and how are they used to review the results?
|
Compute the expected return and standard deviation
: Suppose you form a portfolio that consists of 60 percent Investment ABC and 40 percent Investment RST. Compute the expected return and standard deviation of the portfolio.
|
Explain strategy used by intel companies in global expansion
: Discuss the four strategies firms can use when entering foreign markets. Using specific examples, describe the strategies used by the Intel companies in global expansion:
|
Does the information media have social responsibility
: Does the information media have social responsibility? If yes, in what ways? If not, why not? What is the role of the information and news media in the shaping of political opinions?
|
Construct a sales budget for flashkick
: Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent
|
Should the project be purchased
: Compute both the traditional payback period (PB) and the discounted payback period (DPB) for a project that costs $270,000 if it is expected to generate $75,000 per year for five years? The firm's required rate of return is 11 percent. Should the ..
|
Discuss conflicts of interests or the ethical considerations
: In a 1,500 word essay, discuss at least 10 of the conflicts of interests or the ethical considerations that are raised In the articles regarding President Trump and his nominees'.
|
Compute traditional payback period (pb) for a project
: Compute the traditional payback period (PB) for a project that costs $64,000 if it is expected to generate $16,000 per year for six years? If the firm's required rate of return is 12 percent, what is the project's discounted payback period (DPB)? ..
|
Explain what is the legal nature of marwans employment
: Did Marwan commit sexual harassment? If so, what type? Explain your answers and the terms you use. What is the legal nature of Marwan's employment? Explain your answers and the terms you use.
|