Relationships of the master-budget components

Assignment Help Accounting Basics
Reference no: EM13860850

Relationships of the Master-Budget Components

Dakota Fan, Inc., manufactures an inexpensive household fan that it sells to retailers for $40 per unit. All sales are on account, with 35 percent of sales collected in the month of sale and 65 percent collected in the following month. The data that follow were extracted from the company's accounting records.

  • Dakota Fan maintains a minimum cash balance of $21,000. Total payments in January 20x1 are budgeted at $225,000.
  • A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:

 

Cash Receipts

 

January

February

From December 31 accounts receivable

$130,000

 

From January sales

88,000

$160,000

From February

 

74,900

  • March 20x1 sales are expected to total 6,000 units.
  • Finished-goods inventories are maintained at 20 percent of the following month's sales.
  • The December 31, 20x0, balance sheet revealed the following selected figures: cash, $23,700; accounts receivable, $130,000; and finished goods, $24,150.

Required:

1. Determine the number of units that Dakota Fan sold in December 20x0.

2. Compute the sales revenue for March 20x1.

3. Compute the total sales revenue to be reported on Dakota Fan's budgeted income statement for the first quarter of 20x1.

4. Determine the accounts receivable balance to be reported on the March 31, 20x1, budgeted balance sheet.

5. Calculate the number of units in the December 31, 20x0, finished-goods inventory

6. Calculate the number of units of finished goods to be manufactured in January 20x1.

7. Calculate the financing required in January, if any, to maintain the firm's minimum cash balance.

Reference no: EM13860850

Questions Cloud

Write a program that read up to ten letters into an array : Write a program that will read up to 10 letters (characters) into an array and write the letters back to the screen in the reverse order.
Investment expenditures and government purchases : Suppose that consumption expenditures, investment expenditures, and government purchases are 75 billion, 25 billion and 20 billion, respectively. How large should the GDP be so that the net export is zero?
Intimate connection between politics and economics freedom : There is an intimate connection between politics and economics, and different systems of the two can only exist side-by-side in certain pairings. For instance, says Friedman, a society which is (economically) socialist cannot also be (politically) de..
Design a bidirectional algorithm for stop-and-wait protocol : Design a bidirectional algorithm for the Stop-and-Wait Protocol using piggybacking. Design a bidirectional algorithm for the Go-Back-N ARQ Protocol using piggybacking.
Relationships of the master-budget components : Dakota Fan, Inc., manufactures an inexpensive household fan that it sells to retailers for $40 per unit. All sales are on account, with 35 percent of sales collected in the month of sale and 65 percent collected in the following month. The data th..
How would you expect each to impact the demand for taxis : At Dulles airport, only taxis and privately owned cars are allowed to use the highway between downtown and the airport. That taxi market is competitive. There is a special lane for taxis so they are always able to travel at 55mph. Suppose P,E and G c..
Determine her utility maximizing quantities of x and y : Assume Hailey's Utility Function is U = x^2 y . The price of X is $8 per unit and the price of Y is $2 per unit. Her income is currently $240 / month. Determine her utility maximizing quantities of x and y. Suppose the price of X goes down to $4 per ..
Regardless of work or wage status : Suppose the government were to provide a $2 per hour subsidy for families who purchases child care, regardless of work or wage status. This will..
Combinatorial regulation of gene expression suggests : Combinatorial regulation of gene expression suggests that DNA sequences bound by particular transcription factors might be mixed and matched in different combinations to provide different specificities for regulating downstream genes. Using three dif..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd