Reference no: EM13865401
Question 1
The Tin Bucket Company projects the following direct materials purchases:
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Purchases on Account
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Cash Purchases
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December 2011
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$30,000
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$20,000
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January 2012
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50,000
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30,000
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February 2012
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60,000
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20,000
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March 2012
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60,000
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30,000
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The company pays for the cash purchases when they are made. The company pays for 70% of purchases on account in the month that the purchases are made and 30% in the next month. Prepare a schedule of expected cash payments (cash budget) for the first quarter of 2012.
All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. For problems, be sure to answer all questions and provide all requested information.
Question 2
How can a relative profitability analysis conducted by a business provide better information for a business than an absolute profitability analysis?
Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. For problems, be sure to answer all questions and provide all requested information.
Question 3
If the demand for a certain product is relatively inelastic, what effect on product sales can be expected if the company that produces the product increases the price of the product significantly? Why?
Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. For problems, be sure to answer all questions and provide all requested information.
Question 4
Peanut Processing Company produces cans of peanuts. The company expects sales of 15,000 cans in January, 16,000 cans in February, 17,000 cans in March, and 17,000 cans in April. There are 1,500 cans in inventory at the beginning of January. The company tries to maintain a monthly ending inventory of cans of peanuts equal to 10% of the next months projected sales.
Prepare a production budget for the company for the months of January, February, and March.
All sources used, including the textbook, must be referenced; paraphrased and quoted material.