Purchase Solution

Total dollar sales, cash receipts, net relevant cost and more

Not what you're looking for?

Ask Custom Question

Can you help me get started with this assignment?

1. Juro Supply forecasts purchases of 12,200 units in June. It sells each unit for $10.50. The firm has 1,000 units on hand on June 1. The desired ending inventory on June 30th is to be 20% higher than beginning inventory. Total dollar sales for June are expected to be:
a. $119,700
b. $126,000
c. $128,100
d. $130,200

2. Allen Co.'s sales are 10% cash and 90% on credit. Credit sales are collected as follows: 30% in month of sale, 50% the next month, 20% in the following month. On 12/31, the accounts receivable balance is $54,000, of which $12,000 is from November sales. Total sales for January are budgeted to be $100,000. Cash receipts budgeted for January total:
a. $70,000
b. $70,400
c. $74,000
d. $79,000

3. A boat costs $108,000 and, uninsured, was wrecked the first day it was used. It either can be disposed for $11,000 cash and replaced with a similar boat costing $110,000, or rebuilt for $98,000 and be brand new as far as operating characteristics and looks are concerned. The net relevant cost of replacing the boat is:
a. $ 87,000
b. $ 97,000
c. $ 99,000
d. $110,000

4. The relevant cost of rebuilding the boat described in the above question is:
a. $ 97,000
b. $ 98,000
c. $ 99,000
d. $110,000

5. Omaha Plating Corporation is considering purchasing a machine for $1,500,000. The machine will generate a net after-tax income of $100,000 per year for 15 years. The firm will use straight-line depreciation for the new machine over 10 years with no residual value. What is the payback period for the new machine?
a. 4 years
b. 5 years
c. 6 years
d. 10 years
e. 15 years

6. Carmino Company is considering an investment in an asset that generates net after-tax income of $6,000 at the end of each year of its four-year life. The asset has no salvage value. The firm is in the 40% tax bracket. The book values of the investment at the beginning of each year are:
Year 1-$30,000; Year 2 -$15,000; Year 3 -$7,500; Year 4 -$3,750
The asset's book rate of return on average investment is:
a. 12%
b. 27%
c. 36%
d. 43%

USE THE ABOVE QUESTION TO ANSWER THE FOLLOWING ONE.
7. The amount of after-tax net cash inflow from the asset in Year 3 is:
a. $ 6,000
b. $ 7,500
c. $ 8,100
d. $13,500

Purchase this Solution
Solution Summary

You will find the answers to this puzzling assignment inside, along with detailed explanations.

Solution Preview

1. Juro Supply forecasts purchases of 12,200 units in June. It sells each unit for $10.50. The firm has 1,000 units on hand on June 1. The desired ending inventory on June 30th is to be 20% higher than beginning inventory. Total dollar sales for June are expected to be:
b. $126,000
Beginning stock = 1000
Purchases in the month = 12200
Ending inventory = 1000*(1+20%)=1200
Units sold = 1000+12200-1200 = 12000
Price per unit = 10.50
Expected Sales for June = $126,000

2. Allen Co.'s sales are 10% cash and 90% on credit. Credit sales are collected as follows: 30% in month of sale, 50% the next month, 20% in the following month. On 12/31, the accounts receivable balance is $54,000, of which $12,000 is from November sales. Total sales for January are budgeted to be $100,000. Cash receipts budgeted for January total:
d. $79,000
Cash receipts ...

Purchase this Solution
Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

View More Free Quizzes
Related BrainMass Solutions

  • Finance:annuity,present value,annuity etc.

    KLM produced more net income per sales dollar in 2008 than in 2009. b. KLM's selling expenses were a smaller percentage of sales in 2008 than in 2009. c. KLM's total expenses were a greater percentage of sales in 2008 than in 2009.

  • Growth Rate, A/R, Contribution Margin, and Collection Float

    = 10,000 Total collection = $78,000 Cash receipts in April Cash sales of April = 110,000 X 60% = 66,000 20% of March sales = 90,000 X 20% = 18,000 20% of Feb sales = 70,000 X 20% = 14,000 Total collection = $98,000 Cash receipts in May Cash

  • How To Prepare a Master Budget for Victoria Kite

    March Total sales (100% on credit) Schedule b: Cash Collections January February March 60% of current month's sales 30% of previous month's sales 10% of second

  • Electronics Unlimited, Acme Consulting

    for Inventory 50 60 80 120 Payroll 30 30 30 Other Expenses 10 10 10 10 15 15 Total Payments 90 100 120 Net Cash Flow (5) 5 30 Receipts for sales occur in the same pattern as the first three months of the year.

  • Management Accounting Practice Exam

    Make sure you show your work and how you determined the cash receipts and payments for June.

  • Rebecca Company, Piccola Company, Guard Company, Ernesto

    This solution is comprised of a detailed explanation to journalize sales transactions, prepare sales revenues section of income statement, compute net purchases and cost of goods purchased, and identify internal control weaknesses over cash receipts and

  • Current Assets Minus Current Liabilities

    Statement of Cash Receipts and Expenditures For the Year Ending December 31, Year 1 Cash Receipts from Sales of Merchandise $25,000 Less: Cash Expenditures for Merchandise and Services Merchandise $10,000 Salaries 5,000 Rent 7,000 Total

  • Prepare a complete master budget for next quarter: Betterbuy Electronics Store

    Cash $29,000 Recent and Projected Sales Inventory $434,000 April $300,000 Accounts receivable $369,000 May 350,000 Net Furniture and fixtures $168,000 June 700,000 Total Assets $1,000,000 July 400,000 Accounts payable $489,000

  • Preparing the Statement of Cash Flows - Direct Method

    Payments to employees are $1,000 more than salary expense. e. Acquisition of planet assets is $101,000 f. Cash receipts from sale of land total $24,000 g. Cash receipts from issuance of common stock total $30,000 h.

View More Related Solutions