use 30 of the 5 month leases starting in March, use 100 5 month leases starting in April, 170 5 month leases starting in May, 160 5 month leases startig in June and 10 5 month leases starting July
Sundown Rent-a-Car, a large automobile rental agency operating in the Midwest, is preparing a leasing strategy for the next six months
A firm must plan production for the next six months. Each unit costs $480 to produce and it has an inventory holding cost of $20 per unit per month based on ending inventory levels. The cost to hire a worker is $330, and the cost to fire a worker is $660 per worker. Each worker produces 10 units per month. There are 25 persons on the payroll at the beginning of the first month. The company currently has 200 units...
Ed’s Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March $ 32,000 June $ 36,000 April 38,000 July 44,000 May 27,000 August 46,000 Sales in January and February were $35,000 and $34,000 respectively. Experience has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. a....
Red Car Enterprise The following production budget for the next four months was provided by Red Car Enterprises Production (units) April 564 May 605 June 597 July 577 Each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 846 pounds. Assume direct materials cost $4 per pound Prepare a direct materials budget for April,...
Amy Lloyd is interested in leasing a new Honda and has contacted three automobile dealers for pricing information. Each dealer offered Amy a closed-end 36-month lease with no down payment due at the time of signing. Each lease includes a monthly charge and a mileage allowance. Additional miles receive a surcharge on a per-mile basis. The monthly lease cost, the mileage allowance, and the cost for additional miles follow: Dealer Monthly Cost Mileage Allowance Cost per Additional Mile Hepburn Honda...
Zira Co. reports the following production budget for the next four months. April July 607 May June Production (units) 594 635 627 Each finished unit requires four pounds of raw materials and the company wants to end each month with raw materials inventory equal to 20% of next month's production needs. Beginning raw materials inventory for April was 475 pounds. Assume direct materials cost $4 per pound. Prepare a direct materials budget for April, May, and June. (Round your intermediate...
Purchases Budget in Units and Dollars Budgeted sales of Wirtz Music Shop for the first six months of 2017 are as follows: Month Unit Sales Month Unit Sales January 155,000 April 240,000 February 185,000 May 205,000 March 225,000 June 265,000 Beginning inventory for 2017 is 35,000 units. The budgeted inventory at the end of a month is 40 percent of units to be sold the following month. Purchase price per unit is $5. Prepare a purchases budget in units and...
· You need to do a cash budget forecast for Viggio for the next six months· From this cash budget see if Viggio may need to reuse the line of credit that the bank has set up for him. · If he does need to use it, how much of it will he need to borrow and what seems to be the reason that his cash flow isn't what it should be. Viggio Wines Cash BudgetLouis Viggio was doing something he...
ABC Ltd is a wholesaler. The management has been extremely worried about the entity’s cash position over the last few years. In January, they sought your advice and asked you to prepare a cash budget for the forthcoming month of May. The business has provided the following information to assist in this task. Estimated total sales for the next six months to 30 June, 2019 are as follows: January February March April May June Total sales $ 152,500 $ 171,250...
Aloan Co. provides the following sales forecast for the next three months: January February March 3,200 4,400 5,200 Sales units The company wants to end each month with ending finished goods inventory equal to 20% of the next month's sales. Finished goods inventory on December 31 is 640 units. The budgeted production units for January are: Multiple Choice 3,200 units. 4,080 units. 128 units. 3,440 units. 2,960 units. Webster Corporation is preparing its cash budget for April. The March 31...
Production and Purchases Budgets At the beginning of October, Comfy Cushions had 1,600 cushions and 10,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 8,000 cushions November 10,000 cushions December 13,000 cushions Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet...