Problem

Cash receipts analysis In addition to the information presented in Mini-Exercise 14....

Cash receipts analysis In addition to the information presented in Mini-Exercise 14.1, the selling price for each unit is $18. Based on past experience, ABC expects that 30% of a month’s sales will be collected in the month of sale, 60% in the following month, and 8% in the second month following the sale.

Required:

Prepare an analysis of cash receipts from sales for ABC Company for August.

Refer to Mini-Exercise 14.1

Production budget ABC Company’s budgeted sales for June, July, and August are 12,000, 16,000, and 14,000 units, respectively. ABC requires 30% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 3,600 units.

Required:

Calculate the number of units to be produced in June and July.

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