Badlands, Inc. manufactures a household fan that sells for $40 per unit. All sales are on...

Solutions

Related Solutions

Expert Solution

Badlands, Inc. manufactures a household fan that sells for $40 per unit. All sales are on...

Badlands, Inc. manufactures a household fan that sells for $20 per unit. All sales are on...

Badlands, Inc. manufactures a household fan that sells for $20 per unit. All sales are on...

Badlands, Inc. manufactures a household fan that sells for $25 per unit. All sales are on...

Badlands, Inc. manufactures a household fan that sells for $20 per unit. All sales are on...

Towing Company manufactures and sells a single product for $40 per unit. Variable costs are $30...

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses...

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses...

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses...

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses...

Badlands, Inc. manufactures a household fan that sells for $40 per unit. All sales are on account, with 30 percent of sales collected in the month of sale and 70 percent collected in the following month. The data that follow were extracted from the company’s accounting records.

Badlands maintains a minimum cash balance of $14,000. Total payments in January 20x1 are budgeted at $220,000.
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 $ 112,000

From January sales 94,000 $ 150,000

From February sales 65,400

March 20x1 sales are expected to total 5,000 units.
Finished-goods inventories are maintained at 30 percent of the following month’s sales.
The December 31, 20x0, balance sheet revealed the following selected figures: cash, $24,300; accounts receivable, $112,000; and finished goods, $25,050.

Determine the number of units that Badlands sold in December 20x0.
Compute the sales revenue for March 20x1.
Compute the total sales revenue to be reported on Badlands’ budgeted income statement for the first quarter of 20x1.
Determine the accounts receivable balance to be reported on the March 31, 20x1, budgeted balance sheet.
Calculate the number of units in the December 31, 20x0, finished-goods inventory.
Calculate the number of units of finished goods to be manufactured in January 20x1.
Calculate the financing required in January, if any, to maintain the firm’s minimum cash balance.

ekkarill92 answered 1 hour ago

Next > < Previous

Badlands, Inc. manufactures a household fan that sells 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. •Badlands 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...

Badlands, Inc. manufactures a household fan that sells for $20 per unit. All sales are on account, with 40 percent of sales collected in the month of sale and 60 percent collected in the following month. The data that follow were extracted from the company’s accounting records. Badlands maintains a minimum cash balance of $20,000. Total payments in January 20x1 are budgeted at $200,000. A schedule of cash collections for January and February of 20x1 revealed the following receipts for...

Badlands, Inc. manufactures a household fan that sells for $20 per unit. All sales are on account, with 45 percent of sales collected in the month of sale and 55 percent collected in the following month. The data that follow were extracted from the company’s accounting records. Badlands maintains a minimum cash balance of $18,000. Total payments in January 20x1 are budgeted at $215,000. A schedule of cash collections for January and February of 20x1 revealed the following receipts for...

Badlands, Inc. manufactures a household fan that sells for $25 per unit. All sales are on account, with 30 percent of sales collected in the month of sale and 70 percent collected in the following month. The data that follow were extracted from the company’s accounting records. Badlands maintains a minimum cash balance of $20,000. Total payments in January 20x1 are budgeted at $220,000. A schedule of cash collections for January and February of 20x1 revealed the following receipts for...

Badlands, Inc. manufactures a household fan that sells for $20 per unit. All sales are on account, with 45 percent of sales collected in the month of sale and 55 percent collected in the following month. The data that follow were extracted from the company’s accounting records. Badlands maintains a minimum cash balance of $30,000. Total payments in January 20x1 are budgeted at $205,000. A schedule of cash collections for January and February of 20x1 revealed the following receipts for...

Towing Company manufactures and sells a single product for $40 per unit. Variable costs are $30 per unit and fixed costs total $168,000. During 2019, the company sold 26,500 units of this product to customers. In order to improve profitability, the president of Towing Company believes the following changes should be made in 2020: 1. decrease the selling price of the product by 10% 2. automate a portion of the production process which will reduce variable costs by 5% per...

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: 5. The sales manager is convinced that a 10% reduction in the selling price, combined with a $79,000 increase in advertising, would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income...

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Sales $ 1,040,000 Variable expenses 520,000 Contribution margin 520,000 Fixed expenses 180,000 Net operating income $ 340,000 The sales manager is convinced that a 11% reduction in the selling price, combined with a $74,000 increase in advertising, would increase this year's unit sales by...

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales $ 1,000,000 Variable expenses 500,000 Contribution margin 500,000 Fixed expenses 200,000 Net operating income $ 300,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point...

Cash Receipts

From December 31 accounts receivable

From January sales

From February sales

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows Sales $ 1,000,000 Variable expenses 500,000 Contribution margin 500,000 Fixed expenses 160,000 Net operating income $ 340,000 Required: Answer each question independently based on the original data: 5. The sales manager is convinced that a 10% reduction in the selling price, combined with a...

Subjects