Question

In: Finance

The Cookie Shop's purchases are equal to 63 percent of the following month's sales. The accounts...

The Cookie Shop's purchases are equal to 63 percent of the following month's sales. The accounts payable period for purchases is 30 days while all other expenditures are paid in the month they are incurred. Assume each month has 30 days. The company has compiled the following information. April May June Sales $ 7,100 $ 7,400 $ 7,800 Other expenses 1,625 1,675 1,925 Interest and taxes 380 390 410 What are the company's total cash disbursements for May?

Solutions

Expert Solution


Related Solutions

The firm's inventory policy is to have ending inventory equal to 10% of next month's sales.
The firm's inventory policy is to have ending inventory equal to 10% of next month's sales.Fill in the missing numbers.FebruaryMarchAprilEnding inventory5,000Beginning inventoryBudgeted sales12,00013,00019,000Budgeted production(If you get stuck on the beginning inventory for February: it is equal to the ending inventory for January, which you can compute with the available data on February sales)
The ending finished goods inventory should equal 30% of the following month's sales. The budgeted required production for February is closest to:
Cardel Corporation makes one product. Budgeted unit sales are shown below:Budgeted unit sales January 7,300 February 8,600 March 10,100 April 13,600  The ending finished goods inventory should equal 30% of the following month's sales. The budgeted required production for February is closest to:A. 11,630 unitsB. 14,210 unitsC. 9,050 unitsD. 8,600 units
The Sepulcro Corporation’s purchases from suppliers in a quarter are equal to 65 percent of the...
The Sepulcro Corporation’s purchases from suppliers in a quarter are equal to 65 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $118 per quarter. No capital expenditures are planned. Projected quarterly sales are:    Q1 Q2 Q3 Q4 Sales $1,620 $1,770 $1,830 $2,070    Sales for the first quarter of the following year are projected at $1,740.    Calculate the...
The Thakor Corporation’s purchases from suppliers in a quarter are equal to 60 percent of the...
The Thakor Corporation’s purchases from suppliers in a quarter are equal to 60 percent of the next quarter’s forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $85 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 Q4 Sales $ 2,190 $ 2,490 $ 2,190 $ 1,890 Sales for the first quarter of the following year are projected at $2,520. Calculate...
The Thakor Corporation’s purchases from suppliers in a quarter are equal to 60 percent of the...
The Thakor Corporation’s purchases from suppliers in a quarter are equal to 60 percent of the next quarter’s forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $85 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 Q4 Sales $ 2,190 $ 2,490 $ 2,190 $ 1,890 Sales for the first quarter of the following year are projected at $2,520. Calculate...
The MacDonald Corporation’s purchases from suppliers in a quarter are equal to 70 percent of the...
The MacDonald Corporation’s purchases from suppliers in a quarter are equal to 70 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $117 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 Q4   Sales $1,590 $1,740 $1,800 $2,040 Sales for the first quarter of the following year are projected at $1,710. Calculate the company’s cash outlays...
1 The purchases of items from foreigners will be equal to the sales of items to...
1 The purchases of items from foreigners will be equal to the sales of items to foreigners. True False 2 The following chart indicates a hypothetical newspaper quotation of the exchange rates of various currencies. U.S. Dollar Equivalent February 1 February 2 British pound 1.99 1.975 Canadian dollar 0.645 0.86 On February 2, the U.S. dollar (appreciated /depreciated) against the British pound. On February 2, the U.S. dollar (appreciated /depreciated)   against the Canadian dollar. 3 Suppose the exchange rate between...
The Torrey Pine Corporation’s purchases from suppliers in a quarter are equal to 60 percent of...
The Torrey Pine Corporation’s purchases from suppliers in a quarter are equal to 60 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $85 per quarter. No capital expenditures are planned. Projected quarterly sales are shown here:   Q1   Q2   Q3   Q4   Sales $ 2,190 $ 2,490 $ 2,190 $ 1,890 Sales for the first quarter of the following year are projected...
The Torrey Pine Corporation’s purchases from suppliers in a quarter are equal to 75 percent of...
The Torrey Pine Corporation’s purchases from suppliers in a quarter are equal to 75 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $75 per quarter. No capital expenditures are planned. Projected quarterly sales are shown here:   Q1   Q2   Q3   Q4   Sales $ 2,250 $ 2,550 $ 2,250 $ 1,950 Sales for the first quarter of the following year are projected...
The Torrey Pine Corporation’s purchases from suppliers in a quarter are equal to 70 percent of...
The Torrey Pine Corporation’s purchases from suppliers in a quarter are equal to 70 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 15 percent of sales, and interest and dividends are $95 per quarter. No capital expenditures are planned. Projected quarterly sales are shown here:   Q1   Q2   Q3   Q4   Sales $ 2,130 $ 2,430 $ 2,130 $ 1,830 Sales for the first quarter of the following year are projected...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT