1.Parthenon, Inc. sells two products, Yo-Yos and Hula Hoops. The sales forecast in units for the first quarter of the coming year is:
|
Yo-Yos
|
Hula Hoops
|
|
January
|
20,000
|
36,000
|
|
February
|
28,000
|
60,000
|
|
March
|
36,000
|
64,000
|
Cash sales are 30% of each product's monthly sales. The remaining sales are credit sales that are collected as follows: 70% in the month of sale, 20% the next month, and 10% in the following month. Unit sale prices are $30 and $20 for Yo-Yos and Hula Hoops, respectively.
Determine the company's cash receipts for March from its current and past sales.
2.Lawson, Inc. is preparing its budget for the second quarter. The following sales data have been forecasted:
|
April
|
May
|
June
|
July
|
August
|
|
Unit sales
|
640
|
720
|
780
|
620
|
660
|
Additional information follows:
|
Inventory on March 31:
|
192 units
|
|
Desired ending inventory each month:
|
30% of next month's sales
|
How many units should be purchased in April, May, and June? How many units should be purchased in the second quarter in total?