Response to the following:
1.) The Hamblen Company has budgeted production for the next five quarters as follows:
2004 2004 2004 2004 2005
Quarter ............... First Second Third Fourth First
Production in units ... 10,000 12,000 16,000 14,000 11,000
Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 4,000 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's raw material needs.
The raw materials inventory at the end of 2004 is expected to be?
2.) The Martin Company had a finished goods inventory of 55,000 units on January 1. It's projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The Martin Company wishes to maintain a desired ending finished goods inventory of 20% of the following months sales.What would be the budgeted production for February?
3.) During December, Johnson company had the following cash information: The ending November cash balance is budgeted to be $40,000. Cash receipts are $840,000, and cash disbursements are $890,000 during December. The company wants to maintain a minimum cash balance of $20,000. What is the minimum cash loan that must be planned to be borrowed from the Bank during December?