Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Hinrich Entertainment distributes a DVD which sell for $12 per unit. Hinrich pays $7 per unit to buy the product. Selling costs of $1 per unit is incurred to deliver the product to the customer. This is paid in cash when the product is sold. Additionally, Hinrich has $50,000 per month in fixed and selling and administrative expenses (including $3,000 in depreciation), which are paid half in the month incurred and half in next month. It is Hinrich policy to maintain an inventory at the end of each month equal to 20% of the next months projected cost of sales. Hinrich makes 30% of sales in cash, and rest are on credit. Credit sales are collected in the month after the sale. Budgeted monthly sales in units and dollars for the first three months of 2008 are as follows:

January = 20,000 units
February= 22,000 units
March= 26,000 units
April=28,000
May=40,000

Answer the following problems:

1. What amount of purchases of inventory (at cost) will be required in February?

2. What will total collections be in February?

3. What will Accounts Receivable be at the end of February?

4. What will the cash payment for selling and administrative expenses be in February including fixed and variable cash expenses?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947814

Have any Question? 


Related Questions in Accounting Basics

Assume the demand for a companys drug wozac during the

Assume the demand for a company's drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost $16x. Each ...

Essay objectivethe objective of this case study is to

Essay Objective: The objective of this case study is to understand Australian Conceptual Framework in accounting standard setting and in business practices. Discussions: You should select a company listed on the Australi ...

Big alrsquos pizza inc a new subsidiary of big alrsquos

Big Al’s Pizza, Inc., a new subsidiary of Big Al’s Pizza Emporium, has been established to produce partially baked, flash-frozen, 16-inch meat pizzas to be sold wholesale to grocery and convenience stores and school cafe ...

Accounting information systems assignment-the processes of

ACCOUNTING INFORMATION SYSTEMS ASSIGNMENT- The processes of selecting an AIS/ERP to make informed decision for investment in accounting software. Assignment Scenario- B Bakery is a family owned firm with around 70 employ ...

Imagine you are a member of the project approval committee

Imagine you are a member of the project approval committee. An ambitious young manager in the marketing department is well connected with the top management team in your company. He catches you in the hall and mentions t ...

Accounting theory and current issuesassignment

ACCOUNTING THEORY AND CURRENT ISSUES ASSIGNMENT QUESTION Bio-sustainable Feeds (BSF) Ltd., an Australian bio-research firm listed on the Australian Stock Exchange (ASX), has engaged research on sustainable aqua-culture f ...

What characteristics must the convertible bonds display in

What characteristics must the convertible bonds display in order to justify the accounting treatment followed on initial recognition?

Topic ethics in auditing practiceyour assignment should

Topic: "Ethics in auditing practice" Your assignment should answer the following questions: 1. Provide a brief overview of the nature of the auditing/ethical issue/s involved with Ethics in auditing practice. 2. How does ...

Accounting papermany companies use leases to acquire higher

Accounting Paper Many companies use leases to acquire higher priced assets. Leasing is an important activity for many entities. Presently some leases are capitalized and some are treated as operating leases. Opponents of ...

Question - present arguments in support of a mnc favoring a

Question - Present arguments in support of a MNC favoring a debt-intensive capital structure. Present arguments in support of a MNC favoring an equity-intensive capital structure.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate