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ELEN [110]
2 years ago
12

Sun​ Industries' budgeted sales and direct materials purchases are as​ follows: Budgeted Sales Budgeted DM Purchases January ​$2

00,000 ​$30,000 February ​$220,000 ​$36,000 March ​$250,000 ​$38,000 Sales are​ 30% cash and​ 70% credit. Credit sales are collected in the month following sale. Direct materials purchases are paid​ 40% cash in the month of purchase and​ 60% in the month following purchase. What are budgeted cash payments for DM purchases for the month of February​?
Business
1 answer:
maria [59]2 years ago
8 0

Answer:

Total cash payments in February : $32400

Explanation:

Purchases on cash are generally collected immediately, hence if the purchase occurs in February, it would be collected in February itself. Purchases on credit on the other hand, is where the debtor can pay for the goods or services on a later date. In this case, part is paid at the time of purchase and another part is paid in the next month after the sale.

According to the information, in February $36,000 worth of purchase were made. Of this, 40% would be paid in February itself. 60% in March. At the same time, the business would also have to pay for the remainder of the $30,000 of purchases made in January in February. Hence, total cash payments in February are:

$36000 x 40% = $14400

$30000 x 60% = $18000

Total cash payments in February: $14400 + $18000 = $32400

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Merle Industries had been selling its product for $24 per unit, but recently lowered the selling price to $17 per unit. The comp
Lana71 [14]

Answer:

The company’s inventory be reported on the balance sheet as $3,150.

Explanation:

GAAP and IFRS requires that the inventory of the company should be recorded as Lower cost and Net realizable value of the inventory.

According to given data

Available Inventory = 210 units

Cost of Inventory = 210 units x $20 = $4,200

Net realizable value is the value of the inventory which can be recovered on the immediate sale. the current market value of the inventory is $15.

So,

Net realizable value is = 2,100 units x $15 = $3,150

As the Net realizable value is lower than the cost of the inventory, $3,150 should be reported as inventory on the balance sheet.

7 0
2 years ago
Vaughn Manufacturing has fixed costs of $30000 per year. Its warehouse sells wine with variable costs of 90% of its unit selling
oksian1 [2.3K]

Answer:

$300,000

Explanation:

Calculation for How much in sales does Vaughn need to break even per year

Using this formula

Sales needed to break even=Fixed cost/(1-Unit selling price Variable costs)

Let plug in the formula

Sales needed to break even=$30,000 / (1 -.9)

Sales needed to break even=$30,000 / (0.1)

Sales needed to break even=$300,000

Therefore How much in sales does Vaughn need to break even per year will be $300,000

8 0
3 years ago
Your career goals might help determine the postsecondary educational institute you attend.
Phantasy [73]

Answer:

true

Explanation:

What you do now or what your planning on doing can always determines what you can possibly do next. But you have to make sure your not doing or posting anything bad on the internet or else they won't hire you.

7 0
3 years ago
Which statement is false about liquidity?
BARSIC [14]

Answer:

Option D. Both A and B

Explanation:

The reason is that the investment that are readily convertible to cash are less risk and as a result the investors are compensated with lower returns and vice versa. So the only statement that is not false statement is option C and the statement A and B are False.

8 0
2 years ago
Due to ____, market forces should realign the cross exchange rate between two foreign currencies based on the spot exchange rate
aksik [14]

Answer:

Triangular Arbitrage

Explanation:

Arbitrage is the financial practice in which the prices of two or more different markets are taken advantage of to make profit as a result of tthe imbalance in the prices of the markets.

Also known as 3 point or cross currency arbitrage, Triangular arbitrage is the taking advantage/ exploiting of the pricing differences between 3 currencies on the foreign exchange market.

Simply put, triangular arbitrage is a situation in which the exchange rates between 3 currencies are not the same.

Triangular arbitrage is difficult to come by as it requires very advanced computer systems to detect and take advantage of.

I hope this helps.

6 0
2 years ago
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