Solve problem

    1. Problem #5, p. 109

    Cyber security Systems had sales of 3,000 units at $50 per unit last year. The marketing manager projects a 20 percent increase in unit volune sales this year with a 10 percent price increase. Returned merchandise will represent 6 percent of total sales. What is your dollar sales projection for this year.

    2. Problem #9, p. 109

    Delsing Plumbing Company has begining inventory of 14,000 units, will sell 50,000 units for the month, and desires to reduce ending inventory to 40 percent of begining inventory. How many units should Delsing produce?

    3. At the end of January, Higgins Data Systems had an inventory of 600 units, which cost $16 per unit to produce. During February the company produced 850 units at a cost of $19 per unit. If the firm sold 1,100 in February, what was its cost of goods sold (assume LIFO inventory accounting)?

    4.. Victoria’s Apparel has forecast credits sales for the fourth quarter of the year as:
    September (actual) ……………… $50,000
    Fourth Quarter
    October …………………………………. $40,000
    November ……………………………… $35,000
    December ………………………………..$60,000
    Experience has shown that 20 percent of sales receipts are collected in the month of sale, 70 percent in the following month, and 10 percent are never collected. Prepare a schedule of cash receipts for Victoria’s Apparel covering the fourth quarter (October through December).

    5. The Manning Company has financial statements as shown below, which are representative of the company’s historical average. The firm is expecting a 20 percent increase in sales next year, and management is concerned about the company’s need for external funds. The increase is sale is expected to be carried out without any expansion of fixed assets, but rather through more efficient asset utilization. In the existing store. Among liabilities, only current liabilities vary directly with sales. Using the percent-of-sales method, determine whether the company has external financing needs, or a surplus of funds.
    Income Statement
    Sales $200,000
    Expenses 158,000
    Earnings before interest and taxes $42,000
    Interest 7,000
    Earnings before taxes $35,000
    Taxes $15,000
    Earnings after taxes $20,000
    Dividends $6,000

    Balance Sheet
    Assets
    Cash $5,000
    Accounts receivable 40,000
    Inventory 75,000
    Current assets $120,000
    Fixed assets 80,000
    Total assets 200,000

    Liabilities and Stockholders’ Equity
    Accounts payable 25,000
    Accrued wages 1,000
    Accrued taxes 2,000
    Current liabilities 28,000
    Notes payable 7,000
    Long-term debt 15,000
    Common Stock 120,000
    Retained earnings 30,000
    Total liabilities and stockholders’ equity 200,000

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