เลขทะเบียน......................ชื่อ-สกุล...................................................
Assingment 7 (1/58)
1. Santorini Corporation has experienced a number of out-of-stock situations with respect to its
finished-goods inventories. Inventory at the end of May, for example, was only 50 units—an all-time
low. Management desires to implement a policy whereby finished-goods inventory is 70% of the
following month's sales. Budgeted sales for June, July, and August are expected to be 5,000 units,
5,600 units, and 5,500 units, respectively.
Required:
Determine the number of units that Santorini must produce in June and July.
Answer:
2. Bentson Corporation, a wholesaler, provided the following information:
Customers pay 60% of their balances in the month of sale, 30% in the month following sale, and
10% in the second month following sale. The company pays all invoices in the month following
purchase and takes advantage of a 3% discount on all amounts due. Cash payments for operating
expenses in May will be $119,500; Bentson's cash balance on May 1 was $127,800.
Required:
Determine the following:
A. Expected cash collections during May.
B. Expected cash disbursements during May.
C. Expected cash balance on May 31.
Answer: