Chapter9Solution - Excel Templates Chapter 9 Student Name...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Excel Templates Chapter 9 Student Name: <Type your name here> Class: <Type your class here>
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Case 9-26 Given Data: FORMALWEAR SALES COMPANY Selling price per tie $8 Recent and forecast sales: January (actual) 20,000 February (actual) 24,000 March (actual) 28,000 April 35,000 May 45,000 June 60,000 July 40,000 August 36,000 September 32,000 Desired ending inventories (percentage 90% of next month's sales) Cost per tie $5 Purchases paid as follows: In month of purchase 50% In following month 50% Collection on sales: Sales collected current month 25% Sales collected following month 50% Sales collected 2nd month following 25% Monthly operating expenses: Variable: Sales commissions per tie $1 Fixed: Wages and salaries $22,000 Utilities $14,000 Insurance $1,200 (non-cash) Depreciation $1,500 (non-cash) Miscellaneous $3,000 Land purchased in May $25,000 Dividends declared each quarter $12,000 (payable first month of following quarter)
Background image of page 2
Balance sheet at March 31: Assets Cash $14,000 Accounts receivable* 216,000 Inventory** 157,500 Prepaid insurance 14,400 Fixed assets, net of depreciation 172,700 Total assets $574,600 Liabilities and Shareholders' Equity Accounts payable $85,750
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/19/2010 for the course ACCOUNTING 341 taught by Professor Ken during the Spring '10 term at University of Guelph - Humber.

Page1 / 6

Chapter9Solution - Excel Templates Chapter 9 Student Name...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online