chapter 7 lecture notes

Markekng admin net operagng cash ow special items

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Unformatted text preview: 436 421 533 610 2,000 x Purchase price per lot $1,000 $1,000 $1,000 $1,000 $1,000 = Purchases $436,000 $421,000 $533,000 $610,000 $2,000,000 Cash Budget – Operating Outflows – Direct Materials Dyes Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Lots used in producKon 2,000 1,960 2,620 3,440 10,020 + Desired ending inventory 196 262 344 125 927 = Total requirements 2,196 2,222 2,964 3,565 10,947 - Beginning inventory 125 196 262 344 927 = Lots to be purchased 2,071 2,026 2,702 3,221 10,020 x Purchase price per lot $500 $500 $500 $500 $500 = Purchases $1,035,500 $1,013,000 $1,351,000 $1,610,500 $5,010,000 Packing boxes Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Lots used in producKon 2,000 1,960 2,620 3,440 10,020 + Desired ending inventory 196 262 344 125 927 = Total requirements 2,196 2,222 2,964 3,565 10,947 - Beginning inventory 100 196 262 344 902 = Lots to be purchased 2,096 2,026 2,702 3,221 10,045 x Purchase price per lot $400 $400 $400 $400 $400 = Purchases $838,400 $810,400 $1,080,800 $1,288,400 $4,018,000 Cash Budget – Operating Outflows – Direct Matls Summary Quarter 1 Quarter 2 Standard grade plasKc $999,000 $963,000 Special grade plasKc $436,...
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