J. Lo’s Clothiers has forecast credit sales for the fourth quarter of the year. Experience has shown that 30 percent of sales are collected in the month of sale, 60 percent are collected in the following month, and 10 percent are never collected. Prepare a schedule of cash receipts for J. Lo’s Clothiers covering the fourth quarter (October through December).

September (actual)	$\$70,000$
Fourth Quarter
October	$\$60,000$
November	$55,000$
December	$80,000$

The Manning Company has financial statements as shown next, which are representative of the company’s historical average. The firm is expecting a 35 percent increase in sales next year, and management is concerned about the company’s need for external funds. The increase in sales 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. (Hint: A profit margin and payout ratio must be found from the income statement.)

Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June,$65,000 in July, and $90,000 in August?

On December 31 of last year, Wolfson Corporation had in inventory 450 units of its product, which cost $22 per unit to produce. During January, the company produced 850 units at a cost of$25 per unit. Assuming that Wolfson Corporation sold 800 units in January, what was the cost of goods sold (assume FIFO inventory accounting)?

The Bradley Corporation produces a product with the following costs as of July 1, 20X1:

Beginning inventory at these costs on July 1 was 3,250 units. From July 1 to December 1, 20X1, Bradley produced 12,500 units. These units had a material cost of $5, labor of$4, and overhead of $5 per unit. Bradley uses LIFO inventory accounting. Assuming that Bradley sold 14,000 units during the last six months of the year at$19 each, what is its gross profit? What is the value of ending inventory?

Vitale Hair Spray had sales of 13,000 units in March. A 70 percent increase is expected in April. The company will maintain 30 percent of expected unit sales for April in ending inventory. Beginning inventory for April was 650 units. How many units should the company produce in April?

Delsing Plumbing Company has beginning inventory of 16,500 units, will sell 55,000 units for the month, and desires to reduce ending inventory to 25 percent of beginning inventory. How many units should Delsing produce?

The Alliance Corp. expects to sell the following number of units of copper cables at the prices indicated, under three different scenarios in the economy. The probability of each outcome is indicated. What is the expected value of the total sales projection?

Sales for Ross Pro’s Sports Equipment are expected to be 4,800 units for the coming month. The company likes to maintain 10 percent of unit sales for each month in ending inventory. Beginning inventory is 300 units. How many units should the firm produce for the coming month?

Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1:

Material $4

Labor$2

Overhead $1

Beginning inventory at these costs on July 1 was 8,800 units.

From July 1 to December 1, Convex produced 21,500 units.

These units had a material cost of$9 per unit. The costs for labor and overhead were the same.

Convex uses FIFO inventory accounting.

Assuming that Convex sold 23,500 units during the last six months of the year at $18 each, what is the value of ending inventory?

Dodge Ball Bearings had sales of 15,000 units at $45 per unit last year. The marketing manager projects a 30 percent increase in unit volume sales this year with a 20 percent price decrease (due to a price reduction by a competitor). Returned merchandise will represent 8 percent of total sales. What is your net dollar sales projection for this year?

Ultravision Inc. anticipates sales of $290,000 from January through April. Materials will represent 50 percent of sales, and because of level of production, material purchases will be equal for each month during the four months of January, February, March, and April. Materials are paid for one month after the month purchased. Materials purchased in December of last year were$25,000 (half of $50,000 in sales). Labor costs for each of the four months are slightly different due to a provision in the labor contract in which bonuses are paid in February and April. Fixed overhead is$11,000 per month. Prepare a schedule of cash payments for January through April. Here are the labor figures:

Galehouse Gas Stations Inc. expects sales to increase from $1,550,000 to$1,750,000 next year. Galehouse believes that net assets (Assets 2 Liabilities) will represent 50 percent of sales. His firm has an 8 percent return on sales and pays 45 percent of profits out as dividends. What effect will this growth have on funds?

Refer to the following financial statements for Crosby Corporation: Prepare a statement of cash flows for the Crosby Corporation using the general procedures indicated in the table.