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(solution) B-21.02 Logan Township acquired its water system from a private

I need the attached questions answered please. I sent this out yesterday but no reply. Please help!

B-21.02 Logan Township acquired its water system from a private company on June 1. No


receivables were acquired with the purchase. Therefore, total accounts receivable on


June 1 had a zero balance.


Logan plans to bill customers in the month following the month of sale, and 70% of the


resulting billings will be collected during the billing month. In the next following month,


90% of the remaining balance should be collectable. The remaining uncollectible


amounts will relate to citizens who have moved away. Such amounts are never


expected to be collected and will be written off.


Water sales during June are estimated at $3,000,000, and expected to increase 30% in


July. August sales will be 10% less than July sales. (a) For each dollar of sales, how much is expected to be collected? (b) Estimate the monthly cash collections for June, July, August, and September. (c) As of the end of August, how much will be the estimated amount of


receivables from which future cash flows are anticipated? Name:


Date: B-21.02 Section: (a) (b) June July August September June July August Total


Receivables (c) Scalia Systems manufactures rugged handheld computers for use in adverse working


environments. Scalia tries to maintain inventory at 40% of the following month's


expected unit sales. Scalia began the year with 8,000 units in stock, based on the


following unit sales projections prepared by the sales manager: January 20,000 February 25,000 March 18,000 April 22,000 Prepare a schedule of planned unit production for January through March. Planned production in units:




Estimated units sold Prepare a direct materials purchasing plan for January, February, and March, based on


the following facts:


Lana Gonzales owns a business that assembles ceiling fan units. Each fan requires one


motor system and four blades. Motors cost $40 each, and blades are $3.50 each. Lana


is able to reliably obtain motors as needed, and does not maintain them in inventory.


However, blades are stocked in inventory sufficient to produce 30% of the following


month's expected production. Planned production is as follows: January 10,000 February 12,000 March 15,000 April 11,000 In accordance with the stocking plan, January's beginning inventory included 12,000


blades. Direct materials purchasing plan:




Scheduled production Raw materials needed:


Motors (1 per unit) Fan blades needed 10,000 February


12,000 March


15,000 Nolan Johnson is CFO for a newly formed furniture manufacturing company. Below is the anticipated


production for the first year of operation, and beyond. Nolan is interested in learning which of the firs


months will require cash outlays of more than $100,000 toward the purchase of lumber. Each unit requires


feet of lumber at $5.80 per board foot. All lumber is purchased in the month prior to its expected use.


purchases are paid for 10% in the month of purchase, 40% in the month following the month of purchase, an


the second month following the month of purchase.


Month Units January 0 February 800 March 500 April 1,200 May 700 June 900 July 300 August 600 September 800 October 1,300 November 400 December 400 January 600 Which months will require cash outlays in excess of the $100,000 amount? Does the production in any give


necessarily correspond to the cash flow for that same month? What are the business implications


observation? ny. Below is the anticipated monthly


d in learning which of the first twelve


of lumber. Each unit requires 20 board


nth prior to its expected use. Lumber


wing the month of purchase, and 50% in oes the production in any given month


re the business implications of your Anticipated cash payments:




Activity Units January 0 February 800 March 500 April 1,200 May 700 June 900 July 300 August 600 September 800 October 1,300 November 400 December 400 January 600 Total Board




(20 per


unit) Total Cost of




($5.80 per


foot) Paid in




(10%) Paid in Month


Relating to


Prior Month




Paid in Month


Relating to


Two Months




(50%) Total The chief financial officer for Cast In Stone concrete products had previously established a


line of credit with a local bank that enables Cast In Stone to borrow 80% of the company's


inventory balance. The company currently has 1,000 units in stock, and is performing "on


budget." The budget anticipated that direct labor cost would be $15 per hour, and factory


overhead is applied to production based on $7.50 per direct labor hour. Each unit requires


2.5 labor hours and 800 pounds of direct material. The direct material costs $0.10 per


pound. Determine the amount of credit available under the borrowing agreement. Amount available under line of credit:


Units Total available under line of credit Per Unit Cost Per Unit


Total Printers Plus is a retailer of printers and ink cartridges. The printers carry a low profit


margin and the ink cartridges a very high margin. Following is an aggregated budgeted


performance plan for 20X5.


Budgeted Performance Report


All Stores


For the Year Ending December 31, 20X5




Printers $ Cartridges 4,500,000


4,500,000 Total sales $ 9,000,000 $ 4,000,000 Less: Variable expenses




Cartridges 1,500,000 Total variable expenses $ 5,500,000 Contribution margin $ 3,500,000 Traceable fixed costs 1,550,000 Location margin $ Common fixed costs 1,950,000


1,400,000 Stores margin $ 550,000 Although total sales met expectations for the year, management is upset that the


targeted margins were not achieved. Following is the "store by store" actual performance


report. Evaluate the detailed data and write a paragraph explaining the loss. If each


store has a positive margin, as shown in the following report, why is management upset? Actual Performance Report


All Stores


For the Year Ending December 31, 20X5


Store A Store B Store C Sales


Printers $ 2,000,000 $ 2,500,000 $ 1,000,000 Cartridges


Total sales 500,000 2,000,000 1,000,000 $ 2,500,000 $ 4,500,000 $ 2,000,000 $ 1,777,778 $ 2,222,222 $ 888,889 Less: Variable expenses




Cartridges 166,667 666,667 333,333 Total variable expenses $ 1,944,444 $ 2,888,889 $ 1,222,222 Contribution margin $ 555,556 $ 1,611,111 $ 777,778 Traceable fixed costs


Location margin 450,000


$ 105,556 600,000


$ 1,011,111 500,000


$ 277,778


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