Finance Assignment | Top Essay Writing
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- Hasbeen Company completed its inventory count. It arrived at a total inventory value of $200,000. You have been given the information listed below. Discuss how this information affects the reported cost of inventory.
- Has been included in the inventory goods held on consignment for Falls Co., costing $35,000.
- The company did not include in the count purchased goods of $20,000, which were in transit (terms: FOB shipping point).
- The company did not include in the count inventory that had been sold with a cost of $18,000, which was in transit (terms: FOB shipping point).
- Khaled Industries, a defense contractor, is developing a cash budget for October, November, and December.
(i) Khaled’s sales in August and September were $100,000 and $200,000 respectively. Forecasted Sales for October, November, and December are as below: October – $400,000 November – $300,000 December – $200,000
30% of the firm’s sales have been for cash, 50% have been collected after 1 month, and the remaining 20% after 2 months. Bad-debt expenses (uncollectible accounts) have been negligible. In December, Khaled will receive a $30,000 dividend from stock in a subsidiary.
(ii) Khaled has also gathered the relevant information for the development of a cash disbursement schedule. Purchases will represent 70% of sales – 40% will be paid immediately in cash, 60% is paid the month following the purchase. The firm will also expend cash on rent, wages and salaries every month of $52,000.
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