Tidewater distributors is successfully using short-term financing to buy inventory for resale. as sales climb, the managers realize that they must decide what to do with the money. since you are the financial manager, they ask for your advice. you advise them to firsta) repay the short-term obligations out of the sales revenue.
b) use the money to buy a yacht for the managers.
c) increase all employees' wages.
d) enroll all the salespeople in a sales training course.
e) borrow more money.

Down under products, ltd., of australia has budgeted sales of its popular boomerang for the next four months as follows: unit salesapril 74,000may 85,000june 114,000july 92,000the company is now in the process of preparing a production budget for the second quarter. past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. the inventory at the end of march was 7,400 units.required: prepare a production budget by month and in total, for the second quarter.