Mathematics, 05.07.2021 14:00 bryson3307
Lionel sells to two groups of customers – 50% of its sales are to wholesalers and 50% to retailers. All sales to retailers are cash sales. Collections from wholesalers are follows: 75% in the month of sale and 25% in the month following sale. ii) 60% of direct material purchases are paid in cash in the month of purchase, and the balance is paid in the month following the purchase. iii) All other expenses are paid in the month incurred. iv) Manufacturing overhead includes monthly depreciation of $15,000. v) Sales: March, $320,000. vi) Purchases of direct materials: March, $175,000. vii) Other receipts: April – Donation received, $2,000 May – Sale of used office furniture, $4,000. viii) Other disbursements: May – Purchase of Ice Cream Mixer, $10,000. ix) Repays loan: April, $30,000. x) Cash balance on April 1, is expected to be $50,000.
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Lionel sells to two groups of customers – 50% of its sales are to wholesalers and 50% to retailers....
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