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Question: Use the following information to answer questions 38 and 39. Try Comp, Inc. is preparing its cas…
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Question: Use the following information to answer questions 38 and 39.  Try Comp, Inc. is preparing its cas...

Show transcribed image text Use the following information to answer questions 38 and 39. Try Comp, Inc. is preparing its cash budget. Cash sales account for 25% of Try Comps total sales, 30% of the total are paid by bank credit card, and the 45% are on open account (Try Comp's charge account). The cash sales and cash from bank credit-card sales are received in the month of the sale. Bank credit-card sales are subject to a 4% deducted at the time of the daily deposit. The cash receipts of sales on open account are 70% in the month following the sale and 28% in the second month after the sale. The remaining accounts receivable are estimated to be uncollectable. Try Comp's month-end inventory requirements are 30% of the next month's sales. A one month lead time is required for delivery from the manufacturer. Thus, orders for inventory is placed on the 25th of each month to assure that they will be in at Try Comp by the first day of the month needed. The inventory is purchased under terms of net 45 (payment in full within 45 days of invoice), measured from the time the units are delivered to Try Comp. Try Comp's purchase price for inventory is 60% of the selling price. Sales forecast for 2018: How much cash can Try Comp expect to collect during April 2018? $429, 400 $439, 600 $449, 100 $452, 350 What is the projected number of units Try Comp can expect to order on January 25, 2018? 46 62 91 104

Use the following information to answer questions 38 and 39. Try Comp, Inc. is preparing its cash budget. Cash sales account for 25% of Try Comps total sales, 30% of the total are paid by bank credit card, and the 45% are on open account (Try Comp's charge account). The cash sales and cash from bank credit-card sales are received in the month of the sale. Bank credit-card sales are subject to a 4% deducted at the time of the daily deposit. The cash receipts of sales on open account are 70% in the month following the sale and 28% in the second month after the sale. The remaining accounts receivable are estimated to be uncollectable. Try Comp's month-end inventory requirements are 30% of the next month's sales. A one month lead time is required for delivery from the manufacturer. Thus, orders for inventory is placed on the 25th of each month to assure that they will be in at Try Comp by the first day of the month needed. The inventory is purchased under terms of net 45 (payment in full within 45 days of invoice), measured from the time the units are delivered to Try Comp. Try Comp's purchase price for inventory is 60% of the selling price. Sales forecast for 2018: How much cash can Try Comp expect to collect during April 2018? $429, 400 $439, 600 $449, 100 $452, 350 What is the projected number of units Try Comp can expect to order on January 25, 2018? 46 62 91 104

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