9BP Vitale Hair Spray had sales of 1... [FREE SOLUTION]

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Foundations Of Financial Management

Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen

Business Studies

16th Edition 路 768 pages

ISBN: 9781259277160

Chapter 2: 9BP (page 114)

Vitale Hair Spray had sales of 13,000 units in March. A 70 percent increase is expected in April. The company will maintain 30 percent of expected unit sales for April in ending inventory. Beginning inventory for April was 650 units. How many units should the company produce in April?

Short Answer

Expert verified

The number of units should be produced by the company for April is 28,080.

Step by step solution

Increment in sales unit

$\begin{array}{rcl} Increment in sales unit & = & Sales unit of March 脳 Increment percentage \\ = & 13, 000 脳 70 % \\ = & 9, 100 \end{array}$

Expected sales units of april

$\begin{array}{rcl} Expected sales unit & = & Sales unit of march + Increased unit \\ = & 13, 000 + 9, 100 \\ = & 22, 100 \end{array}$

Year ending inventory of april

$\begin{array}{rcl} Year ending inventory & = & Expected sales units of april 脳 Percentage of ending inventory \\ = & 22, 100 脳 30 % \\ = & 6, 630 \end{array}$

Number of units to be produced

$\begin{array}{rcl} Number of units produced & = & Sales units + Ending inventory - Opening units \\ = & 22, 100 + 6, 630 - 650 \\ = & 28, 080 \end{array}$

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Times mirror and glass company
Sales	\)126,000
Less: Cost of goods sold	93,000
Gross profit	\(33,000
Less: selling and administrative expenses	11,000
Lease Expenses	4,000
Operating profit*	\)18,000
Less: Interest expenses	3,000
Earning before taxes	\(15,000
Less: Taxes (30%)	4,500
Earning after taxes	\)10,500

Cash	\)163,000
Accounts receivable	889,000
Inventory	411,000
New plant and equipment	520,000
Total assets	$1,983,000

Increase in accounts receivable	Decrease in prepaid expenses
Increase in notes payable	Increase in inventory
Depreciation expense	Dividend payment
Increase in investment	Increase in accrued expenses
Decrease in account payable

91影视

Vitale Hair Spray had sales of 13,000 units in March. A 70 percent increase is expected in April. The company will maintain 30 percent of expected unit sales for April in ending inventory. Beginning inventory for April was 650 units. How many units should the company produce in April?

Short Answer

Step by step solution

Increment in sales unit

Expected sales units of april

Year ending inventory of april

Number of units to be produced

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