The Hurley Company - Solution
a)
November
December
January
February
March
Needs:
Sales (units)
6,700
9,800
6,200
8,900
6,600
2,940
1,860
2,670
1,980
2,130
2,010
2,940
1,860
2,670
1,980
Actual or Budgeted Purchases (units)
7,630
8,720
7,010
8,210
6,750
b)
Cash Disbursements:
Current Month Purchases
$4,907
$5,747
$4,725
Previous Month Purchases
9,156
7,361
8,621
$14,063
$13,108
$13,346
Accounts payable, March 31
$7,088
^ i.e. how much we will still owe our suppliers after March 31
c)
$26,800
$39,200
$24,800
$35,600
$26,400
Cash Collections:
$4,960.0
$4,931
$7,120.0
$5,280.0
November Sales
$
12,544.00
December Sales
$
6,944.00 $
7,212.80
January Sales
$
7,936.00 $
4,563.20
February Sales
$
9,968.00 $
11,392.00
March Sales
$
7,392.00
$0
$0
$24,419
$32,237
$28,627
v i.e. how much our clients will still owe us after March 31
Accounts Receivable, March 31
February Sales
$6,550
March Sales
13,306
$19,856
Ending Inventory
(units)
(= 30% of M+1)
Less: Beginning Inventory (units)
(= 30% of M)
Sales
($4 per unit)
Cash Sales
(=20% sales)
