Crane Cleaners markets its carpet shampooer primarily to new homeowners, suggesting that it will help...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Crane Cleaners markets its carpet shampooer primarily to new homeowners, suggesting that it will help their carpet last longer. Most customers who buy the products agree and are eager to put the new equipment to work. Approximately 3% of customers have a change of heart, however, and return it within the same month of purchase for a full refund. Crane sells its shampooers for $143 each, while Crane's supplier charges the company $120 per unit. December sales are expected to be 260 units, and January sales are expected to be 285 units. Crane is fortunate enough to maintain adequate cash, so it takes advantage of a 2% discount by paying within 10 days of the purchase; Crane makes its purchases at the beginning of each month. Ending inventory is maintained at 20% of the next month's sales. Determine Crane's budgeted cash payments for purchases in December. (Round answer to 2 decimal places, e.g. 5,125.36.) Budgeted cash payments for purchases $
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Crane Cleaners markets its carpet shampooer primarily to new homeowners, suggesting that it will help their carpet last longer. Most customers who buy the products agree and are eager to put the new equipment to work. Approximately 3% of customers have a change of heart, however, and return it within the same month of purchase for a full refund. Crane sells its shampooers for $143 each, while Crane's supplier charges the company $120 per unit. December sales are expected to be 260 units, and January sales are expected to be 285 units. Crane is fortunate enough to maintain adequate cash, so it takes advantage of a 2% discount by paying within 10 days of the purchase; Crane makes its purchases at the beginning of each month. Ending inventory is maintained at 20% of the next month's sales. Determine Crane's budgeted cash payments for purchases in December. (Round answer to 2 decimal places, e.g. 5,125.36.) Budgeted cash payments for purchases $ 