exclusive franchise on the distribution of the necklaces, and sales have grown so rapidly over
the past few years that it has become necessary to add new members to the managemen
company has experienced a cash shortage. You have been given responsibility for all planning
starting April You are anxious to make a favourable impression on the president and hanths,
Theled the information below.
The necklaces are sold to retailers for $ each. Recent and forecasted sales in units are as follows:
The large buildup in sales before and during May is due to Mother's Day. Ending inventories should be equal to f the next month's sales in units.
The necklaces cost the company $ each. Purchases are paid for as follows: in the month of purcese
no discount, and payable within days. The company has found, however, that only of a
month's sales are collected by monthend. An additional is collected in the following
month, and the remaining is collected in the second month following sale. Bad debts have been negligible.
The company's monthly selling and administrative expenses are given below:
Variable:
q:
A schedule of expected cash disbursements for merchandise pruchases, by month and in total.
KNOCKOFFS UNLIMITED
April purchases
May purchases
June purchases
