1. If there were 20,000 pounds of raw materials on hand on January 1, 45,000 pounds are desired for inventory at January 31, and 295,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?
2. XYZ Company expects the following sales and collection pattern for the first four months of the year:
|
Month |
Cash Sales |
Credit Sales |
Total Sales |
|
January |
$12,000 |
$23,000 |
$35,000 |
|
February |
$8,000 |
$22,000 |
$30,000 |
|
March |
$9,000 |
$25,000 |
$34,000 |
|
April |
$11,000 |
$28,000 |
$39,000 |
5% of credit sales are collected in the same month
75% of sales are collected in the following month
15% of sales are collected in the second following month
What are the projected cash collections for the month of March?