Question

1. ABC Company projects the next period sales will be 12,000 units. ABC Company desires ending inventory equal to

20% of the next months’s sales. What is the desired inventory?

2. ABC Company projects the next period sales will be 12,000 units. ABC Company desires ending inventory of 20% of the next month’s sales. If the beginning inventory is 100, and the current month’s sales are 14,000, what is the number of units that will need to be purchased for the current month?

3. ABC Company has sales forecasts of the following: January= $40,000; February = $65,000; March =$52,580. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectable. What are the cash receipts for March?  

Please show work

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