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##### TabComp Ltd is a retail distributor for MZB-33 computer hardware-(Answered)

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Question

• TabComp Ltd is a retail distributor for MZB-33 computer hardware and related software and support services. TabComp prepares sales forecasts of which the first six months of 2014 are presented here.
• Cash sales account for 25% of total sales, 30% of total sales are paid by bank credit card and the remaining 45% are on open account. The cash sales and cash from bank credit cards sales are received in the month of sale. Bank credit card sales are subject to a 4% discount. The cash receipts for sales on the open account are 70% in the month following the sale and 28% in the second month after the sale. The remaining accounts receivables are estimated to be uncollectible.
• TabComp?s month end inventory requirements for computer hardware units are 30% of the next month?s sales. TabComp?s purchase price for the computer units is 60% of the selling price.
• TabComp Ltd
• Sales Forecast for first six months of 2014
• Hardware SalesSoftware Sales & SupportTotal revenues
• ????????????????? Units ? ????\$???????????????????????????????????? \$???????????????????????????? ???? \$
• January???? 130???? 390,000?????????????????? ??????? 160,000????????????????????????? 550,000
• February??? 120???? 360,000?????????????????? ??????? 140,000????????????????????????? 500,000
• March??????? 110???? 330,000?????????????????? ??????? 150,000????????????????????????? 480,000
• April?????????? 90?????? 270,000?????????????????? ??????? 130,000????????????????????????? 400,000
• May?????????? 100???? 300,000?????????????????? ??????? 125,000????????????????????????? 425,000
• June????????? 125 ? ? ? ?375,000 ? ? ? ? ? ? ? ? ? ? ? ? ?225,000 ? ? ? ? ? ? ? ? ? ? ? ? 600,000
• Total????????? 675???? 2,025,000??????????????? ??????? 930,000??????????????? ??????? 2,955,000

Required:

1. Calculate the cash that TabComp can expect to collect during April 2014. Show all calculations. ????????

2. TabComp is planning the purchase of MZB-33 computer hardware units for March 2014.

• a. Determine the number of units that will need to be purchased. (2 Marks)

b. Calculate the total costs of this purchase. ???????????????? ????????? ?(2 Marks)

??????????????????????????????????????????????????????? ?????????? ???????????????????? (4 Marks)

3. As part of the annual budget process, TabComp prepares a cash budgert by month for the entire year. Explain why a company such as TabComp prepares a cash budget month by month for the entire year.????????????? ?????????? (2 Marks)

TabComp Ltd is a retail distributor for MZB-33 computer hardware and related software and support services

months of 2014 are presented here.

Cash sales account for 25% of total sales, 30% of total...

Paper#9256261 | Written in 27-Jul-2016

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