Trish Morrow Owns and Operates Yummy Bakery Which Sells a Wide

question 133

Essay

Trish Morrow owns and operates Yummy Bakery which sells a wide variety of cupcakes.She has compiled the following data and information in order to put together a cash budget for September and October.
· Budgeted sales for September are 65,000 cupcakes and 98,000 in October.Each cupcake sells for $3.50.
· On average 60 percent are cash sales and 40 percent are done on account.
· The company expects to collect 75 percent of credit sales in the month of the sale and 20 percent in the month after the sale.
· All necessary raw materials are purchased on account.Purchases are paid 85 percent in the month of the purchase and 15 percent in the following month.Purchases for September are estimated to be $200,000 and $290,000 in October.
· Monthly expenses include:
o Wages $10,000
o Rent $4,000
o Utilities $3,500
o Insurance $2,500
o Advertising $2,290
· Cash balance on September 1^st was $6,000.
· The company has a policy to maintain a minimum cash balance of $5,000.If necessary the company will borrow to meet its short-term needs.All borrowing is done at the beginning of the month and all payments on principal and interest are made at the end of the next month.The annual interest rate is 7%.The company must borrow in multiples of $1,000.
· August sales were 43,000 cupcakes and raw materials purchased equal $230,000.
Prepare a cash budget for September and October.

Understand how performance appraisals can influence pay reviews and organizational policies.

Recognize the importance of fairness and accuracy in performance appraisals.

Understand the characteristics of effective performance appraisal measures.

Recognize different types of performance appraisal methods and their definitions.

---

Definitions:

Interproduct Competition

Interproduct Competition refers to the competition between different products that serve similar purposes, encouraging diversity and improvement in the market.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing for competition based on other factors than price.

Economies of Scale

The financial advantages gained by enterprises from their operational size, where the per-unit cost decreases as the operation size increases.

Unit Cost

The cost incurred to produce, manufacture, or acquire one unit of a product or service.