Peachtree's Siding and Window Co Peachtree's Siding and Window Co

question 30

Essay

Peachtree's Siding and Window Co.is a custom home improvement company.All sales are made on account: 30 percent of a month's sales are collected in the month of sale, 60 percent are collected in the month following the sale, and 8 percent are collected in the second month following the sale.Cash on hand on October 1 is estimated to be $32,000.
Merchandise purchases and operating expenses are paid as follows:
$$\begin{array} { | l | l | } \hline \text { In the month during which the merchardise is purchased or the cost is incured } & 80 \% \\\hline \text { In the subsequent month } & 20 \% \\\hline\end{array}$$
Peachtree's Siding and Window Co.'s budgeted income statement for each of the next three months is as follows:
$\begin{array}{lrr}&\text { August } & \text { September }&\text { October }\\ \text {Sales } &\$140,000&\$169,000&\$181,000\\ \text { Cost of goods sold: } &\\ \text { Beginning inventory } &\$16,400&\$28,900&\$25,600\\ \text { Purchases} & \underline{135,300}& \underline{141,500}& \underline{\$149,700}\\ \text {Goods available } &\$151,700&\$170,400&\$175,300\\ \text {Less: End inventory } & \underline{(28,900)}& \underline{(25,600)}& \underline{(21,200)}\\ \text { Cost of goods sold} & \underline{\$122,800}& \underline{\$144,800}& \underline{\$154,100}\\ \text { Gross profit} &\$17,200&\$24,200&\$26,900\\ \text { Operating expenses} & \underline{(11,400)}& \underline{(15,100)}& \underline{(14,300)}\\ \text {Operating income } & \underline{\$5,800}& \underline{\$9,100}& \underline{\$12,600}\\\end{array}$

Prepare a cash budget for the month of October.

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Definitions:

High-risk Positions

Jobs or roles that entail significant potential hazards or dangers, either physically, financially, or legally, often requiring specialized skills or knowledge to mitigate risks.

Production-oriented Leadership

A leadership style focused primarily on efficiency, output, and meeting organizational goals often at the expense of employee relations and satisfaction.

Written Rules

Explicit, documented guidelines that govern behavior and procedures within an organization.

Supervision

The process of directing, monitoring, and guiding individuals or activities to ensure that goals and standards are met.