Solved

TabComp Inc Cash Sales Account for 25% of TabComp's Total Sales,30% of Related

question 42

Essay

TabComp Inc.is a retail distributor for MZB-33 computer hardware and related software.TabComp prepares annual sales forecasts,of which the first six months of the coming year are presented below:
$\begin{array}{|l|r|r|r|r|} \hline& \text { Hardware units } & \begin{array}{r}\text { Hardware } \\\text { dollars }\end{array} & \text { Software } & \text { Total sales } \\\hline \text { January } & 130 & \$ 390,000 & \$ 160,000 & \$ 550,000 \\\hline \text { February } & 12 \mathrm{q} & 360,000 & 140,000 & 500,000 \\\hline \text { March } & 110 & 330,000 & 150,000 & 480,000 \\\hline \text { Apri1 } & 90 & 270,000 & 130,000 & 400,000 \\\hline \text { May } & 100 & 300,000 & 125,000 & 425,000 \\\hline \text { Tune } & 125 & 375,000 & 225,000 & 600,000\\\hline\end{array}$
Cash sales account for 25% of TabComp's total sales,30% of the total sales are paid by bank credit card,and the remaining 45% are on open account (TabComp's own charge accounts).The cash and bank credit card sale payments are received in the month of the sale.Bank credit card sales are subject to a 4% discount,which is deducted immediately.The cash receipts for sales on open account are 70% in the month following the sale and 28% in the second month following the sale; the remaining are uncollectible.
TabComp's month-end inventory requirements for computer hardware units are 30% of the next month's sales.The units must be ordered two months in advance due to long lead times quoted by the manufacturer.
Required:
A)Calculate the cash that TabComp can expect to collect during April.Show all of your calculations.
B)Determine the number of computer hardware units that should be ordered in January.Show all of your calculations.

Calculate seasonal indices and understand their application in seasonal adjustment.

Understand the role of smoothing constants in exponential smoothing.

Interpret the correlation coefficient and its implications for variable relationships.

Distinguish between trend projection and linear regression in the context of forecasting.

Definitions:

Hong Kong-Based Company

A business entity registered or incorporated in Hong Kong, operating under the legal and regulatory framework of Hong Kong.

Toronto Stock Exchange

Canada's largest stock exchange, known for its high concentration of mining and energy stocks.

OSC

Refers to the Ontario Securities Commission, which is responsible for regulating the securities industry in Ontario, Canada, ensuring fair and transparent markets.

IFRS

International Financial Reporting Standards, a set of accounting rules prescribed by the IASB that aims to make financial statements comparable and transparent globally.