TabComp Inc

question 87

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:
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.

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Definitions:

World Trade

The exchange of goods and services across international borders, influenced by global agreements, tariffs, and economic policies.

International Trade Partner

A country or entity with which another country exchanges goods and services across international borders.

Currency Imbalances

Situations arising from disproportionate levels of supply and demand in different countries, leading to destabilizing fluctuations in exchange rates.

World Trade Flows

The movement or exchange of goods, services, and capital across international borders, influenced by global supply and demand dynamics.