TabComp Inc

question 69

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,28% in the second month following the sale,and 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:

Quantum Meruit

“As much as he has earned.” A quasi-contractual remedy that permits a person to recover a reasonable price for services and/or materials requested, where no price is established when the request is made.

Specific Performance

A court order requiring a party to fulfill their obligations under a contract, rather than providing a financial compensation for failing to fulfill it.

Opera Singer

A performer, usually professionally trained, who specializes in singing classical music compositions in operas.

Rembrandt Drawing

An artwork rendered in pencil, ink, or another medium by Rembrandt van Rijn, a renowned Dutch artist known for his paintings and drawings.