the lineberry golf cart company sold 7,400 golf carts this year at an

QUESTION

the lineberry golf cart company sold 7,400 golf carts this year at an average unit price of 3,000. fifty daysof sales remanied un collected in accounts recivable at the ebn of the year. the firm produced the carts at a 42% cost ratio (cogs/revenue) and had three months of inventory on hand at year e¦
This year Next year Units 7400 7400 x 1.1= 8140 price 3000 3000 x1.05= 3150 revenue 22,200,00 25,641,00 Revenue x cost ratio= COGS Cost ratio 42 .40 COGS 9,324,000 10,256,400 Revenue COGS=GROSS MARGIN GROSS MARGIN 12,876,000 15,384,600¦

(DAYS sales in A/R DIVIDED 360) REVENUE =A/R A/R(50/360) X 22,200,000 3,083,333 2,849,000 INVENTORY COGS (3/12) X 9324,000 2,331,000 2/12 X 10,256,400 =1709400

ANSWER:

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