ACCT 202 Lecture Notes - Lecture 23: Lemonade, Accounts Payable, Accounts Receivable
Document Summary
Malarie has developed a line of frozen lemonade in convenient 1-cup sized cans, which she sells to other little kids who want to set up lemonade stands. Her projected sales for the upcoming quarter are as follows: In addition, she estimates july sales of 2,000 cans. The following information is available: the sales price is estimated to be per cup (can actually). She collects 70% of her sales in cash, and collects the remaining 30% (accounts receivable) in the month following: malarie has developed the following standards for the production of one glass-can of lemonade: per hour: malarie wishes to maintain safety stock of completed lemonades only. All cans of lemonades are finished right after they are started and, therefore, there is never any work-in-process inventory: for the completed lemonades, she maintains 20% of next month"s estimated sales. per month and incurs per month of other operating expenses (selling and administrative in nature).
