BUS-2003 Study Guide - Midterm Guide: Computer Hardware, Budget, Kilogram
Document Summary
Instructions: please answer the following questions on the examination test sheets. If you need more room, please use the back of the pages. 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.