VinniCom Inc. is a retail distributor for SAR-33 computer hardware and related software. VinniCom prepares annual sales forecasts of which the first...

$  600,000

Cash sales account for 25% of VinniCom's total sales, 30% of the total sales are paid by bank credit card, and the remaining 45% are on open account (VinniCom'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 four percent 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.

VinniCom'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 VinniCom 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.