Ask Question
BusinessBusiness
14 June, 16:23

The following planned figures have been developed by a buyer for next month: sales = $25,000; reductions = $1,500; BOM stock = $80,000; EOM stock = $88,000; commitments already made for delivery during next month = $5,600. What are planned purchases and OTB for the buyer?

+4
Answers (1)
  1. 14 June, 16:42
    0
    The planned purchases are given as $34,500 while the value of OTB is $28,900

    Explanation:

    The Planned purchases is given as

    Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventory = Planned Purchases

    So here the planned sales are 25000

    The planned Reductions are 1500

    The End of Month inventory is 88000

    The Beginning of Month Inventory is 80000 So the value is given as

    25000+1500+88000-80000 = Planned Purchases

    Planned Purchases = 34500

    The OTB is given as

    OTB=Planned Purchases-Commitment

    OTB=34500-5600

    OTB=28900
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The following planned figures have been developed by a buyer for next month: sales = $25,000; reductions = $1,500; BOM stock = $80,000; EOM ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
How do Human Development Index (HDI) and gross domestic product (GDP) compare in what they measure? HDI and GDP both measure economic development only. HDI measures human development, while GDP measures economic development.
Answers (2)
By providing and communicating information, the financial system Group of answer choices A. relieves individual savers from the necessity of searching out individual borrowers. B. eliminates the risk in investing in the stock market. C.
Answers (1)
On July 1, 2014, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,000 of 20-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $42,309,236.
Answers (1)
Tyson is a 25% partner in the KT Partnership. On January 1, KT makes a proportionate distribution of $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and land with a fair value of $8,000 (inside basis of $12,000) to Tyson.
Answers (1)
Explain why and how a reasonably competitive market is always moving toward equilibrium.
Answers (1)
New Questions in Business
Montana Company was authorized to issue 200,000 shares of common stock. The company had issued 50,000 shares of stock when it purchased 10,000 shares of treasury stock.
Answers (1)
The following items caused the only differences between pretax financial income and taxable income. 1.
Answers (1)
Which of the following characteristics would lead the auditor to assess control risk at a higher level? a. It is difficult for the auditor to determine or gain access to the organization or individuals who own and/or control the entity. b.
Answers (1)
The reason for the Fed being set up as an independent agency of government is to:
Answers (1)
Headings in reports that describe the content of the section and may even give a conclusion about the section are called:
Answers (1)
Home » Business » The following planned figures have been developed by a buyer for next month: sales = $25,000; reductions = $1,500; BOM stock = $80,000; EOM stock = $88,000; commitments already made for delivery during next month = $5,600.
Sign Up Forgot Password?