Question

Jina begins to make longer term plans and negotiates a deal with a farmer who owns a ‘pick-your-own’ fruit business. The farmer will supply Jina with 4 weeks’ worth of strawberries at a time, which will be frozen, and Jina will get 2 weeks’ credit. The supermarket also wants to trade on credit and expects 4 weeks’ credit from Jina. Taking into account this information, Jina now needs you to prepare a statement of financial position, statement of cash flows and income statement after a further 6 weeks’ production (2,400 jars).

146

likes
730 views

Answer to a math question Jina begins to make longer term plans and negotiates a deal with a farmer who owns a ‘pick-your-own’ fruit business. The farmer will supply Jina with 4 weeks’ worth of strawberries at a time, which will be frozen, and Jina will get 2 weeks’ credit. The supermarket also wants to trade on credit and expects 4 weeks’ credit from Jina. Taking into account this information, Jina now needs you to prepare a statement of financial position, statement of cash flows and income statement after a further 6 weeks’ production (2,400 jars).

Expert avatar
Sigrid
4.5
116 Answers
To prepare the financial statements, we need to calculate the inventory, accounts payable, accounts receivable, and cash flows for the given scenario.

Step 1: Inventory Calculation
Jina is buying strawberries from the farmer 4 weeks at a time. Since she needs 6 weeks' production, she will have two batches of inventory: one batch for the first 4 weeks and another batch for the remaining 2 weeks.
Let's calculate the inventory for each batch:

Inventory for the first 4 weeks:
Given that Jina produces 2,400 jars in 6 weeks and gets 4 weeks' worth of strawberries at a time, we can calculate the inventory for the first 4 weeks as:
\text{Inventory}_{\text{4 weeks}} = \frac{4}{6} \times 2400 = 1600 \text{ jars}

Inventory for the remaining 2 weeks:
Since Jina receives strawberries from the farmer in 4-week batches, she would already have inventory for the remaining 2 weeks. Therefore, the inventory for the remaining 2 weeks is:
\text{Inventory}_{\text{2 weeks}} = \frac{2}{6} \times 2400 = 800 \text{ jars}

Step 2: Accounts Payable Calculation
The farmer supplies Jina with 4 weeks' worth of strawberries at a time, and Jina gets 2 weeks' credit. So, she will need to pay for 2 weeks' worth of strawberries.
To calculate the accounts payable, we need to find the cost of 2 weeks' worth of strawberries:

Cost of 1 week's worth of strawberries:
Given that Jina produces 2,400 jars in 6 weeks and gets 4 weeks' worth at a time, the cost of 4 weeks' worth of strawberries is:
\text{Cost}_{\text{4 weeks}} = \frac{4}{6} \times \text{Cost}_{\text{total}} = 2400 \times \text{Cost}_{\text{per jar}}

Cost of 2 weeks' worth of strawberries:
Since Jina gets 2 weeks' credit, she will need to pay for only 2 out of 4 weeks' worth of strawberries. Therefore, the accounts payable is:
\text{Accounts Payable} = \frac{2}{4} \times \text{Cost}_{\text{4 weeks}} = \frac{2}{4} \times 2400 \times \text{Cost}_{\text{per jar}}

Step 3: Accounts Receivable Calculation
The supermarket expects 4 weeks' credit from Jina. So, Jina will need to wait for 4 weeks before receiving payment for her products.
To calculate the accounts receivable, we need to find the revenue for 4 weeks:

Revenue for 1 week:
Given that Jina produces 2,400 jars in 6 weeks, the revenue for 6 weeks is:
\text{Revenue}_{\text{6 weeks}} = 2400 \times \text{Selling price per jar}

Revenue for 4 weeks:
Since the supermarket expects 4 weeks' credit, Jina will receive payment for 4 out of 6 weeks' worth of revenue. Therefore, the accounts receivable is:
\text{Accounts Receivable} = \frac{4}{6} \times \text{Revenue}_{\text{6 weeks}}

Step 4: Cash Flows Calculation
To calculate the cash flows, we need to consider the amounts paid to the farmer, received from the supermarket, and the overall change in cash.

Cash paid to the farmer:
The cost of 2 weeks' worth of strawberries that Jina needs to pay to the farmer is the accounts payable calculated in step 2.

Cash received from the supermarket:
The accounts receivable calculated in step 3 represents the cash that Jina will receive from the supermarket after 4 weeks' credit.

Overall change in cash:
The overall change in cash is the cash received from the supermarket minus the cash paid to the farmer.

Step 5: Prepare the Financial Statements

Statement of Financial Position:
Assets: Inventory = Inventory for the first 4 weeks + Inventory for the remaining 2 weeks
Liabilities: Accounts Payable

Statement of Cash Flows:
Cash flows from operating activities: Cash paid to the farmer + Cash received from the supermarket

Income Statement:
Revenue = Revenue for 4 weeks
Expenses = Cost of 2 weeks' worth of strawberries

\textbf{Answer:}
Statement of Financial Position:
Assets: Inventory = 1600 jars + 800 jars
Liabilities: Accounts Payable

Statement of Cash Flows:
Cash flows from operating activities = Accounts Payable - Accounts Receivable

Income Statement:
Revenue = Revenue for 4 weeks
Expenses = Cost of 2 weeks' worth of strawberries

Frequently asked questions (FAQs)
Question: Find the vertex of the quadratic function f(x) = x^2.
+
What is the length of the altitude of an isosceles triangle with base 10 units and congruent sides of 8 units?
+
What is the variance of the following set of numbers: 3, 5, 7, 9, 11?
+
New questions in Mathematics
Find an arc length parameterization of the curve that has the same orientation as the given curve and for which the reference point corresponds to t=0. Use an arc length s as a parameter. r(t) = 3(e^t) cos (t)i + 3(e^t)sin(t)j; 0<=t<=(3.14/2)
reduction method 2x-y=13 x+y=-1
Determine all solutions to the inequality |2x + 6| − |x + 1| < 6. Write your final answer in interval notation
Calculate the equation of the tangent line ay=sin(x) cos⁡(x)en x=π/2
Determine the correct value: A company knows that invoices pending collection have a normal distribution with a mean of $1.65 million, with a standard deviation of $0.2 million, then: The probability that an invoice pending collection has an amount that is within more than 2 deviations below the mean, is:
If L (-2, -5) reflected across y = -4. What are the coordinates of L?
The graph of the equation x²= 4py is a parabola with focus F(_,_) and directrix y=_____ Therefore, the graph of x²=12y is a parabola with focus F(_,_) and a directrix y=_____
4x-3y=24 and 5x-2y=9 solve by elimination
Reparameterize the curve r(t)= cos(t)i without (t)j (t)k by the arc length.
What is the total tolerance for a dimension from 1.996" to 2.026*?
How many anagrams of the word STROMEC there that do not contain STROM, MOST, MOC or CEST as a subword? By subword is meant anything that is created by omitting some letters - for example, the word EMROSCT contains both MOC and MOST as subwords.
(1) July 1, 2008: Receives $25,000 from Quinn Zealick for 25,000 shares of the stock common face value $1 from the bookstore. (2) July 1, 2008: Obtains $30,000 loan from local bank for needs of working capital. The loan earns 6% interest per year. The loan is payable with interest on June 30, 2009. (3) July 1, 2008: Sign a three-year rental agreement at an annual rent of $20,000 Pay the first year's rent in advance. (4) July 1, 2008: Purchases shelves for $4,000 in cash. The shelves have an estimated useful life of five years and zero residual value. (5) July 1, 2008: Purchase computers for $10,000 in cash. The computers They have an estimated useful life of three years and $1,000 in residual value. (6) July 1, 2008: Makes guarantee deposits with various book distributors for a total of $8,000. Deposits are refundable on June 30, 2009 if the bookstore pays on time all amounts payable for books purchased from distributors between July 2008 and June 30, 2009. (7) During 2008: Purchases books on account from various distributors for a cost of $160,000. (8)During 2008: Sells books costing $140,000 to $172,800. Of the total sales, $24,600 corresponds to cash and $148,200 is on account. (9) During 2008: Returns unsold books and books ordered in error for a cost of $14,600. The company had not yet paid for these books. (10) During 2008: Collected $142,400 from sales on account. (11) During 2008: Pays employees salaries of $16,700. (12) During 2008: Pays $139,800 to book distributors of the amounts payable for purchases on account. (13) December 28, 2008: Receives customer advances of $850 due to order books special that the bookstore will order and expects to receive during 2009. (14) December 31, 2008: Record the corresponding amount of interest expense on the loan in (2) for 2008. (15) December 31, 2008: Record the corresponding amount of rental expense for 2008. (16) December 31, 2008: Record the corresponding amount of depreciation expense on the shelves in (4). (17) December 31, 2008: Record the corresponding amount of depreciation expense about computers in (5). (18) December 31, 2008: Record the corresponding amount of income tax expense. profits for 2008. The income tax rate is 40%. The taxes are paid on March 15, 2009. (1) March 15, 2009: Pays 2008 income tax. (2) June 30, 2009: Pay off the bank loan with interest. (3) July 1, 2009: Obtains a new bank loan for $75,000. He loan is payable on June 30, 2010, with 8% interest payable to the expiration. (4) July 1, 2009: Receives security deposits from book distributors. (5) July 1, 2009: Pay the rent corresponding to the period from July 1 2009 to June 30, 2010. (6) During 2009: Purchase books on account for a cost of $310,000. (7)During 2009: Sold books for a cost of $286,400 for $353,700. Of the total sales, $24,900 corresponds to cash, $850 corresponds to special orders received during December of 2008 and $327,950 are on account. (8) During 2009: Returns unsold books at a cost of $22,700. The company has not yet I had paid for these books. (9) During 2009: Collects $320,600 from sales to accounts. (10) During 2009: Pays employees compensation of $29,400. (11) During 2009: pays $281,100 to book distributors for book purchases from account. (12) December 31, 2009: Declares and pays a dividend of $4,000.
If A and B are any events, the property that is not always true is: a) 0 ≤ 𝑃(𝐴 ∩ 𝐵) ≤ 1 b) 𝑃(Ω) = 1 c) 𝑃(𝐵) = 1 − 𝑃(𝐵𝑐) d) 𝑃(∅) = 0 e) 𝑃(𝐴 ∪ 𝐵) = 𝑃(𝐴) + 𝑃(𝐵)
In an audience of 4000 people, 2 people are chosen, at random, to appear on stage. How many ways can the people be chosen?
30y - y . y = 144
A contractor gives a bank note for $10250 at a rate of 1% for one month. How much interest is charged for 4 months?
nI Exercises 65-68, the latitudes of a pair of cities are given. Assume that one city si directly south of the other and that the earth is a perfect sphere of radius 4000 miles. Use the arc length formula in terms of degrees to find the distance between the two cities. 65. The North Pole: latitude 90° north Springfield, Illinois: latitude 40° north
We plan to test whether the mean mRNA expression level differs between two strains of yeast, for each of 8,000 genes. We will measure the expression levels of each gene, in n samples of strain 1 and m samples of strain 2. We plan to compute a P-value for each gene, using an unpaired two-sample t-test for each gene (the particular type of test does not matter). a) What are the null hypotheses in these tests (in words)? [2] b) If, in fact, the two strains are identical, how many of these tests do we expect to produce a P-value exceeding 1/4? [2]
How many digits are there in Hindu-Arabic form of numeral 26 × 1011
Triangle ABC has AB=AC and angle BAC =X, with X being less than 60 degrees. Point D lies on AB such that CB = CD Point E lies on AC such that CE= DE Determine angle DEC in terms of X