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and December of each year, The company sales were highly seasonal. Over 80% of annual dollar volume usually sold between August and November. Table C shows sales by month for and projected monthly sales for 1994. Sales were made mainly to large variety chains and toy brokers. Although the company quoted terms of net 30 days, most tomers took 60 days to pay: however, collection experience had been excellent The company production processes were not complex. Plastic molding powden principal raw material, was processed by injection molding presses and formed intu shapes desired. The toy sets were then assembled and packaged in cardboard carton plastic bags. Typically, all runs begun were completed on the same day, so that was virtually no work in process at the end of the day, Purchases on net 30-day tu were made weekly in amounts necessary for estimated production in the coming Total purchases in 1994 wetc forecast at $3 million. It was the company's policy tire trade debt promptly as it came due. Mr. Hoffman, the production manager, believed the company would be able to capital expenditures during the next year to an amount equal to depreciation, alth be had cautioned that projected volume for 1994 would approach the full capaci Toy World's equipment Toy World Inc.'s prictice was to produce in response to customer orders. This only a small fraction of capacity was needed to meet demand for the first seven of the year. Ordinarily, not more than 25-30% of manufacturing capacity was any one time during this period. The first sizable orders for the Christmas busine rived around the middle of August. From August to December the workfore greatly expanded and put on overtime, and all equipment was used 16 hours a 1993 overtime premiums had amounted to $185,000. Whenever possible, ship were made on the day an order was produced. Hence, production and sales amou onth tended to be equal ch 2. List the major bu and December of each year, The company sales were highly seasonal. Over 80% of annual dollar volume usually sold between August and November. Table C shows sales by month for and projected monthly sales for 1994. Sales were made mainly to large variety chains and toy brokers. Although the company quoted terms of net 30 days, most tomers took 60 days to pay: however, collection experience had been excellent The company production processes were not complex. Plastic molding powden principal raw material, was processed by injection molding presses and formed intu shapes desired. The toy sets were then assembled and packaged in cardboard carton plastic bags. Typically, all runs begun were completed on the same day, so that was virtually no work in process at the end of the day, Purchases on net 30-day tu were made weekly in amounts necessary for estimated production in the coming Total purchases in 1994 wetc forecast at $3 million. It was the company's policy tire trade debt promptly as it came due. Mr. Hoffman, the production manager, believed the company would be able to capital expenditures during the next year to an amount equal to depreciation, alth be had cautioned that projected volume for 1994 would approach the full capaci Toy World's equipment Toy World Inc.'s prictice was to produce in response to customer orders. This only a small fraction of capacity was needed to meet demand for the first seven of the year. Ordinarily, not more than 25-30% of manufacturing capacity was any one time during this period. The first sizable orders for the Christmas busine rived around the middle of August. From August to December the workfore greatly expanded and put on overtime, and all equipment was used 16 hours a 1993 overtime premiums had amounted to $185,000. Whenever possible, ship were made on the day an order was produced. Hence, production and sales amou onth tended to be equal ch 2. List the major bu

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