The e compan y pays 80 percent of it cash expenses in the period aining 20 perce

Question

The e compan y pays 80 percent of it cash expenses in the period aining 20 percent are paid in the following fiscal quarter payable totaling $25,000 were outstanding at the beginning of the yat these data, complete the following requirements. a. Pre epare a quarterly fixed cost budget for the coming year. b. Prepare a cash payments schedule for the coming year. c. Compute the total accounts payable expected to be outstanding a 9. Heart & Soul Music Store expects to sell 20,000 CDs in thet our monh of business in 20X1. Each CD sells for $12 and costs 88. M to prepare an operating budget for the first fiscal quarter (Q1). Oente January, February, and March. Monthly sales are projected to be as hlu e JanuaryFebruary March 20X1 2,500 4,0007,500 6000 Expected sales (in units) a. Prepare a monthly sales forecast in dollars for Q1 (January, Februany and March). b. Prepare a monthly contribution margin statement for Q1. c. Assume that for Heart & Soul's operations, ending inventory is projetedl to be 80 percent of next month's sales. Assume the company started 20X with 2,000 CDs in its inventory. How many CDs does the company nedlb buy in each month of Q1? l. What is the cost of inventory purchases for each month? ggs Cetera is new breakfast café. Based on a recent market analysis,the mpany expects the following quarterly demand (number of customers;

Explanation / Answer

Sales Forecast in Dollars

2. Margin Statement for the Q1

3. Inventory to be kept 80% of the next month sales

4. Inventory will be purchased at cost which is $8 per CD.

Jan = 3700 X 8 = $29,600

Feb = 6800 x 8 = $54,400

Mar = 6300 x 8 = $50,400

Particulars Jan Feb Mar Expected Sales units 2500 4000 7500 Sale Price 12 12 12 Sales in $ 30,000 48,000 90,000

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