Reqired infernation Required a. Octaber sales are estimated to be $200,0o0, of w

Question

Reqired infernation Required a. Octaber sales are estimated to be $200,0o0, of which 40 percent will be cash and 60 percent wil be credit. The b. The compary expects to collect 100 percent of the accounts recelvable generated by credit sales in the month falowng the sale e. The cast of goods sold is 60 percont of sales The company desires to maintain a minimum ending inventory equal to 10 percent of company expects sales to increase at the rate of 25 percent per month. Prepare a seles budget Prepare a schedule of cash recepts the next month's cost of goods sold. However, onding inventory of December is expected to be $12.000 Assume thet ell purchases 20 are made on account Propare an irventory purchases budget o d. The compery peys 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the toilowing moreh Propare a cash payments budget for inventory purchases. e. Budgeted selling and edministrative expenses per manth falow Salary expense (fixed) Sales conmissions Supplies expense Utilities (fixed) Depreciation on store fixtures (fixed)* Rent (fixed) Miscellaneous (fixed) $18,886 5% of Sales 2% of Sales 1,4e0 s 4,aee 4,886 s 1,200 The captal expendtures budget indicanes that Adams wil spend $154,000 on October 1 for store fixtures, which are expected to heve e $20,000 salvage value and a three-yeer 136-month) useful life Use this information to prepare a sciling and administrative expenses budget. Prev 1 2 of 2 Next>

Explanation / Answer

Schedule of cash receipts :

October November December Current cash sales 80000 100000 125000 Plus: Collection from A/R 96000 120000 150000 Total collection 176000 220000 275000

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.