Take-home quiz, March 23, Due March 30, Trojan Corporation

Take-home quiz, March 23, Due March 30, Trojan Corporation...

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Take-home Quiz                     (Due date:  in class on March 30, Monday) Trojan Corporation  The following data relate to the operations of Picanuy Corporation, a wholesale distributor of consumer goods: Actual sales for December and budgeted sales for January-April are as follows: December(actual ) January February March April Sales $60,000 $70,000 $80,000 $85,000 $55,00 0 Sales are 40% for cash and 60% on credit. Credit sales are collected in the month following sale. The accounts receivable OF $36,000 on  December 31 are the result of December credit sales. 1.Schedule of expected cash collections:     January February March Quarter Cash sales. .......... $28,000 Credit sales. ......... 36,000 1
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Total collections. ... $64,000 Trojan Corporation (cont’d) Gross margin is 30% of sales. In other words, cost of goods sold is 70% of sales.  Each month’s ending inventory should equal 20% of the following month’s cost of good sold. December(actual ) January February March Apr il Sales $60,000 $70,000 $80,000 $85,000 $55, 000 2. Merchandise purchases budget:     January February March Quarter Budgeted cost of goods sold  (70% of sales). ................... $49,000 Add desired ending  inventory. ........................... 11,200 Total needs. .......................... 60,200 2
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Less beginning inventory. ..... 9,800
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Take-home quiz, March 23, Due March 30, Trojan Corporation...

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