Due April 24, 2007
Hicks Corporation seeks your assistance with their budget.
At July 30, the company has
cash of $5,500, A/R of $437,000, inventory of $309,400, and A/P of $133,045.
company has the following policies:
All sales are billed on the last day of each month.
Collections of A/R are:
85% within one month, 9% within two months, the remainder
54% of expenses are paid in the month in which they are incurred, the remainder the
Ending inventory (in units) equals 130% of the next month’s sales.
Cost of goods sold is $20 per unit
S, G, & A Expenses, of which $2000 is depreciation, are 15% of the current month’s
Actual and projected sales are:
What are the budgeted purchases for August?