Assignment 6 - John Kim 2015120426 Assignment#6 Management...

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John Kim 2015120426 Assignment #6 – Management Accounting Problem 10-25 1) Schedule of Expected Cash Collections April May June Quarter Cash sales $36,000 $72,000 x 0.6 = $43,200 $90,000 x 0.6 = $54,000 $133,200 Credit sales $20,000 $40,000 x 0.4 = $24,000 $72,000 x 0.4 = $28,800 $72,800 Total collections $56,000 $67,200 $82,800 $206,000 2) Merchandise Purchases Budget April May June Quarter Budgeted cost of goods sold $45,000 $54,000 $90,000 x 0.75 = $67,500 $166,500 Add desired ending inventory $43,200 $ 67,500 x 0.8 = $54,000 ($48,000 x 0.75) x 0.8 = $28,800 $28,800 Total needs $88,200 $108,000 $96,300 $195,300 Less beginning inventory $36,000 $43,200 $54,000 $36,000 Required purchases $52,200 $64,800 $42,300 $159,300
John Kim 2015120426 Schedule of Expected Cash Disbursements – Merchandise Purchases April May June Quarter March purchases $21,750 $21,750 April purchases $26,100 $26,100 $52,200 May purchases $64,800 x 0.5 = $32,400 $32,400 $64,800 June Purchases $42,300 x 0.5 = $21,150 $21,150 Total disbursements $47,850 $58,500 $53,550 $159,900 3) Schedule of Expected Cash Disbursements – Selling and Administrative Expenses April May June Quarter Commission $7,200 $72,000 x 0.12 = $8,640 $90,000 x 0.12 = $10,800 $26,640 Rent $2,500 $2,500 $2,500 $7,500 Other Expnses 3,600 $72,000 x 0.06 = $4,320 $90,000 x 0.06 = $5,400 $13,320 Total disbursements $13,300 $15,460 $18,700 $47,460 4)
John Kim 2015120426 Cash Budget April May June Quarter Cash balance, beginning $8,000 $4,350 $90,000 x 0.12 = $10,800 $26,640 Add cash collections $56,000 $67,200 $2,500 $7,500 Total cash available $64,000 $71,550 $90,000 x 0.06 = $5,400 $13,320 Less cash disbursements For inventory

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