# 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