chapter 9 number 4 answer.xlsx - The following data relate...

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The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: means thatn Current assets as of March 31: Cash $ 7,600 Accounts receivable $ 20,400 Inventory $ 40,200 Building and equipment, net $ 128,400 Accounts payable $ 23,925 Capital stock $ 150,000 Retained earnings $ 22,675 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) $ 51,000 April $ 67,000 May $ 72,000 June $ 97,000 July $ 48,000 c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The account d. Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold. e. One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid for in t f. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,400 per month; other expenses (exclud g. Equipment costing $1,600 will be purchased for cash in April. h. Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. T Required: Using the data above:

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