Week_4.2_-_Learning_Exercises-Student

Week_4.2_-_Learning_Exercises-Student - Cash Receipts...

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Cash Receipts Budget What is the amount of expected collections for May? February sales $80,000 March sales $60,000 Sales budget for the second quarter: April May June $100,000 $150,000 $180,000 Collection History: Month of sale 30% Following month 50% 2 months following 20% 100% Solution: march 20% 60000 april 50% may 30%
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Purchases Budget How many units need to be purchased in August? Sales budget for the third quarter (number of units): July August September 10,000 12,000 15,000 Percent of following month's sales budget as ending inventory 20% Unit purchase price $5.00 Beginning inventory for July is the target ending inventory for June. Solution: july august
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What is the amount of cash disbursements for October? October November December Purchases $40,000 $70,000 $50,000 Advertising $2,000 $4,000 $2,000 Commissions $3,000 $2,000 $4,000 Rent $5,000 $5,000 $5,000 Utilities $1,000 $2,000 $2,000 Wages $8,000 $10,000 $9,000 Payment for purchases: Month of purchase
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This note was uploaded on 11/15/2010 for the course ACCOUNTING AC505 taught by Professor Seegmiller during the Spring '10 term at DeVry Denver.

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Week_4.2_-_Learning_Exercises-Student - Cash Receipts...

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