Cash budget problem-Solution

Cash budget problem-Solution - Budgeting Example At March...

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Budgeting Example At March 31 Streuling Enterprises, a merchandising firm, had an inventory of 38,000 units, and it had accounts receivable totaling $85,000. Sales, in units, have been budgeted as follows for the next four months: April 60,000 May 75,000 June 90,000 July 81,000 Streuling's board of directors has established a new policy to commence in April that the inventory at the end of each month should be only 40% of the units required for the following month's budgeted sales. The selling price is $2 per unit. One-third of sales are paid for by customers in the month of the sale, the balance is collected in the following month. Complete the following second quarter budget schedules by filling in the missing information. Schedule of inventory purchases: April May June July Budgeted sales, in units 60,000 75,000 90,000 81,000 Desired ending inventory 30,000 36,000 32,400 Total needs 90,000 111,000 122,400 Less beginning inventory 38,000 30,000 36,000 Required purchases, in units
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Cash budget problem-Solution - Budgeting Example At March...

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