Solution%20to%20missed%20tutorial%20Nov%2012%20or%2013%20Pr%209-23

Solution%20to%20missed%20tutorial%20Nov%2012%20or%2013%20Pr%209-23

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Problem 9-23 (120 minutes) 1. Schedule of expected cash collections: January February March Quarter Cash sales............................ $28,000 $32,000 $34,000 $ 94,000 Credit sales*......................... 36,000 42,000 48,000 126,000 Total collections.................... $64,000 $74,000 $82,000 $220,000 *60% of the preceding months sales. 2. Merchandise purchases budget: Januar y Februar y March Quarter Budgeted cost of goods sold (70% of sales).................... $49,000 $56,000 $59,500 $164,500 Add desired ending inventory*........................... 11,200 11,900 7,700 7,700 Total needs........................... 60,200 67,900 67,200 172,200 Less beginning inventory...... 9,800 11,200 11,900 9,800 Required purchases............. $50,400 $56,700 $55,300 $162,400 *At March 30: April sales $55,000 70% 20% = $7,700. Schedule of expected cash disbursementsmerchandise purchases Januar y February March Quarter December purchases........... $32,550 $ 32,550 January purchases............... 12,600 $37,800 50,400 February purchases............. 14,175 $42,525 56,700 March purchases.....................
View Full Document

This note was uploaded on 06/14/2011 for the course BUS 254 taught by Professor Favere-marchesi during the Fall '10 term at Simon Fraser.

Page1 / 4

Solution%20to%20missed%20tutorial%20Nov%2012%20or%2013%20Pr%209-23

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online