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

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

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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.....................
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## 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.

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

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