week 6 homework

# week 6 homework - Problem919(60minutes 1 Collectionsonsales...

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Problem 9-19  (60 minutes) 1. Collections on sales: July August Sept. Quarter Cash sales. ............................... \$ 8,000 \$14,000 \$10,000 \$ 32,000 Credit sales: May: \$30,000 × 80% × 20%. .. 4,800 4,800 June: \$36,000 × 80% × 70%,  20%. .................................... 20,160 5,760 25,920 July: \$40,000 × 80% × 10%,  70%, 20%. ........................... 3,200 22,400 6,400 32,000 Aug.: \$70,000 × 80% × 10%,  70%. .................................... 5,600 39,200 44,800 Sept.: \$50,000 × 80% × 10%. .                                                   4,000               4,000

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Total cash collections. ............... \$36,160 \$47,760 \$59,600 \$143,520 2. a. Merchandise purchases budget: July August Sept. Oct. Budgeted cost of goods sold. .... \$24,000 \$42,000 \$30,000 \$27,000 Add desired ending inventory*. .   31,500       22,500       20,250     Total needs. ............................... 55,500 64,500 50,250 Less beginning inventory. .........   18,000       31,500       22,500     Required inventory purchases. . \$37,500 \$33,000 \$27,750 *75% of the next month’s budgeted cost of goods sold. b. Schedule of expected cash disbursements for merchandise  purchases: July August Sept. Quarter Accounts payable, June 30. ...... \$11,700 \$11,700 July purchases. ......................... 18,750 \$18,750 37,500 August purchases. .................... 16,500 \$16,500 33,000 September purchases. ..............                                               13,875       13,875     Total cash disbursements. ........ \$30,450 \$35,250 \$30,375 \$96,075
Problem 9-19  (continued) 3. Janus Products, Inc. Cash Budget For the Quarter Ended September 30 July August Sept. Quarter Cash balance, beginning. ....... \$ 8,000 \$ 8,410 \$ 8,020 \$   8,000 Add collections from sales   36,160       47,760       59,600       143,520     Total cash available. .............   44,160       56,170       67,620       151,520     Less disbursements: For inventory purchases. ...... 30,450

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week 6 homework - Problem919(60minutes 1 Collectionsonsales...

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