{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

week 6 homework

# week 6 homework - Problem921(120minutes 1 January Cashsales...

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

1 Schedule of expected cash collections: January February March Quarter Cash sales  \$28,000  \$32,000  \$34,000  Credit sales*  Total collections  \$64,000  \$74,000  \$82,000  \$220,000  *60% of the preceding month’s sales. 2 Merchandise purchases budget: January February March Quarter \$49,000  \$56,000  \$59,500  \$164,500  Add desired ending inventory*  Total needs  60,200 67,900 67,200 172,200 Less beginning inventory  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 disbursements—merchandise purchases January February March Quarter December purchases  \$32,550  January purchases  12,600 \$37,800  50,400 February purchases  14,175 \$42,525  56,700 March purchases  Total disbursements  \$45,150  \$51,975  \$56,350  \$153,475  3 Schedule of expected cash disbursements—selling and administrative expenses January February March Quarter Commissions  \$12,000  \$12,000  \$12,000  \$36,000  Rent  1,800 1,800 1,800 5,400 Other expenses  Total disbursements  \$19,400  \$20,200  \$20,600  \$60,200  4 Cash budget: January February March Quarter Cash balance, beginning  \$ 6,000 \$ 5,450 \$ 5,275 Add cash collections  Total cash available  Less cash disbursements: For inventory  45,150 51,975 56,350 153,475

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 2

week 6 homework - Problem921(120minutes 1 January Cashsales...

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

View Full Document
Ask a homework question - tutors are online