# Noreen 2e Managerial Accounting 8-25 Answers - Problem...

• Notes
• 5
• 67% (3) 2 out of 3 people found this document helpful

This preview shows page 1 - 4 out of 5 pages.

Problem 8-25 (120 minutes)1. Schedule of expected cash collections:AprilMayJuneQuarterCash sales..................\$36,000*\$43,200\$54,000\$133,200Credit sales1................20,000* 24,00028,80072,800Total collections...........\$56,000*\$67,200\$82,800\$206,000140% of the preceding month’s sales.*Given.2. Merchandise purchases budget:AprilMayJuneQuarterBudgeted cost of goods sold1......................... \$45,000*\$ 54,000*\$67,500\$166,500Add desired ending inventory2................. 43,200*54,00028,80028,800Total needs..................88,200*108,00096,300195,300Less beginning inventory.................. 36,000*43,20054,00036,000Required purchases......\$52,200*\$64,800\$42,300\$159,3001For April sales: \$60,000 sales × 75% cost ratio = \$45,000.2At April 30: \$54,000 × 80% = \$43,200.At June 30: July sales \$48,000 × 75% cost ratio × 80% = \$28,800.
*Given.Schedule of expected cash disbursements—merchandise purchasesAprilMayJuneQuarterMarch purchases..........\$21,750* \$ 21,750*April purchases............26,100* \$26,100* 52,200*May purchases.............32,400\$32,40064,800June purchases............21,15021,150Total disbursements......\$47,850* \$58,500\$53,550\$159,900*Given.
Problem 8-25 (continued)3. Schedule of expected cash disbursements—selling and administrative expensesAprilMayJuneQuarterCommissions.............\$ 7,200* \$ 8,640\$10,800\$26,640Rent.........................2,500* 2,5002,5007,500Other expenses..........3,600* 4,3205,40013,320Total disbursements... \$13,300* \$15,460\$18,700\$47,460*Given.