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

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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.

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