A corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: • Sales are budgeted at $310,000 for November, $320,000 for December, and $300,000 for January. Collections are expected to be 45% in the month of sale and 55% in the month following the sale. • The cost of goods sold is 60% of sales. • The company desires an ending merchandise inventory equal to 25% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $66,00. • The November beginning balance in the accounts payable account is $253,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December. Complete this question by entering your answers in the tabs below.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![A corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
• Sales are budgeted at $310,000 for November, $320,000 for December, and $300,000 for January.
Collections are expected to be 45% in the month of sale and 55% in the month following the sale.
• The cost of goods sold is 60% of sales.
The company desires an ending merchandise inventory equal to 25% of the cost of goods sold in the following month. Payment
for merchandise is made in the month following the purchase.
The November beginning balance in the accounts receivable account is $66,000.
• The November beginning balance in the accounts payable account is $253,000.
Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare a Schedule of Expected Cash Collections for November and December.
November
December
Schedule of Expected Cash Collections
Accounts receivable
November sales
December sales
Total cash collections
Required B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe8e9e4cf-4538-4b7b-aac4-19dc5190a4bf%2F18c42ba5-c7f6-47e2-9c2c-4c37c39740b2%2Ft6n6wor_processed.jpeg&w=3840&q=75)
![corporation is a wholesaler of industrial goods. Data regarding the store's opera
• Sales are budgeted at $310,000 for November, $320,000 for December, and
Collections are expected to be 45% in the month of sale and 55% in the mon
• The cost of goods sold is 60% of sales.
• The company desires an ending merchandise inventory equal to 25% of the d
for merchandise is made in the month following the purchase.
The November beginning balance in the accounts receivable account is $66,0
• The November beginning balance in the accounts payable account is $253,0C
Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare a Merchandise Purchases Budget for November and December.
Merchandise Purchases Budget
November
December
Total needs
Required purchases
< Required A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe8e9e4cf-4538-4b7b-aac4-19dc5190a4bf%2F18c42ba5-c7f6-47e2-9c2c-4c37c39740b2%2Fw66xjub_processed.jpeg&w=3840&q=75)
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