Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:o Sales are budgeted at $370,000 for November, $380,000 for December, and $360,000 for January.o Collections are expected to be 45% in the month of sale, 52% in the month following the sale, and 3% uncollectible.• The cost of goods sold is 70% of sales.o 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.o The November beginning balance in the accounts receivable account is $72,000.o The November beginning balance in the accounts payable account is $259,000.Required:a. Prepare a Schedule of Expected Cash Collections for November and December.CAPRICE CORPORATIONSchedule of Expected Cash CollectionsNovemberDecemberSalesSchedule of Expected Cash CollectionsAccounts receivableNovember salesDecember salesTotal cash collectionsb. Prepare a Merchandise Purchases Budget for November and December.CAPRICE CORPORATIONMerchandise Purchases BudgetNovemberDecemberCost of goods soldTotal needsRequired purchases

A cash budget is known as an estimation of expected cash receipts and disbursements based on…

Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: • Sales are budgeted at $370,000 for November, $380,000 for December, and $360,000 for January. • Collections are expected to be 45% in the month of sale, 52% in the month following the sale, and 3% uncollectible. • The cost of goods sold is 70% 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 $72,000. • The November beginning balance in the accounts payable account is $259,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. CAPRICE CORPORATION Schedule of Expected Cash Collections November December Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections b. Prepare a Merchandise Purchases Budget for November and December. CAPRICE CORPORATION Merchandise Purchases Budget November December Cost of goods sold Total needs ............ Required purchases

Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: • Sales are budgeted at $370,000 for November, $380,000 for December, and $360,000 for January. • Collections are expected to be 45% in the month of sale, 52% in the month following the sale, and 3% uncollectible. • The cost of goods sold is 70% 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 $72,000. • The November beginning balance in the accounts payable account is $259,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. CAPRICE CORPORATION Schedule of Expected Cash Collections November December Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections b. Prepare a Merchandise Purchases Budget for November and December. CAPRICE CORPORATION Merchandise Purchases Budget November December Cost of goods sold Total needs ............ Required purchases

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold. Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year as follows: Pittman CompanyBudgeted Income StatementFor the Year Ended December 31 Sales $ 20,000,000 Manufacturing expenses: Variable $ 9,000,000 Fixed overhead 2,800,000 11,800,000 Gross margin 8,200,000 Selling and administrative expenses: Commissions to agents 3,000,000 Fixed marketing expenses 140,000 * Fixed administrative expenses 1,960,000 5,100,000 Net operating income 3,100,000 Fixed interest expenses 700,000 Income before income taxes 2,400,000…
Use the following information for questions 5 & 6: Dilly Farm Supply is in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January. • Collections are expected to be 65% in the month of sale and 35% in the month following the sale. • The cost of goods sold is 80% of sales. • The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $21,100. ● Monthly depreciation is $21,000. • Ignore taxes. Assets Cash A/R Inventory PP&E, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity A/P Common Stock Retained Earnings Total liabilities and stockholders' equity 5. 6. Balance Sheet October 31 a. b. Expected cash collections in December are: C. d. a. b.…
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $179,400, and 13,800 orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. per sales order b. Determine the amount of sales order processing cost that Nozama.com would receive if it had 7,900 sales orders.
Sagar
Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $18,000,000. There is a 6% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following: Salaries $ 960,000 Utilities 365,000 Office space 230,000 Advertising 1,200,000 Required: Prepare a selling and administrative expenses budget for Fazel Company for the coming year. Fazel Company Selling and Administrative Expenses Budget For the Coming Year Variable selling expenses Fixed expenses: Salaries Utilities Office space Advertising Total fixed expenses Total selling and administrative expenses
Weller Industrial Ges Corporation supplies acetylene and other compressed geses to industry. Dets regarding the store's operations follow: Sales are budgeted at $300,000 for November, $320,000 for December, and $310,000 for January Collections are expected to be 75% in the month of sale and 25% in the month following the sale. The cost of goods sold is 76% of sales. The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $20, 600. Monthly depreciation is $20,400. Ignore taxes Balance Sheet October 31 Assets Cash $ 21,400 Accounts receivable 82,400 Merchandise inventory 182,400 Property, plant and equipment (net of $590,000 accumulated depreciation) 1,000,000 Total assets $1,286, 200 Liabilities and Shareholder's Equity Accounts payable $ 195,400 Common shares 550,000 Retained earnings 540,800 Total liabilities and…
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $460,000 for November, $440,000 for December, and $430,000 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 80% of sales. The company would like to maintain ending merchandise inventories equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $25,200. Monthly depreciation is $16,200. Ignore taxes. Balance SheetOctober 31 Assets Cash $ 20,000 Accounts receivable 70,000 Merchandise inventory 153,000 Property, plant and equipment, net of $572,000 accumulated depreciation 1,094,000 Total assets $ 1,337,000 Liabilities and Stockholders' Equity Accounts payable $ 254,000 Common stock 820,000 Retained earnings…
please answer do not image format
(The following information applies to the questions displayed below.] Shadee Corporation expects to sell 600 sun shades in May and 800 in June. Each shade sells for $180. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. Required: 1. Determine Shadee's budgeted total sales for May and June, 2. Determine Shadee's budgeted production in units for May and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine Shadee's budgeted total sales for May and June Budgeted Total Sales May Juna
Shamrock Shades purchases sunglasses from bulk discounters and sells the sunglasses in mall kiosks throughout the Pacific Northwest. Shamrock is in the process of budgeting for the coming year and has projected sales of $360,000 for January, $440,000 for February, $600,000 for March, and $640,000 for April. Shamrock's desired ending inventory is 55 percent of the following month's cost of goods sold. Cost of goods sold is expected to be 45 percent of sales. Required: Compute the required purchases for each month of the first quarter (January through March). January Required Purchases February March
Hardev
Capid Corporation is a wholesaler of industrial goods. Capid purchases 40% of its industrial goods in the month prior to the sale and 60% in the month of the sale. Capid’s cost of goods sold is 75% of sales. Capid budgeted sales of industrial goods are: November $135,000 December $150,000 January $125,000 What is the dollar value of Capid’s purchases in November and December?