Homework Help is Here – Start Your Trial Now!
Business
Accounting
Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: April May June July August Revenues $ 259,000 $ 268,000 $ 292,000 $ 348,000 $360,000 Carmen's sales are 80% cash and 20% store credit. The credit sales are collected 70% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $40,000. Carmen's cost of sales averages 60% of revenues. The inventory policy is to carry 30% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 20% in the month of purchase and 80% the following month. Accounts payable on April 1 is $130,000. a. Prepare a purchases budget for as many months as is possible. Sales Cost of Sales Percentage Cost of Sales Ending Inv Beginning Inv Purchases April % May % June % July % August %

Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: April May June July August Revenues $ 259,000 $ 268,000 $ 292,000 $ 348,000 $360,000 Carmen's sales are 80% cash and 20% store credit. The credit sales are collected 70% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $40,000. Carmen's cost of sales averages 60% of revenues. The inventory policy is to carry 30% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 20% in the month of purchase and 80% the following month. Accounts payable on April 1 is $130,000. a. Prepare a purchases budget for as many months as is possible. Sales Cost of Sales Percentage Cost of Sales Ending Inv Beginning Inv Purchases April % May % June % July % August %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: April May June July August Revenues $ 259,000 $ 268,000 $ 292,000 $ 348,000 $360,000 Carmen's sales are 80% cash and 20% store credit. The credit sales are collected 70% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $40,000. Carmen's cost of sales averages 60% of revenues. The inventory policy is to carry 30% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 20% in the month of purchase and 80% the following month. Accounts payable on April 1 is $130,000. a. Prepare a purchases budget for as many months as is possible. Sales Cost of Sales Percentage Cost of Sales Ending Inv Beginning Inv Purchases April % May % June % July % August %
Transcribed Image Text:Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: April May June July August Revenues $ 259,000 $ 268,000 $ 292,000 $ 348,000 $360,000 Carmen's sales are 80% cash and 20% store credit. The credit sales are collected 70% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $40,000. Carmen's cost of sales averages 60% of revenues. The inventory policy is to carry 30% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 20% in the month of purchase and 80% the following month. Accounts payable on April 1 is $130,000. a. Prepare a purchases budget for as many months as is possible. Sales Cost of Sales Percentage Cost of Sales Ending Inv Beginning Inv Purchases April % May % June % July % August %
es b. Prepare a cash payments budget for April through July. From This Month From Last Month Cash Payments April Cash Sales Collected in the Month of Sale Collected the Following Month Cash Collected May June c. Prepare a cash receipts budget for April through July. (Do not round intermediate calculations.) April July May June July
Transcribed Image Text:es b. Prepare a cash payments budget for April through July. From This Month From Last Month Cash Payments April Cash Sales Collected in the Month of Sale Collected the Following Month Cash Collected May June c. Prepare a cash receipts budget for April through July. (Do not round intermediate calculations.) April July May June July
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS