Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: Revenues $ 253,000 $ 272,000 $ 299,000 $ 346,000 $ 355,000 April May June July August Carmen's sales are 60% cash and 40% store credit. The credit sales are collected 60% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $34,000. Carmen's cost of sales averages 65% 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 40% in the month of purchase and 60% the following month. Accounts payable on April1 is $133,000. a. Prepare a purchases budget for as many months as is possible. April May June July August Sales Cost of Sales Percentage % Cost of Sales Ending Inv Beginning Inv Purchases

Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: Revenues $ 253,000 $ 272,000 $ 299,000 $ 346,000 $ 355,000 April May June July August Carmen's sales are 60% cash and 40% store credit. The credit sales are collected 60% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $34,000. Carmen's cost of sales averages 65% 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 40% in the month of purchase and 60% the following month. Accounts payable on April1 is $133,000. a. Prepare a purchases budget for as many months as is possible. April May June July August Sales Cost of Sales Percentage % Cost of Sales Ending Inv Beginning Inv Purchases

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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