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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is:
Revenues
April
May
$ 253,000
$ 272,000
$ 299,000
$ 346,000
$ 355,000
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 April 1 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1e1d114-cba9-4c4f-a9ab-1a346fb28105%2Fbccf5fff-b5cf-48e7-89d0-dabbbcf0d088%2Fmwqy9a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is:
Revenues
April
May
$ 253,000
$ 272,000
$ 299,000
$ 346,000
$ 355,000
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 April 1 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
![b. Prepare a cash payments budget for April through July.
April
May
June
July
From This Month
From Last Month
Cash Payments
c. Prepare a cash receipts budget for April through July. (Do not round intermediate calculations.)
April
May
Juie
July
Cash Sales
Collected in the Month of Sale
Collected the Following Month
Cash Collected](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1e1d114-cba9-4c4f-a9ab-1a346fb28105%2Fbccf5fff-b5cf-48e7-89d0-dabbbcf0d088%2Fc7eh47k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:b. Prepare a cash payments budget for April through July.
April
May
June
July
From This Month
From Last Month
Cash Payments
c. Prepare a cash receipts budget for April through July. (Do not round intermediate calculations.)
April
May
Juie
July
Cash Sales
Collected in the Month of Sale
Collected the Following Month
Cash Collected
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