Evergreen Furniture, a retailing company, is preparing the cash budget for August. The following inventory information is available Estimated payments in August for purchases in August Estimated purchases for August Estimated cost of goods sold for August Estimated payments in August for purchases in July Estimated payments in August for purchases prior to July Inventories at beginning of August Required: 70% $ 2,428,000 2,560,000 672,000 160,000 658,000

Evergreen Furniture, a retailing company, is preparing the cash budget for August. The following inventory information is available Estimated payments in August for purchases in August Estimated purchases for August Estimated cost of goods sold for August Estimated payments in August for purchases in July Estimated payments in August for purchases prior to July Inventories at beginning of August Required: 70% $ 2,428,000 2,560,000 672,000 160,000 658,000

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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Zisk Company purchases direct materials on credit. Budgeted purchases are April, $89,000; May, $119,000; and June, $129,000. Cash payments for purchases are: 70% in the month of purchase and 30% in the first month after purchase. Purchases for March are $79,000. Prepare a schedule of cash payments for direct materials for April, May, and June.
Munoz Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Munoz’s policy is to maintain an ending inventory balance equal to 10 percent of the following month’s cost of goods sold. April’s budgeted cost of goods sold is $76,000. Required Complete the inventory purchases budget by filling in the missing amounts. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter. Inventory Purchases Budget January February March Budgeted cost of goods sold $60,000 $64,000 $70,000 6,400 Inventory needed 66,400 6,000 Required purchases (on account) $60,400 Determine the amount of cost of goods sold the company will report on its first quarter pro…
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In May 2022, the budget committee of Blue Spruce, Inc. assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $725,000, July $970,000. 2. Cost of goods sold is expected to be 80% of sales. 3. Desired ending merchandise inventory is 30% of the following month's cost of goods sold. 4. The beginning inventory at June 1 will be the desired amount. (a) Compute the budgeted merchandise purchases for June. BLUE SPRUCE, INC. Merchandise Purchases Budget $
Rooney Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Rooney's policy is to maintain an ending inventory balance equal to 10 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $77,000. Required a. Complete the inventory purchases budget by filling in the missing amounts. b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
Teleco Corp. is preparing its budget for the first quarter of 2018. The following data is provided: Inventory, Purchases, and COGS Budget Jan Feb March Cost of goods sold (a) $30,000 $29,000 $22,500 Desired ending inventory (b) 12,900 12,250 ? Total inventory required 42,900 41,250 Less: Beginning inventory (15,000) (12,900) Budgeted Purchases $27,900 $28,350 (a) COGS = 75% of sales (b) $10,000 + 10% of COGS for next month April's cost of goods sold is $34,000. The amount of Merchandise Inventory to be shown on the budgeted balance sheet at March 31 would be ________.
Montel Company's July sales budget shows sales of $560,000. The company budgets beginning merchandise inventory of $68.00O and ending merchandise inventory of $33,000 for July. Cost of goods sold is 30% of sales. Determine the budgeted cost of merchandise purchases for July. Hint: Use the relation (Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory) to solve for purchases. MONTEL COMPANY Budgeted Cost of Merchandise Purchases For Month Ended July
Cullumber Design provided the following budgeted information for April through July: April May June July Projected sales $133120 $157440 $147200 $168960 Projected merchandise purchases $104960 $117760 $99840 $84480 The cash balance on June 1 is $15360. The company pays 40% of merchandise purchases in the month purchased and 60% in the following month. General operating expenses are budgeted to be $39680 per month of which depreciation is $3840 of this amount. Management pays operating expenses in the month incurred. The company makes loan payments of $5120 per month of which $768 is interest and the remainder is principal. How much are budgeted cash disbursements for June? O $110592. O $151552. O $131584. O $80896.
Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April 210 May 140 June 150 July 200 August 160 Each candle costs $ 10. The ending inventory policy is 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $2,460. Required: a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign.a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign. b. Prepare a cash payments budget for the quarter ending June 30.
Summit Company has budgeted purchases of merchandise inventory of $457,500 in January and $533,750 in February. Assume Summit pays for inventory purchases 40% in the month of the purchase and 60% in the month after purchase. The Accounts Payable balance on December 31 is $97,350. Prepare a schedule of cash payments for purchases for January and February. Cash Payments January February Total merchandise inventory purchases Cash Payments Merchandise Inventory: Dec.—Dec. 31 Accounts Payable, paid in Jan. Jan.—Jan. merchandise inventory purchases paid in Jan. Jan.—Jan. merchandise inventory purchases paid in Feb. Feb.—Feb. merchandise inventory purchases paid in Feb. Total payments for merchandise inventory