Exercise 20-30A (Algo) Merchandising: Schedule of cash paymentsfor merchandise purchases LO P4Hardy Company reports budgeted merchandise purchases below. For those purchases,40% of a month's purchases is paid in the month of purchase, and 60% is paid in the firstmonth after purchase. Prepare the schedule of cash payments for merchandisepurchases for September and October.Budgeted merchandise purchasesAugust195,000September184,000October150,000HARDY COMPANYSchedule of Cash Payments for Merchandise PurchasesMerchandise purchasesCash payments for:Current period purchasesPrior period purchasesSeptemberOctober$184,000 $150,000Total cash payments for merchandise purchasesSA$0 $0

CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…

Answered: Exercise 20-30A (Algo) Merchandising:…

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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D Question 5 Witherspoon Inc. has compiled the following data in order to put together their first quarter operating budget for 20XX Sales (units) January 55,200 February 48,000 March 41,000 Apri 37,000 Additional information: Witherspoon sells each unit for $95. Company policy is to have 30% of next month's sales (in units) in ending finished goods inventory. This policy was met in December. Required: 1. What are the total dollar sales for the quarter? Hint: writo out I sales budget but you do not need to show in your answer. 2. (a) What is the desired ending Inventory for February? (b) What are the Total Units to be Produced for the Quarter? Hint: write out a production budget but you do not need to show in your answer.
Exercise 20-19 (Algo) Schedule of cash payments LO P2 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. ZISK COMPANY Schedule of Cash Payments for Direct Materials Materials purchases Cash payments for: Total cash payments April May June
Exercise 14-7A (Algo) Preparing an inventory purchases budget LO 14-3 Rooney Company sells lamps and other lighting fotures. The purchasing department manager prepared the following inventory purchases budget Rooney's policy is to maintain an ending inventory balance equal to 20 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $82,000 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 Complete this question by entering your answers in the tabs below. Red A Rea B and C Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget January February March 550,000 $ 62.000 $ 60.000 Budgeted cost of goods sold
January February Inventory purchases budget in units 12,000 15,000 Each unit costs $5. ABC pays 20% in the month of purchase and 80% in the following the purchase. Accounts payable at December 31 = $25,000 How much cash will be disbursed for inventory purchases in February? Select one: $88,000 $48,000 $27,000 $63,000
Cash Budget Khloe Company imports gift items from overseas and sells them to gift shops and department stores throughout the United States. Khloe Company provided the following information: a. The October 31 balance in the cash account is $53,915. b. All sales are on account. Sales in September were $1,020,000 and in October were $1,280,00. c. November sales are expected to be $2,170,000. d. In Khloe's experience, 70 percent of sales are collected in the month of sale and 27 percent are collected in the month following sale. The remaining credit sales are uncollectible. e. Khloe purchases all merchandise on account. Purchases in September were $710,000 and in October were $950,000. November purchases are expected to be $2,020,000 as Khloe prepares for the Christmas buying season. Fifteen percent of purchases are paid in the month of purchase, while the remainder is paid in the month following the purchase month. f. Khloe Company has nine employees who are paid a total of $47,000 per…
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Exercise 14-7A (Algo) Preparing an inventory purchases budget LO 14-3 Perez Company selts lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget Perez's policy is to maintain an ending inventory balance equal to 15 percent of the following month's cost of goods sold. Aprif's budgeted cost of goods sold is $85,000 Required a. Complete the inventory purchases budget by fillng 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 Complete this question by entering your answers in the tabs belovw. Reg A Reg and C Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget January February March Butgeted cost of goods sold 61,000 s 67,000 57,000 $ 9,150 Inventory needed…
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Problem 10-49: Budgeting for a Merchandising Firm Background Budgeted sales: December $250,000 January $225,000 Collections of A/R: Collected in month of sale 50.00% Collected following month 48.00% Est B/D expense 2.00% Discount for early payment 1.00% Gross margin % 30% Target End Inv, as % of following month's sales 80.00% Merchandise payments: % paid in month following month of purchase 100.00% Other operating expenses (cash) = $25,000 Annual depreciation expense = $216,000 Goldberg Company's statement of financial position at the close of business on November 30th follows: GOLDBERG COMPANY Statement of Financial Position November 30, 2016 Assets Cash…
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QS 20-18 (Algo) Schedule of cash receipts LO P2 X-Tel budgets sales of $64,000 for April, $116,000 for May, and $52,000 for June. Sales are 60% cash and 40% on credit. All credit sales are collected in the month following the sale. Total sales for March were $13,000. Prepare a schedule of cash receipts from sales for April, May, and June X-TEL Schedule of Cash Receipts from Sales Sales Cash receipts from: Total cash receipts April May June $ 64,000 $ 116,000 $ 52,000
PROBLEM 7-H CASH DISBURSEMENTS BUDGET A 2016 cash budget is being prepared for the purchase of TOBI, a merchandise item. Budgeted data are: Cost of goods sold for 2016 P300,000 Accounts payable 1/1/16 P20,000 Inventory-1/1/16 P30,000 12/31/16 P42,000. Purchases will be made in twelve equal monthly amounts and paid for in the following month. Required: How much is the 2016 budgeted cash payment for purchases of TOBI?

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