Garda purchased $700,000 of merchandise in August and budgets merchandise purchases of $720,000 in September. Merchandise purchases are paid as follows: 20% in the month of purchase and 80% in the month after the purchase. Prepare a schedule of cash payments for merchandise purchases for September. GARDA Schedule of Cash Payments for Merchandise Purchases September Merchandise purchases 720,000 Cash payments for: Current period purchases Prior period purchases Total cash payments for merchandise purchases

Garda purchased $700,000 of merchandise in August and budgets merchandise purchases of $720,000 in September. Merchandise purchases are paid as follows: 20% in the month of purchase and 80% in the month after the purchase. Prepare a schedule of cash payments for merchandise purchases for September. GARDA Schedule of Cash Payments for Merchandise Purchases September Merchandise purchases 720,000 Cash payments for: Current period purchases Prior period purchases Total cash payments for merchandise 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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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.
Garda purchased $690,000 of merchandise in August and budgets merchandise purchases of $670,000 in September. Merchandise purchases are paid as follows: 30% in the month of purchase and 70% in the month after the purchase. Prepare a schedule of cash payments for merchandise purchases for September. GARDA Schedule of Cash Payments for Merchandise Purchases September Merchandise purchases $ 670,000 Cash payments for: Current period purchases Prior period purchases Total cash payments for merchandise purchases
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Garda purchased $700,000 of merchandise in August and budgets merchandise purchases of $710,000 in September Merchandise purchases are paid as follows: 15% in the month of purchase and 85% in the month after the purchase. Prepare a schedule of cash payments for merchandise purchases for September, GARDA Schedule of Cash Payments for Merchandise Purchases September Merchandise purchases Cash payments for Current period purchases 710,000 Prior period purchases Total cash payments for merchandise purchases
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Jasper Company has 57% of its sales on credit and 43% for cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $524,000 for April, $534,000 for May, and $559,000 for June. Total sales for March are $307,500. Prepare a schedule of cash receipts from sales for April, May, and June. Sales Cash receipts from: Cash sales JASPER COMPANY Schedule of Cash Receipts from Sales April May Collections of prior period sales Total cash receipts 524,000 ***** 534,000 June 559,000
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