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On July 1, MTC Wholesalers had a cash balance of $245,000 and accounts payable of $138,600. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Month Actual Sales Month Budgeted Sales May $210,000 July $ 126,000 June 224,000 August 112,000 September 140,000 October All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent of sales revenue. Ending inventory is one-half of the next month's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in the month after purchase. Operating costs are estimated at $39,200 each month and are paid during the month incurred. Required Prepare purchases and cash budgets for July, August, and September. Do not use a negative sign with your answers. MTC Wholesalers Purchases Budget For the Months of July, August, and September Inventory required, current sales Desired ending inventory Total inventory needs Less beginning inventory Purchases Do not use a negative sign with your answers. MTC Wholesalers Cash Budget For the Months of July, August, and September Cash balance, beginning Cash receipts Current month's sales Previous month's sales Sales two months prior Total receipts Cash available 168,000 Cash disbursements: Purchases. Operating costs Total disbursements Cash balance, ending July August September $Answer $Answer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer $Answer $Answer $Answer July August September $Answer $Answer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer $Answer $Answer Answer Answer Answer

On July 1, MTC Wholesalers had a cash balance of $245,000 and accounts payable of $138,600. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Month Actual Sales Month Budgeted Sales May $210,000 July $ 126,000 June 224,000 August 112,000 September 140,000 October All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent of sales revenue. Ending inventory is one-half of the next month's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in the month after purchase. Operating costs are estimated at $39,200 each month and are paid during the month incurred. Required Prepare purchases and cash budgets for July, August, and September. Do not use a negative sign with your answers. MTC Wholesalers Purchases Budget For the Months of July, August, and September Inventory required, current sales Desired ending inventory Total inventory needs Less beginning inventory Purchases Do not use a negative sign with your answers. MTC Wholesalers Cash Budget For the Months of July, August, and September Cash balance, beginning Cash receipts Current month's sales Previous month's sales Sales two months prior Total receipts Cash available 168,000 Cash disbursements: Purchases. Operating costs Total disbursements Cash balance, ending July August September $Answer $Answer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer $Answer $Answer $Answer July August September $Answer $Answer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer $Answer $Answer Answer Answer Answer

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On July 1, MTC Wholesalers had a cash balance of $245,000 and accounts payable of $138,600. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Month Actual Sales Month Budgeted Sales May $210,000 July $ 126,000 June 224,000 August 112,000. September 140,000 October All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent of sales revenue. Ending inventory is one-half of the next month's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in the month after purchase. Operating costs are estimated at $39,200 each month and are paid during the month incurred. Required Prepare purchases and cash budgets for July, August, and September. Do not use a negative sign with your answers. MTC Wholesalers Purchases Budget For the Months of July, August, and September Inventory required, current sales Desired ending inventory Total inventory needs Less beginning inventory Purchases Do not use a negative sign with your answers. MTC Wholesalers Cash Budget For the Months of July, August, and September Cash balance, beginning Cash receipts Current month's sales Previous month's sales Sales two months prior Total receipts Cash available 168,000 Cash disbursements: Purchases. Operating costs Total disbursements Cash balance, ending July August September $Answer $Answer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer $Answer $Answer $Answer July August September $Answer $Answer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer $Answer $Answer Answer Answer Answer
Transcribed Image Text:On July 1, MTC Wholesalers had a cash balance of $245,000 and accounts payable of $138,600. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Month Actual Sales Month Budgeted Sales May $210,000 July $ 126,000 June 224,000 August 112,000. September 140,000 October All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent of sales revenue. Ending inventory is one-half of the next month's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in the month after purchase. Operating costs are estimated at $39,200 each month and are paid during the month incurred. Required Prepare purchases and cash budgets for July, August, and September. Do not use a negative sign with your answers. MTC Wholesalers Purchases Budget For the Months of July, August, and September Inventory required, current sales Desired ending inventory Total inventory needs Less beginning inventory Purchases Do not use a negative sign with your answers. MTC Wholesalers Cash Budget For the Months of July, August, and September Cash balance, beginning Cash receipts Current month's sales Previous month's sales Sales two months prior Total receipts Cash available 168,000 Cash disbursements: Purchases. Operating costs Total disbursements Cash balance, ending July August September $Answer $Answer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer $Answer $Answer $Answer July August September $Answer $Answer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer $Answer $Answer Answer Answer Answer
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