Homework Help is Here – Start Your Trial Now!
Business
Accounting
Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $262,500 and accounts payable (related to inventory purchases) of $148,500. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Actual Month Sales Month Budgeted Sales May June $225,000 July 240,000 August September October $135,000 120,000 150,000 180,000 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 $42,000 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 July August 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 September $ July August September Cash balance, beginning $ $ $ Cash receipts Current month's sales Previous month's sales Sales two months prior Total receipts Cash available Cash disbursements: Purchases Operating costs Total disbursements Cash balance, ending $ $ $

Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $262,500 and accounts payable (related to inventory purchases) of $148,500. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Actual Month Sales Month Budgeted Sales May June $225,000 July 240,000 August September October $135,000 120,000 150,000 180,000 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 $42,000 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 July August 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 September $ July August September Cash balance, beginning $ $ $ Cash receipts Current month's sales Previous month's sales Sales two months prior Total receipts Cash available Cash disbursements: Purchases Operating costs Total disbursements Cash balance, ending $ $ $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer in proper format with all workings

Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $262,500 and accounts payable (related to inventory purchases) of $148,500. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Actual Month Sales Month Budgeted Sales May June $225,000 July 240,000 August September October $135,000 120,000 150,000 180,000 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 $42,000 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 July August 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 September $ July August September Cash balance, beginning $ $ $ Cash receipts Current month's sales Previous month's sales Sales two months prior Total receipts Cash available Cash disbursements: Purchases Operating costs Total disbursements Cash balance, ending $ $ $
Transcribed Image Text:Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $262,500 and accounts payable (related to inventory purchases) of $148,500. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Actual Month Sales Month Budgeted Sales May June $225,000 July 240,000 August September October $135,000 120,000 150,000 180,000 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 $42,000 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 July August 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 September $ July August September Cash balance, beginning $ $ $ Cash receipts Current month's sales Previous month's sales Sales two months prior Total receipts Cash available Cash disbursements: Purchases Operating costs Total disbursements Cash balance, ending $ $ $
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS