Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:• Sales are budgeted at $370,000 for November, $380,000 for December, and $360,000 for January.• Collections are expected to be 45% in the month of sale and 55% in the month following the sale.• The cost of goods sold is 70% of sales.• The company desires an ending merchandise inventory equal to 25% of the cost of goods sold in the following month. Paymentfor merchandise is made in the month following the purchase.• The November beginning balance in the accounts receivable account is $72,000.• The November beginning balance in the accounts payable account is $259,000.Required:a. Prepare a Schedule of Expected Cash Collections for November and December.b. Prepare a Merchandise Purchases Budget for November and December.Complete this question by entering your answers in the tabs below.Required ARequired BPrepare a Schedule of Expected Cash Collections for November and December.NovemberDecemberSalesSchedule of Expected Cash CollectionsAccounts receivableNovember salesDecember salesTotal cash collections< Required ARequired B >

a) November December Sales 370,000 380,000 Schedule of…

Answered: Required: 1. Prepare a Schedule of…

Required: 1. Prepare a Schedule of Expected Cash Collections for November and December. . Prepare a Merchandise Purchases Budget for November and December.

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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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.
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Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October: a. Sales are budgeted to be $163,000. About 85% of sales is cash; the remainder is on account. b. La Famiglia expects that, on average, 70% of credit sales will be paid in the month of sale, and 28% will be paid in the following month. c. Food and supplies purchases, all on account, are expected to be $103,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase. d. Most of the work is done by the owners, who typically withdraw $6,000 a month from the business as their salary. (Note: The $6,000 is a payment in total to the two owners, not per person.) Various part-time workers cost $7,300 per month. They are paid for their work weekly, so on average 90% of their wages are paid in the month incurred and the remaining 10% in the next month. e. Utilities average $5,950 per month. Rent on the building is $4,100 per month. f. Insurance is paid…
Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are: Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense* Total selling and administrative expenses Net operating income *Includes $28,000 of depreciation each month. April May June $ 600,000 $1,100,000 $ 560,000 420,000 770,000 392,000 180,000 330,000 168,000 111,000 48,000 159,000 105,000 46,000 64,800 44,000 169,800 108,600 90,000 $ 21,000 $ 160,200 $ 59,400 $ 48,000 July $460,000 322,000 138,000 67,000 41,600 b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10%…
ll. Subject Accounting
Please provide complete and correct answer for both requirements and show all work like explanation , computation , formula with steps. Answer in text. Million thanks !
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