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 ques

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow
• Sales are budgeted at $470,000 for November, $480,000 for December, and $460,000 for January
• Collections are expected to be 60% in the month of sale and 40% in the month following the sale
The cost of goods sold is 70% of sales.
• The compary desires an ending merchandise inventory equal to 40% of the cost of goods sold in the following month. Payment
for merchandise is made in the month following the purchase.
- The November beginning balance in the accounts receivable account is $82,000.
The November beginning balance in the accounts payable account is $269,000.
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 A
Required B
Prepare a Schedule of Expected Cash Collections for November and December.
November
December
Sales
Schedule of Expected Cash Collections
Accounts recelvable
November sales
December sales
Total cash collections
Required B >
Transcribed Image Text:Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow • Sales are budgeted at $470,000 for November, $480,000 for December, and $460,000 for January • Collections are expected to be 60% in the month of sale and 40% in the month following the sale The cost of goods sold is 70% of sales. • The compary desires an ending merchandise inventory equal to 40% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. - The November beginning balance in the accounts receivable account is $82,000. The November beginning balance in the accounts payable account is $269,000. 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 A Required B Prepare a Schedule of Expected Cash Collections for November and December. November December Sales Schedule of Expected Cash Collections Accounts recelvable November sales December sales Total cash collections Required B >
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 A
Required B
Prepare a Merchandise Purchases Budget for November and December.
Merchandise Purchases Budget
Cost of goods sold
November
December
Total needs
Required purchases
< Required A
Transcribed Image Text: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 A Required B Prepare a Merchandise Purchases Budget for November and December. Merchandise Purchases Budget Cost of goods sold November December Total needs Required purchases < Required A
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