Homework Help is Here – Start Your Trial Now!
Business
Accounting
TRADERS, INC. Balance Sheet September 30, 2015 Assets Liabilities and Equity P 416,000 1,200,000 P 1,400,000 7,200,000 3,536,000 Cash Accounts receivable, net Merchandise inventory Non-current assets Accounts payable Capital stock Retained earnings 2,520,000 8,000,000 Total liabilities and Total assets P 12,136,000 Stockholders' equity P 12,136,000 Additional information: • Budgeted sales for October is P 4,160,000; for November, P 4,000,000 • Gross profit rate is 20% • Of the total sales, 40% is on credit which the company collects in the month following the month of sale. • Purchases in each month are composed of: 80% of the coming month's requirement 20% of the current month's requirement Purchases are paid for in the month following the month of purchase Questions: The budgeted cash collections for the month of October is Budgeted purchases during October is The budgeted gross profit for the month of October is

TRADERS, INC. Balance Sheet September 30, 2015 Assets Liabilities and Equity P 416,000 1,200,000 P 1,400,000 7,200,000 3,536,000 Cash Accounts receivable, net Merchandise inventory Non-current assets Accounts payable Capital stock Retained earnings 2,520,000 8,000,000 Total liabilities and Total assets P 12,136,000 Stockholders' equity P 12,136,000 Additional information: • Budgeted sales for October is P 4,160,000; for November, P 4,000,000 • Gross profit rate is 20% • Of the total sales, 40% is on credit which the company collects in the month following the month of sale. • Purchases in each month are composed of: 80% of the coming month's requirement 20% of the current month's requirement Purchases are paid for in the month following the month of purchase Questions: The budgeted cash collections for the month of October is Budgeted purchases during October is The budgeted gross profit for the month of October is

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
100%
Traders, Inc. uses accrual accounting. Its balance sheet as of the end of the third quarter of the calendar year 2015 is shown on the following page: TRADERS, INC. Balance Sheet September 30, 2015 Assets Liabilities and Equity P 416,000 Accounts payable Capital stock Retained earnings P 1,400,000 7,200,000 3,536,000 Cash Accounts receivable, net Merchandise inventory 1,200,000 2,520,000 8,000,000 Non-current assets Total liabilities and P 12,136.000 Stockholders' equity P 12,136,000 Total assets Additional information: • Budgeted sales for October is P 4,160,000; for November, P 4,000,000 • Gross profit rate is 20% • Of the total sales, 40% is on credit which the company collects in the month following the month of sale. • Purchases in each month are composed of: 80% of the coming month's requirement 20% of the current month's requirement Purchases are paid for in the month following the month of purchase Questions: The budgeted cash collections for the month of October is Budgeted purchases during October is The budgeted gross profit for the month of October is
Transcribed Image Text:Traders, Inc. uses accrual accounting. Its balance sheet as of the end of the third quarter of the calendar year 2015 is shown on the following page: TRADERS, INC. Balance Sheet September 30, 2015 Assets Liabilities and Equity P 416,000 Accounts payable Capital stock Retained earnings P 1,400,000 7,200,000 3,536,000 Cash Accounts receivable, net Merchandise inventory 1,200,000 2,520,000 8,000,000 Non-current assets Total liabilities and P 12,136.000 Stockholders' equity P 12,136,000 Total assets Additional information: • Budgeted sales for October is P 4,160,000; for November, P 4,000,000 • Gross profit rate is 20% • Of the total sales, 40% is on credit which the company collects in the month following the month of sale. • Purchases in each month are composed of: 80% of the coming month's requirement 20% of the current month's requirement Purchases are paid for in the month following the month of purchase Questions: The budgeted cash collections for the month of October is Budgeted purchases during October is The budgeted gross profit for the month of October is
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 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