Required:1. Prepare a schedule of expected cash collections for July, August, and September. Also, compute total cash collections for thequarter ended September 30.2-a. Prepare a merchandise purchases budget for July, August, and September. Also, compute total merchandise purchases for thequarter ended September 30.2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also, computetotal cash disbursements for merchandise purchases for the quarter ended September 30.3. Prepare an income statement for the quarter ended September 30.4. Prepare a balance sheet as of September 30.Complete this question by entering your answers in the tabs below.Required 1 Required 2A Required 2BRequired 3 Required 4Prepare a merchandise purchases budget for July, August, and September. Also, compute total merchandise purchases for thequarter ended September 30.Budgeted cost of goods soldMerchandise Purchases BudgetJuly$August September Quarter277,500 $292,500 $285,000 $855,000Add: Desired ending merchandise inventoryTotal needsLess: Beginning merchandise inventoryRequired purchases83,250< Required 1Required 2B >83,250

1. Expected Cash CollectionsThis involves forecasting how much money your business expects to…

Answered: Required: 1. Prepare a schedule of…

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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Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: • Sales are budgeted at $350,000 for November, $370,000 for December, and $360,000 for January. • Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • The cost of goods sold is 69% of sales. • The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $20,100. Monthly depreciation is $19,900. Ignore taxes. Balance Sheet October 31 Assets Cash $ 20,900 81,900 Accounts receivable Merchandise inventory 193,200 Property, plant and equipment (net of $585,000 accumulated depreciation) 995,000 Total assets $1,291,000 Liabilities and Stockholders' Equity Accounts payable $ 194,900 500,000 596,100 Common stock Retained earnings Total…
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash 24 7,900 %24 21,600 %24 42,000 $ 132,000 Accounts receivable Inventory Building and equipment, net Accounts payable 24 25,050 $ 150,000 $ 28,450 Common stock Retained earnings a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May $ 54,000 $ 70,000 $ 75,000 $ 100,000 $ 51,000 June July c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. e. One-half of a month's inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. f. Monthly expenses are as follows:…
Assets Cash $ 12,000 77,500 42,000 Accounts receivable Inventory Buildings and equipment, net of depreciation 225,000 $ 356,500 Total assets Liabilities and Stockholders' Equity Accounts payable Note payable $ 78,250 19,300 180,000 Common stock Retained earnings 78,950 $ 356,500 Total liabilities and stockholders' equity The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $231,000 for May. Of these sales, $69,300 will be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May. b. Purchases of inventory are expected to total $139,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April 30 accounts…
Francis and Company has planned a cash budget for the third quarter of 2004. The cash balance on July 1, 2004 is expected to be an overdraft of $s82,000. Extracts from the sales and purchases budgets are as follows: Budgeted Budgeted Month Sales Purchases May June July August September $800,000 $900,000 $750,000 $650,000 $800,000 $600,000 $550,000 $450,000 $500,000 All sales are on credit and an analysis of the records shows that debtors settle according to the following pattern, in accordance with the credit terms 5/30, i) n90: 50% in the month of sale 30% in the month following sale 20% the following month All purchases are on credit and past experience shows that 80% are settled in the month of purchase in order to take advantage of a 10% prompt settlement ii) discount. The balance will be disbursed in the month after purchase. The credit terms of the suppliers - 10/30, n60. iii) Wages and salaries are expected to be $1,800,000 per annum and are paid monthly. iv) Fixed operating…
Required: Using the preceding data: Complete the schedule of expected cash collections. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Complete the cash budget. Complete this question by entering your answers in the tabs below. Required 3 Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases.The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 7,200 Accounts receivable $ 18,800 Inventory $ 37,800 Building and equipment, net $ 123,600 Accounts payable $ 22,425 Common stock $ 150,000 Retained earnings $ 14,975 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 47,000 April $ 63,000 May $ 68,000 June $ 93,000 July $ 44,000 Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts…
Garden Sales, Incorporated, usually has to borrow money during the second quarter to support peak sales of lawn care equipment during May. It gathered the following information to prepare 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 $30,000 of depreciation each mon. April $ 700,000 490,000 210,000 88,000 49,000 137,000 $ 73,000 May $ 870,000 609,000 261,000 107,000 66,400 173,400 $ 87,600 June $ 580,000 406,000 174,000 69,000 42,800 111,800 $ 62,200 July $ 480,000 336,000 144,000 48,000 46,000 94,000 $ 50,000 b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10% collected in the month of sale, 70% collected in the first month following the month of sale, and the remaining 20%…
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.…
Prepare Schedule of Expected Cash collections ,Merchandise purchase budget,Schedule of cash dusbursement for merchandise purchase and cash Budget and also prepare Absorption Costing Income Statement and balance sheet as of March 31
I need help with this three part problem 1. Calculate the expected cash collections for December. 2. Calculate the expected cash disbursements for merchandise purchases for December.
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: a. As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances: Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 47,000 205,600 58,800 357,000 $ 87,225 500,000 81,175 $ 668,400 $ 668,400 b. Actual sales for December and budgeted sales for the next four months are as follows: December(actual) January February March $ 257,000 $ 392,000 $ 589,000 $ 303,000 $ 200,000 April c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. d. The company's gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.) e.…
What about preparing a schedule of expected cash disbursement for merchandise purchases, by month and the total and budgeted income statement for the three-month period ending June 30.
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%…

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