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A corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: • Sales are budgeted at $310,000 for November, $320,000 for December, and $300,000 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 60% of sales. • The company desires an ending merchandise inventory equal to 25% 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 $66,00. • The November beginning balance in the accounts payable account is $253,000. 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.

A corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: • Sales are budgeted at $310,000 for November, $320,000 for December, and $300,000 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 60% of sales. • The company desires an ending merchandise inventory equal to 25% 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 $66,00. • The November beginning balance in the accounts payable account is $253,000. 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.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 17E: Crescent Company produces stuffed toy animals; one of these is Arabeau the Cow. Each Arabeau takes...
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A corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: • Sales are budgeted at $310,000 for November, $320,000 for December, and $300,000 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 60% of sales. The company desires an ending merchandise inventory equal to 25% 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 $66,000. • The November beginning balance in the accounts payable account is $253,000. 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 Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections Required B >
Transcribed Image Text:A corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: • Sales are budgeted at $310,000 for November, $320,000 for December, and $300,000 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 60% of sales. The company desires an ending merchandise inventory equal to 25% 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 $66,000. • The November beginning balance in the accounts payable account is $253,000. 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 Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections Required B >
corporation is a wholesaler of industrial goods. Data regarding the store's opera • Sales are budgeted at $310,000 for November, $320,000 for December, and Collections are expected to be 45% in the month of sale and 55% in the mon • The cost of goods sold is 60% of sales. • The company desires an ending merchandise inventory equal to 25% of the d for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $66,0 • The November beginning balance in the accounts payable account is $253,0C 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 November December Total needs Required purchases < Required A
Transcribed Image Text:corporation is a wholesaler of industrial goods. Data regarding the store's opera • Sales are budgeted at $310,000 for November, $320,000 for December, and Collections are expected to be 45% in the month of sale and 55% in the mon • The cost of goods sold is 60% of sales. • The company desires an ending merchandise inventory equal to 25% of the d for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $66,0 • The November beginning balance in the accounts payable account is $253,0C 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 November December Total needs Required purchases < Required A
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