Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required information KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. Sales Cost of sales Gross margin Operating expenses Operating income May (actual) $45,000 $20,000 $25,000 $19,000 $5,000 June (budget) $46,000 $21.000 $21,000 $19,000 $1,000 July (budget) $49,000 $23,500 $21,500 $19,000 $1,500 Sales are collected 75% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the purchase. The operating expenses are paid in the month of the sale.

Required information KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. Sales Cost of sales Gross margin Operating expenses Operating income May (actual) $45,000 $20,000 $25,000 $19,000 $5,000 June (budget) $46,000 $21.000 $21,000 $19,000 $1,000 July (budget) $49,000 $23,500 $21,500 $19,000 $1,500 Sales are collected 75% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the purchase. The operating expenses are paid in the month of the sale.

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 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
See similar textbooks
icon
Related questions
icon
Concept explainers
Question

Please do not give solution in image format thanku 

Required information KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. Sales Cost of sales Gross margin Operating expenses Operating income May (actual) $45,000 $20,000 $25,000 $19,000 $5,000 June (budget) $46,000 $21,000 $21,000 $19,000 $1,000 July (budget) $49,000 $23,500 $21,500 $19,000 $1,500 Sales are collected 75% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the purchase. The operating expenses are paid in the month of the sale. part 2: What should be the amount of cash collected during the month of June? What should be the cash disbursements during the month of June for goods purchased for resale and for operating expenses?
Transcribed Image Text:Required information KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. Sales Cost of sales Gross margin Operating expenses Operating income May (actual) $45,000 $20,000 $25,000 $19,000 $5,000 June (budget) $46,000 $21,000 $21,000 $19,000 $1,000 July (budget) $49,000 $23,500 $21,500 $19,000 $1,500 Sales are collected 75% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the purchase. The operating expenses are paid in the month of the sale. part 2: What should be the amount of cash collected during the month of June? What should be the cash disbursements during the month of June for goods purchased for resale and for operating expenses?
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
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS