New New Corporation is a wholesaler of industrial goods. Dataregarding the store's operations follow:
-Sales are budgeted at $390,000 for November, $360,000 forDecember, and $340,000 for January.
-Collections are expected to be 85% in the month of sale, 10% inthe month following the sale, and 5% uncollectible.
-The cost of goods sold is 80% of sales.
-The company purchases 40% of its merchandise in the month priorto the month of sale and 60% in the month of sale. Payment formerchandise is made in the month following the purchase.
-The November beginning balance in the accounts receivableaccount is $77,000.
-The November beginning balance in the accounts payable accountis $320,000.
1. Please Prepare a schedule of expected cashcollections for November and December.
2. Please Prepare a merchandise purchasesbudget for November and December.
New New Corporation is a wholesaler of industrial goods. Dataregarding the store's operations follow:
-Sales are budgeted at $390,000 for November, $360,000 forDecember, and $340,000 for January.
-Collections are expected to be 85% in the month of sale, 10% inthe month following the sale, and 5% uncollectible.
-The cost of goods sold is 80% of sales.
-The company purchases 40% of its merchandise in the month priorto the month of sale and 60% in the month of sale. Payment formerchandise is made in the month following the purchase.
-The November beginning balance in the accounts receivableaccount is $77,000.
-The November beginning balance in the accounts payable accountis $320,000.
1. Please Prepare a schedule of expected cashcollections for November and December.
2. Please Prepare a merchandise purchasesbudget for November and December.
Related questions
Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
Sales are budgeted at $260,000 for November, $270,000 for December, and $250,000 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 60% of sales.
The company 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 $61,000.
The November beginning balance in the accounts payable account is $248,000.
Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.
Prepare a Schedule of Expected Cash Collections for November and December.
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Prepare a Merchandise Purchases Budget for November and December.
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