Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
Sales are budgeted at $370,000 for November, $380,000 for December, and $360,000 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 70% 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 $72,000.
The November beginning balance in the accounts payable account is $259,000.
Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.
Required B
Prepare a Merchandise Purchases Budget for November and December.
Merchandise Purchases Budget November December Cost of goods sold Total needs Required purchases
Prepare a Schedule of Expected Cash Collections for November and December.
November December Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections
Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
Sales are budgeted at $370,000 for November, $380,000 for December, and $360,000 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 70% 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 $72,000.
The November beginning balance in the accounts payable account is $259,000.
Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.
Required 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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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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