Budgeting revenue, cost of goods sold, and gross margin. Janet Grossman operates the Centrum Gift $hop. $he expects cash sales of $12,000 for October, $13,200 for November, and $19,200 for December. Grossman expects credit card sales of $8,400 during October and

$9,600 and $14,400, respectively, during November and December. Sales returns and allowances can be ignored. Credit card companies such as VISA and MasterCard charge 4%

on credit card sales, so Centrum’s net sales will be 96%. Cost of goods sold averages 40% of 226 CHAPTER 6 net sales.

Required Grossman asks you to prepare a schedule of budgeted revenue, cost of goods sold, and gross margin for each month of the last quarter. She also wants you to show totals for the quarter.