72. 3.00 points Time remaining 0.560 al upgrade Kevin Montgomery Retail seeks your assistance to develop cash and other budget information for May June had cash or $5.500, accounts receivable of 5 7000 inventories of 4.250, and accounts payable the fowowing assumptions SALES: 30, the company the budget to be based on then Each month's soles are billed on the last day of the month. Customers are allowed a 3% discount f payment is made within 10 days after the bing date. Receivables are recorded in the accounts at their gross amounts (not net of discounts). 55% of the brings are collected within the discount period; 30% are collected by the end of the month: 9% are collected by the end of the second months and 6x turn out to be uncollectible. PURCHASES: The marketing, general, and administrative expenses and 60% of all purchases of merchandise are paid in the month purchased, with the remainder of merchandise purchases paid in the following month. The number of units in each month's ending inventory is equal to 125% of the next month's units of sales. The cost of each unit of inventory is $30. Marketing. general, and administrative expenses, of which $3,000 is depreciation, are equal to 15% of the current month's sales. Actual and projected sales are as shown below: Dollars March April May Units 11,800 12.100 11.900 11,400 12,000 12,200 $472,000 $484,000 $476,000 $456,000 $480,000 $480,000 ne gust e the budgeted merchandise purchases (in dollars) for June? 375,000 Each month's sales are billed on the last day of the monthlon o w i scount paymemade WMO bing date. Receivables are recorded in the count e gro mo n otnet of discounts). So the wings are con discount period: 30% are collected by the end of the month:9% are collected by the end of the second month, and 6% turn on uncollectible. PURCHASES: The marketing, general, and administrative expenses and 60% of all purchases of merchandise are paid in the month purch remainder of merchandise purchases pald in the following month. The number of units in each month's ending Inventory is next month's units of sales. The cost of each unit of inventory is $30. Marketing, general, and administrative expenses, of depreciation, are equal to 15% of the current month's sales. Actual and projected sales are as shown below: March April May June July August Dollars $472.000 $484,000 $ 476,000 $456,000 $480,000 $480,000 Units 11,800 12,100 11,900 11,400 12,000 12,200 What are the budgeted merchandise purchases (in dollars) for June? 0 0 $375,000 $342,000. 0 $319,500. 0 $364,500
