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Bame Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm's marketing director, has
Bame Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm's marketing director, has completed the followong sales forecast. Prepare the cash receipts budget for the second quarter. Davis, Managerial Accounting, 3e Help System Announcements CALCULATOR FRINTE VERSION BACK NEXT Question 2 Bramble Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm's marketing director, has completed the following sales forecast Month January February March April May June Sales 5909,900 $1,007,900 $909,900 $1,156,800 $1,259,900 $1,405,100 Month July August September October November December Sales $1,507,400 $1,507,400 $1,606,300 $1,606,300 $1,507,400 $1,706,700 Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. He has gathered the following information . All sales are made on credit. Bramble's excellent record in accounts receivable collection is expected to continue, with 60% of bilings collected in the month after sale and the remaining 40% collected two months after the sale. Cost of goods sold, Bramble's largest expense, is estimated to equal 40% of sales dollars. Seventy percent of inventory is purchased one month prior to sale and 30% during the month of sale. For example, in April, 30% of April cost of goods sold is purchased and 70% of May cost of goods sold is purchased. All purchases are made on account. Historically, 75% of accounts payable have been paid during the month of purchase, and the remaining 25% in the month following purchase. Hourly wages and fringe benefits, estimated at 30% of the current month's sales, are paid in the month incurred. General and administrative expenses are projected to be $1,567,400 for the year. A breakdown of the expenses follows. All expenditures are paid monthly throughout the year, with the exception of property taxes, which are paid in four equal installments at the end of each quarter, Salaries and fringe benefits Advertising Property taxes Insurance Utilities Depreciation Total $ 320,300 378,100 141,100 197,600 181,200 349,100 $ 1,567,400 Show All 28 w Search or type URL
Bame Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm's marketing director, has completed the followong sales forecast.
Prepare the cash receipts budget for the second quarter.
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