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Banquisse Wholesalers has asked you to prepare certain parts of a budget for the 3 rd quarter of the year. They have provided you with
Banquisse Wholesalers has asked you to prepare certain parts of a
budget for the rd quarter of the year.
They have provided you with the following data to help you prepare a budget:
Sales: Seling price per unit is $ # units
May Actual
June Actual
July Estimated
August Estimated
September Estimated
October Estimated
Monthly expenses are:
Salaries $
Depreciation
Utilities
Other
Property taxes
Collections
All sales are on account and the collection pattern is expected to be:
in the month of sale
in the month following sale
in the second month following sale.
The cost per unit is $ and the company wants ending inventory to be
equal to of the next month's requirements.
All inventory purchases are paid in the month following purchase.
Accounts payable is only used for merchandise purchases.
Other expenses, except property taxes, are paid in the month incurred.
Dividends of $ will be declared and paid in September.
Annual property taxes of $ were paid on April st
REQUIRED: For the rd quarter July through September:
You will need to do the following for each month and the
quarter in total unless instructed differently.
Prepare a cash collection budget.
Calculate net accounts receivable at September
Prepare a purchases budget. Assume the # of units in inventory
at July was
Calculate the balance in prepaid property taxes at September
Calculate the dollar value of September inventory.
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