Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you help me with the attached accounting problem.? Need help starting from 2nd table cash budge t where it begins cash balance, beginning for

Can you help me with the attached accounting problem.?

Need help starting from 2nd table cash budget where it begins cash balance, beginning for july aug and sept

then curent month's sales

previous months' sales and all the rest.ending with cash balance ending.

Thank you,

Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $87,500 and accounts payable of $49,500. Actual sales for May and June, and budgeted sales for July, August, September, and October are:

Month Actual Sales Month Budgeted Sales
May $75,000 July $ 45,000
June 80,000 August 40,000
September 50,000
October 60,000

All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent of sales revenue. Ending inventory is one-half of the next month's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in the month after purchase. Operating costs are estimated at $14,000 each month and are paid during the month incurred.

Required Prepare purchases and cash budgets for July, August, and September.

Do not use a negative sign with your answers.

MTC Wholesalers
Purchases Budget
For the Months of July, August, and September
July August September
Inventory required, current sales $Answer

$Answer

$Answer

Desired ending inventory Answer

Answer

Answer

Total inventory needs Answer

Answer

Answer

Less beginning inventory Answer

Answer

Answer

Purchases $Answer

$Answer

$Answer

Do not use a negative sign with your answers.

MTC Wholesalers
Cash Budget
For the Months of July, August, and September
July August September
Cash balance, beginning $Answer

$Answer

$Answer

Cash receipts
Current month's sales Answer

Answer

Answer

Previous month's sales Answer

Answer

Answer

Sales two months prior Answer

Answer

Answer

Total receipts Answer

Answer

Answer

Cash available Answer

Answer

Answer

Cash disbursements:
Purchases Answer

Answer

Answer

Operating costs Answer

Answer

Answer

Total disbursements Answer

Answer

Answer

Cash balance, ending $Answer

$Answer

$Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

=+appropriate for the information required?

Answered: 1 week ago

Question

3. Give examples of four fair disciplinary practices.

Answered: 1 week ago

Question

4. Explain how to use fair disciplinary practices.

Answered: 1 week ago