Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow Sales are budgeted at $430,000 for November, $440,000 for December, and

image text in transcribed
image text in transcribed
Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow Sales are budgeted at $430,000 for November, $440,000 for December, and $420,000 for January . Collections are expected to be 40% in the month of sale and 60% in the month following the sale. The cost of goods sold is 75% of sales. The company desires an ending merchandise inventory equal to 20% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $78,000. The November beginning balance in the accounts payable account is $265.000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December b. Prepare a Merchandise Purchases Budget for November and December. Complete this question by entering your answers in the tabs below. Required Required B Prepare a Schedule of Expected Cash Collections for November and December November December Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections Required B > Co Ch 10 Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow Sales are budgeted at $430,000 for November, $440,000 for December, and $420,000 for January Collections are expected to be 40% in the month of sale and 60% in the month following the sale The cost of goods sold is 75% of sales. The company desires an ending merchandise inventory equal to 20% of the cost of goods sold in the followin for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $78,000 The November beginning balance in the accounts payable account is $265.000 Required: a. Prepare a Schedule of Expected Cash Collections for November and December b. Prepare a Merchandise Purchases Budget for November and December Complete this question by entering your answers in the tabs below. Required A Required Prepare a Merchandise Purchases Budget for November and December November December Merchandise Purchases Budget Cost of goods sold Total needs 00 Roquine $ 0 $ 0

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

Students also viewed these Accounting questions

Question

Journal entry worksheet

Answered: 1 week ago