Question
Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $240,000 for November, $250,000 for December, and
Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $240,000 for November, $250,000 for December, and $230,000 for January. Collections are expected to be 45% in the month of sale, 52% in the month following the sale, and 3% uncollectible. The cost of goods sold is 75% of sales. The company desires an ending merchandise inventory equal to 25% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $59,000. The November beginning balance in the accounts payable account is $246,000.
Required: |
a. | Prepare a Schedule of Expected Cash Collections for November and December.
Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values.) |
caprice corp | ||
merchandise purchsaes budget | november | december |
budgeted cost of goods sold | ||
add or subtract begining or ending inventory? | ||
total needs | ||
add or subtract begining or ending inventory? | ||
required purchase | ||
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