Case

Corner Shoppe is a local convenience store with the following information:

	October sales were $200,000.
	Sales are projected to go up by 20% in November (from the October sales) and another 10% in December (from the November sales) and then return to the October level in January.
	25% of sales are made in cash, while the remaining 75% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 2% transaction fee, and deposit the net amount (sales price less the transaction fee) in the store's bank account daily.
	Case Corner Shoppe's gross profit is 40% of its sales revenue.
	For the next several months, the store wants to maintain an ending merchandise inventory equal to $5,000 + 15% of the next month's cost of goods sold. The September 30 inventory was $23,000.
	Expected monthly operating expenses include:
		Wages of store workers are $8,700 per month
		Utilities expense of $1,600 in November and $2,200 in December
		Property tax expense of $2,000 per month
		Property and liability insurance expense of $1,000 per month
		Depreciation expense of $6,500 per month
		Transaction fees, as stated above, are 2% of credit and debit card sales

Prepare the following budgets for November and December:
1.	Sales budget
2.	Cost of goods sold, inventory, and purchases budget
3.	Operating expense budget
4.	Budgeted income statement

Requirement 1. Prepare the sales budget for

November

and

December.

Case Corner Shoppe
Sales Budget
For the Months of November and December
	November	December
Cash sales
Credit sales
Total sales

Requirement 2. Prepare the cost of goods sold, inventory, and purchases budget for

November

and

December.

Case Corner Shoppe
Cost of Goods Sold, Inventory, and Purchases Budget
For the Months of November and December
	November	December
Cost of goods sold
Plus: Desired ending inventory
Total inventory required
Less: Beginning inventory
Purchases

Requirement 3. Prepare the operating expense budget for

November

and

December.

Case Corner Shoppe
Operating Expenses Budget
For the Months of November and December
	November	December
Wage expense
Utilities expense
Property tax expense
Property and liability insuranse expense
Depreciation expense
Credit/Debit card fees expense
Total operating expenses

Requirement 4. Prepare the budgeted income statement for

November

and

December.

(Use the traditional format).

Case Corner Shoppe
Budgeted Income Statement
For the Months of November and December
	November	December
Sales revenue
Less: Cost of goods sold
Gross profit
Less: Operating expenses
Net income

Question Help O Requirements Case Corner Shoppe is a local convenience store with the following information: : (Click the icon to view the information.) Read the requirements Prepare the following budgets for November and December: 1. Sales budget 2. Cost of goods sold, inventory, and purchases budget 3. Operating expense budget 4. Budgeted income statement Requirement 1. Prepare the sales budget for November and December. Case Corner Shoppe Sales Budget For the Months of November and December Print Done November December Cash sales Credit sales Total sales Requirement 2. Prepare the cost of goods sold, inventory, and purchases budget for November and December Case Corner Shoppe Cost of Goods Sold, Inventory, and Purchases Budget For the Months of November and December November December Cost of goods sold Plus: Desired ending inventory Total inventory required October sales were $200,000. Sales are projected to go up by 20% in November (from the October sales) and another 10% in December (from the November sales) and then return to the October level in January. 25% of sales are made in cash, while the remaining 75% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 2% transaction fee, and deposit the net amount (sales price less the transaction fee) in the store's bank account daily. Case Corner Shoppe's gross profit is 40% of its sales revenue. For the next several months, the store wants to maintain an ending merchandise inventory equal to $5,000 + 15% of the next month's cost of goods sold. The September 30 inventory was $23,000. Expected monthly operating expenses include: Wages of store workers are $8,700 per month Utilities expense of $1,600 in November and $2,200 in December Property tax expense of $2,000 per month Property and liability insurance expense of $1,000 per month Depreciation expense of $6,500 per month Transaction fees, as stated above, are 2% of credit and debit card sales Less: Beginning inventory Purchases Enter any number in the edit fields and then continue to the next question. Print Done Save for Later