Charter Company is preparing their budget for the 1st quarter of 2012. The following data is provided Inventory, Purchases and COGS Budget Jan Feb Mar Cost of goods sold (a) $30,000 $28,500 $22,500 Desired ending inventory(b) 10,700 9,500 9,800 40,700 38,000 32,300 (11,000) (10,700) (9,5007 Total inventory required less Beginning inventory Purchases (a) COGS = 75% of sales 6) $5,000 + 20% of COGS for next month 29,700 27,300 22,800 For the budgeted balance sheet at March 31, what amount should be shown for Inventory? $9,500 $10,700 $8,750 $9,800 When a company is preparing a budgeted statement of cash flows and they wish to calculate the collections from customers, they should refer to which of the following? Budgeted cash payments for purchases Sales budget Budgeted cash collections Budgeted balance sheet Fast Foods has budgeted sales for June and July at $520,000 and $480,000, respectively. Sales are 80% credit, of which 50% is collected in the month of sale and 50% is collected in the following month. What is the accounts receivable balance on July 31? $192,000 $240,000 $384.000 $400,000 Purchases for May were $100,000, while expected purchases for June and July are $110,000 and $125,000, respectively. All purchases are paid 25% in the month of purchase and 75% the following month. At what amount are June payments for purchases budgeted? $102,500 $107,500 $110,000 $121,250