Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Data Table X . . ec . . October sales are projected to be $380,000 Sales are projected to increase by 15% in November and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Data Table X . . ec . . October sales are projected to be $380,000 Sales are projected to increase by 15% in November and another 25% in December and then return to the October level in January 30% of sales are made in cash while the remaining 70% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 4% transaction fee and deposit the net amount (sales price less the transaction fee) in the store's bank account daily. The store does not accept checks. Because of the payment mechanisms there is no risk of non-payment or bad-debts. The store's gross profit is 30% of its sales revenue. For the next several months the store wants to maintain an ending merchandise inventory equal to $17.000 plus 20% of the next month's cost of goods sold. All purchases for merchandise are made on account and paid in the month following the purchase The September 30 inventory is expected to be $70.200. Expected monthly operating expenses and details about payments include the following Nages of store workers should be 57 100 per month and are paid on the last day of each month Utilities expense is expected to be $1 300 per month in September October, and November . and py as Budge to the ne Print Done . . . . Wages of store workers should be $7,100 per month and are paid on the last day of each month. Utilities expense is expected to be $1,300 per month in September, October, and November Utilities expense is expected to be $1,700 per month during the colder months of December, January, and February All utility bills are paid the month after incurred Property tax is $26.400 per year and is paid semiannually each December and June Property and liability insurance is $10,800 per year and is paid semiannually each January and July Depreciation expense is $132.000 per year the straight-line method used Transaction fees, as stated earlier, are 4% of credit and debit card sales Cash dividends of $200,000 are to be paid in December Assume the cash balance on October 31 is $45,000 The company wants to maintain a cash balance of at least $45,000 at the end of every month. The company has arranged a line of credit with a local bank at a 4% interest rate There is no outstanding debt as of October 31. . . . . he ne Print Done Dollar Plus Store is a local discount store with the following information Click the icon to view the information.) Read the requirements Requirement 1. Prepare the sales budget for November and December Dollar Plus Store Sales Budget For the Months of November and December November December Cash sales 131,100 157 875 Credit sales 305,900368,375 437,000 526 250 Total sales Requirement 2. Prepare the cost of goods sold inventory, and purchases budget for November and December Dollar Plus Store Cost of Goods Sold, Inventory, and Purchases Budget Enter any number in the edit fields and then continue to the next question Dollar Plus Store is a local discount store with the following information: Click the icon to view the information) Read the requirements Dollar Plus Store Cost of Goods Sold, Inventory, and Purchases Budget For the Months of November and December November December Cost of goods sold 305 900 368375 Plus Desired ending Inventory 90675 56900 Total inventory required 362800 425275 Less Beginning inventory 62886 90675 Purchases 299915 334600 Requirement 3. Prepare the operating expense budget for November and December Dollar Plus Store Cash Payments for Operating Expenses Budget Enter any number in the edited and then continue to the next question Dollar Plus Store is a local discount store with the following information (Click the icon to view the information ) Read the requirements. Cash Payments for Operating Expenses Budget For the Months of November and December November December Wage expense 7 100 7100 Utilities expense 1300 M70 Property tax expense 2200 2200 Property and liability insuranse expense 900 900 Depreciation expense 11000 12.000 Credit/Debit card fees expense 12236 14735 34736 37235 Total operating expenses Requirement 4. Prepare the budgeted income statement for November and December Review the budgets prepared in Requirements 1 2 and 3 Enter any number in the edit fields and then continue to the next question Dollar Plus Store is a local discount store with the following information: (Click the icon to view the information.) Read the requirements Dollar Plus Store Budgeted Income Statement For the Months of November and December November Sales revenue December 526.250 437,000 305900 1368375 Less: Cost of goods sold Gross profit 131100 34736 157875 37235 Less Operating expenses Net income 96364 120640 Requirement 5. Prepare the cash collections budget for November and December Review the sales budget prepared in Requirement1 Dollar Plus Enter any number in the edit Melds and then continue to the next question Dollar Plus Store is a local discount store with the following information (Click the icon to view the information) Read the reguitements For the Months of November and December November December Cash sales 131.100 157 875 Credit sal net of fees 305 900 368 375 437 000 526250 Total cash collections Requirement . Prepare the cash payments budget for November and December it na canh payment is made, make sure to cheer to in the appropriate calls Review the budgets prepared in Requiremento 1.2 and Dollar Plus Cash Payments for Operating Expenses Budget For the Months of November and December November December Purchases of inventory 30 day lag Emery number in the edities and then continue to the Dollar Plus Store is a local discount store with the following information (Click the icon to view the information) Read the reguitements For the Months of November and December November December Cash sales 131.100 157 875 Credit sal net of fees 305 900 368 375 437 000 526250 Total cash collections Requirement . Prepare the cash payments budget for November and December it na canh payment is made, make sure to cheer to in the appropriate calls Review the budgets prepared in Requiremento 1.2 and Dollar Plus Cash Payments for Operating Expenses Budget For the Months of November and December November December Purchases of inventory 30 day lag Emery number in the edities and then continue to the Dollar Plus Store is a local discount store with the following information Click the icon to view the information) Read the requirements November December Purchases of inventory 30 day lag Cash payments for wages 7/100 7100 Cash payments forts 1300 1300 Cash payments for property taxes Cash payments for dividends 200.000 Property and liability insurance Total payments for ingen Requirement 7. Prepare the combined cash budget for November and December (Enter for any or amounts Use parentheses of a mission for negative cash balances and Rover the cash collections and cash payments budgets prepared in Parts and Dollar Plus Combined Cash Budget Emetany number in the extes and then contre to the bed guesson Dollar Plus Store is a local discount store with the following information: (Click the icon to view the information.) Read the requirements For the Months of November and December November December Beginning cash balance 45000 Plus Cash collections Total cash available Less Cash payments Ending cash balance before financing Financing Plus New borrowings Less Debt repayments Less Interest payments Ending cash balance Enter any number in the edit fields and then continue to the next

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