Question
Flathead Artifacts (a retailer) has the following sales budget for next year. Flathead has a gross margin % of 30%. Flathead sells everything on credit.
Flathead Artifacts (a retailer) has the following sales budget for next year. Flathead has a gross margin % of 30%. Flathead sells everything on credit. Accounts are expected to be collected as follows: 25% in the quarter of the sales; 65% in the quarter following the sale; 10% in the second quarter following the sale.
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | |
| Sales Revenue | $100,000 | $120,000 | $90,000 | $80,000 |
A. What is budgeted cost of goods sold for Quarter 3?
B. What is accounts receivable on the balance sheet at the end of Quarter 4?
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Winning Your Audit
Authors: Holmes F. Crouch
1st Edition
0945339151, 978-0945339151
