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Garden Sales, Incorporated, usually has to borrow money during the second quarter to support peak sales of lawn care equipment during May. It gathered the
Garden Sales, Incorporated, usually has to borrow money during the second quarter to support peak sales of lawn care equipment during May. It gathered the following information to prepare a cash budget for the quarter: Budgeted monthly absorption costing income statements for AprilJuly are: April May June July Sales $ $ $ $ Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Total selling and administrative expenses Net operating income $ $ $ $ Includes $ of depreciation each month. Sales are for cash and on account. Sales on account are collected over a threemonth period with collected in the month of sale, collected in the first month following the month of sale, and the remaining collected in the second month following the month of sale. Februarys sales totaled $ and Marchs sales totaled $ Inventory purchases are paid for within days. Therefore, of a months inventory purchases are paid for in the month of purchase. The remaining are paid in the following month. Accounts payable at March for inventory purchases during March total $ Each months ending inventory must equal of the cost of the merchandise to be sold in the following month. The merchandise inventory at March is $ Dividends of $ will be declared and paid in April. Land costing $ will be purchased for cash in May. The cash balance at March is $; the company must maintain a cash balance of at least $ at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $ at the beginning of each month, up to a total loan balance of $ The interest rate on these loans is per month, and for simplicity we will assume interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. The companys president is interested in knowing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory assumptions as follows: Sales continue to be for cash and on credit. However, credit sales from April, May, and June are collected over a threemonth period with collected in the month of sale, collected in the month following sale, and in the second month following sale. Credit sales from February and March are collected during the second quarter using the collection percentages specified in the main section. The company maintains its ending inventory levels for April, May, and June at of the cost of merchandise to be sold in the following month. The merchandise inventory at March remains $ and accounts payable for inventory purchases at March remains $ Required: Using the presidents new assumptions in a above, prepare a schedule of expected cash collections for April, May, and June and for the quarter in total. Using the presidents new assumptions in b above, prepare the following for merchandise inventory: A merchandise purchases budget for April, May, and June. A schedule of expected cash disbursements for merchandise purchases for April, May, and June and for the quarter in total. Using the presidents new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total. could you add all the tables in too?
Garden Sales, Incorporated, usually has to borrow money during the second quarter to support peak sales of lawn care equipment during May. It gathered the following information to prepare a cash budget for the quarter:
Budgeted monthly absorption costing income statements for AprilJuly are:
April May June July
Sales $ $ $ $
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling expense
Administrative expense
Total selling and administrative expenses
Net operating income $ $ $ $
Includes $ of depreciation each month.
Sales are for cash and on account.
Sales on account are collected over a threemonth period with collected in the month of sale, collected in the first month following the month of sale, and the remaining collected in the second month following the month of sale. Februarys sales totaled $ and Marchs sales totaled $
Inventory purchases are paid for within days. Therefore, of a months inventory purchases are paid for in the month of purchase. The remaining are paid in the following month. Accounts payable at March for inventory purchases during March total $
Each months ending inventory must equal of the cost of the merchandise to be sold in the following month. The merchandise inventory at March is $
Dividends of $ will be declared and paid in April.
Land costing $ will be purchased for cash in May.
The cash balance at March is $; the company must maintain a cash balance of at least $ at the end of each month.
The company has an agreement with a local bank that allows the company to borrow in increments of $ at the beginning of each month, up to a total loan balance of $ The interest rate on these loans is per month, and for simplicity we will assume interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.
The companys president is interested in knowing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory assumptions as follows:
Sales continue to be for cash and on credit. However, credit sales from April, May, and June are collected over a threemonth period with collected in the month of sale, collected in the month following sale, and in the second month following sale. Credit sales from February and March are collected during the second quarter using the collection percentages specified in the main section.
The company maintains its ending inventory levels for April, May, and June at of the cost of merchandise to be sold in the following month. The merchandise inventory at March remains $ and accounts payable for inventory purchases at March remains $
Required:
Using the presidents new assumptions in a above, prepare a schedule of expected cash collections for April, May, and June and for the quarter in total.
Using the presidents new assumptions in b above, prepare the following for merchandise inventory:
A merchandise purchases budget for April, May, and June.
A schedule of expected cash disbursements for merchandise purchases for April, May, and June and for the quarter in total.
Using the presidents new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total.
could you add all the tables in too?
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