Question
Hello, can I get assistance with the following budgets, please? I'm not understanding the calculations. Thank you Mamie Earle, Inc. sells art supplies.The sales forecast
Hello, can I get assistance with the following budgets, please? I'm not understanding the calculations. Thank you
Mamie Earle, Inc. sells art supplies.The sales forecast for the coming months is:
Revenues
April $250,000
May $275,000
June $300,000
July $350,000
August $350,000
Mamie Earle's sales are 70% cash and 30% store credit. The credit sales are collected 60% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $32,000.
Mamie Earle's cost of sales averages 65% of revenues. The inventory policy is to carry 40% of next month's sales needs. April 1 inventory will be as expected under the policy.Mamie Earle pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $125,000.
a. Assist with a purchases budget for the months of April, May, June.
b. Assist with a cash payments budget for April, May, June..
c. Assist with a cash receipts budget for April, May, June.
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