Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help!! D. Tomlinson Retail seeks your assistance in developing cash and other budget information for May, June, and July. The store expects to have the

help!! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
D. Tomlinson Retail seeks your assistance in developing cash and other budget information for May, June, and July. The store expects to have the following balances at the end of April: Cash $ 102, 100 Accounts receivable 964,000 Inventories 594,000 Accounts payable 303,554 The firm follows these guidelines in preparing its budgets: - Sales. All sales are on credit with terms of 3/10,n/30. Tomlinson bills customers on the last day of each month. The firm books receivables at gross amounts and collects 60% of the billings within the discount period, 25% by the end of the month, and 9% by the end of the second month. The firm's experience suggests that 6% is likely to be uncollectible and is written off at the end of the third month Purchases and expenses. All purchases and expenses are on open account. The firm pays its payables over a 2-month period with 54% paid in the month of purchase. Each month's units of ending inventory should equal 110% of the next month's cost of sales. The cost of each unit of inventory is $40. Selling general, and administrative (SG&A) expenses, of which $2,600 is depreciation, equal 15% of the current month's sales. Actual and projected sales follow: Month March April May Dollars $ 804,000 822,000 810,000 Units 13,400 13,700 13,500 Month June July August Dollars $ 780,000 816,000 828,000 Units 13,000 13,600 13,800 . Purchases and expenses. All purchases and expenses are on open account. The firm pays its payables over a 2-month period with 54% paid in the month of purchase. Each month's units of ending inventory should equal 110% of the next month's cost of sales. The cost of each unit of inventory is $40. Selling, general, and administrative (SG&A) expenses, of which $2,600 is depreciation, equal 15% of the current month's sales. Actual and projected sales follow: Month March April May Dollars $ 804,000 822,000 810,000 Units 13,400 13,700 13,500 Month June July August Dollars Units $ 780,000 13,000 816,000 13,600 828,000 13,800 ces Required: 1. Prepare schedules showing budgeted merchandise purchases for May and June. 2. Prepare a schedule showing budgeted cash disbursements during June 3. Prepare a schedule showing budgeted cash collections during May. 4. Determine gross and net balances of accounts receivable on May 31 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare schedules showing budgeted merchandise purchases for May and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare schedules showing budgeted merchandise purchases for May and June. D. Tomlinson Retail Budgeted Merchandise Purchases May and June May June July 0 $ 0 $ 0 $ A Cost of Goods Sold $ o $ 0 Total needed $ 0 $ 0 Budgeted merchandise purchases Required 1 Required 2 Required 3 Required 4 Prepare a schedule showing budgeted cash disbursements during June. D. Tomlinson Retail Budgeted Cash Disbursements, June May + June 0 $ Total payables $ 0 Budgeted cash disbursements Required 1 Required 2 Required 3 Required 4 Prepare a schedule showing budgeted cash collections during May. D. Tomlinson Retail Cash Collections May Within the discount period After the discount period 0 Total cash collections Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine gross and net balances of accounts receivable on May 31. April March Total May Sales % % $ $ 0 Remaining AR % AR Balance (Gross) Bad-debt allowance AR Balance (Net) $

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

Return Jahrgang 2018 Magazin Fur Transformation Und Turnaround

Authors: Stefanie Burgmaier, Hans Haarmeyer, Thorsten Garber

3rd Edition

365825601X, 9783658256012

More Books

Students also viewed these Accounting questions