i cant seem to figure out how the AP Balance was calculated. it says the answers are 4,264, 4264, and 4784 but im not sure how to calculate that
Explanation: Prior month's purchase data is not given, But question has provide info of A/P, hence it is assumed that all this 6000 pertains to Credit purchase of last month Also same applies for Credit Sales of last month, but A?R is given 10,000 hence assumed all this 10000 is related to credit sales of last month Product Cost and Inventory Information The product cost is $13 per unit. The desired ending inventory is 40% of the next month's sales in units. Inventory in units for March 31:360 units Purchases are paid 60% in the month of the purchase and 40% the next month. The Accounts Payable Balance on March 31 is $6,000 Operating Expense Information Commission - ( 5% of Sales) Shipping - (1\% of Sales) Office Salaries - $2000 per month Rent Expense - $2500 per month Depreciation Expense - $1500 per month Prepare the following budgets for the months of April, May and June (2nd Q tr Total Budget) (You must use excel to format the budgets) a) Sales Budget b) Table of Cash Receipts c) Merchandise Purchase Budget d) Table of cash disbursement for Purchase of merchandise (Product Cost) e) Table of cash disbursements for selling and administrative expenses HINT: Cash Disbursements - means cash going out Explanation: Prior month's purchase data is not given, But question has provide info of A/P, hence it is assumed that all this 6000 pertains to Credit purchase of last month Also same applies for Credit Sales of last month, but A?R is given 10,000 hence assumed all this 10000 is related to credit sales of last month Product Cost and Inventory Information The product cost is $13 per unit. The desired ending inventory is 40% of the next month's sales in units. Inventory in units for March 31:360 units Purchases are paid 60% in the month of the purchase and 40% the next month. The Accounts Payable Balance on March 31 is $6,000 Operating Expense Information Commission - ( 5% of Sales) Shipping - (1\% of Sales) Office Salaries - $2000 per month Rent Expense - $2500 per month Depreciation Expense - $1500 per month Prepare the following budgets for the months of April, May and June (2nd Q tr Total Budget) (You must use excel to format the budgets) a) Sales Budget b) Table of Cash Receipts c) Merchandise Purchase Budget d) Table of cash disbursement for Purchase of merchandise (Product Cost) e) Table of cash disbursements for selling and administrative expenses HINT: Cash Disbursements - means cash going out