Question
I recently posted this and the boxes that are blank were wrong. Can someone please complete the incorrect boxes? Thank you. I attached the previous
I recently posted this and the boxes that are blank were wrong. Can someone please complete the "incorrect" boxes? Thank you. I attached the previous answer of the question, but it has incorrect ones.
Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $350,000 and accounts payable of $198,000. Actual sales for May and June, and budgeted sales for July, August, September, and October are:
Month | Actual Sales | Month | Budgeted Sales |
---|---|---|---|
May | $300,000 | July | $ 180,000 |
June | 320,000 | August | 160,000 |
September | 200,000 | ||
October | 240,000 |
All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent of sales revenue. Ending inventory is one-half of the next month's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in the month after purchase. Operating costs are estimated at $56,000 each month and are paid during the month incurred.
Required Prepare purchases and cash budgets for July, August, and September.
Do not use a negative sign with your answers.
MTC Wholesalers | ||||
---|---|---|---|---|
Purchases Budget | ||||
For the Months of July, August, and September | ||||
July | August | September | ||
Inventory required, current sales | $Answer Correct 1.00 points out of 1.00 | $Answer Correct 1.00 points out of 1.00 | $Answer Correct 1.00 points out of 1.00 | |
Desired ending inventory | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | |
Total inventory needs | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | |
Less beginning inventory | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | |
Purchases | $Answer Correct 1.00 points out of 1.00 | $Answer Correct 1.00 points out of 1.00 | $Answer Correct 1.00 points out of 1.00 |
Do not use a negative sign with your answers.
MTC Wholesalers | ||||
---|---|---|---|---|
Cash Budget | ||||
For the Months of July, August, and September | ||||
July | August | September | ||
Cash balance, beginning | $Answer Correct 1.00 points out of 1.00 | $Answer Incorrect 0.00 points out of 1.00 | $Answer Incorrect 0.00 points out of 1.00 | |
Cash receipts | ||||
Current month's sales | Answer Incorrect 0.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | |
Previous month's sales | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | |
Sales two months prior | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | |
Total receipts | Answer Incorrect 0.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | |
Cash available | Answer Incorrect 0.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | |
Cash disbursements: | ||||
Purchases | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | |
Operating costs | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | |
Total disbursements | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | |
Cash balance, ending | $Answer Incorrect 0.00 points out of 1.00 | $Answer Incorrect 0.00 points out of 1.00 | $Answer Incorrect 0.00 points out of 1.00 |
Cash Budget For the Months of July, August, and September Particulars August Septembe October $350,000 $578,000731,000 $1,659,000 Beginning cash balance Cash recepts: Current month's sales( 70% of current month's sales previous month's sales ( 20% of previous month's sales) sales two month's prior ( 5% of two month's pror sales) Total reciepts Total cash available Less cash disbursements: $126,000 $112,000 140,000 168,000 64,000 36,000 32,000 40,000 15,000 16,000 9,000 8,000 $ 205,000 164,000 181,000 $ 216,000 $760,000 906,000 $ 1,093,000 $2,091,000 Purchase of invento $198,000 $119,000126,000 56,000 56,000 56,000 $254,000 175,000 $182,000 $506,000 731,000 $911,000 Operating costs Total cash disbursements Cash balance, en din Purchase budget August Septembe October Sales Inventory required, current sales ( 70% of sales revenue Desired Ending inventory one-half of next month's predicted cost of sales Total inventory needs Less: Beginning invento 180,000 160,000 200,000 240,000 126,000 112,000 140,000 168,000 56,00070,000 182,000 182,000 56,000 119,000| 126,000 84,000 224,000 70,000 154,000 63,000 Purchases Cash disbursements for inventory purchase Paid in the month after purchase $198,000 $119,000 126,000 154,000 $198,000 119,000 $126,000 Cash disbursements for inventory purchase
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