Question
In the month during which the merchandise is purchased or the cost is incurred In the subsequent month 74% 268 PrimeTime Sportswear's income statement
In the month during which the merchandise is purchased or the cost is incurred In the subsequent month 74% 268 PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: Sales September $ 41,500 October $ 53,800 November $ 67,600 December $ 59,100 Cost of goods sold: Beginning inventory $ 5,870 Purchases 38,200 $ 14,180 43,800 Cost of goods available for sale $ 44,070 (14,180) Gross profit $ 29,890 $ 11,610 10,300 $ 37,850 $ 57,980 (20,130) $ 20,130 49,200 $ 69,330 (21,790) $ 47,540 $ 21,790 33,300 $ 55,090 (20,470) $ 34,620 $ 15,950 12,400 $ 20,060 14,300 $ 24,480 16,200 $ 1,310 Less: Ending inventory Cost of goods sold Operating expenses Operating income $ 3,550 $ 5,760 $ 8,280 Cash on hand August 31 is estimated to be $39,800. Collections of August 31 accounts receivable were estimated to be $16,510 in September and $15,330 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,400. Required: a-1. Prepare a cash budget for October and November. (Beginning cash should be indicated with a minus sign if it is a negative amount.)
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