Question
Information pertaining to Yekstop Corp.'s sales revenue is presented below: NovemberDecemberJanuary Cash sales $109,000$138,000$91,000 Credit sales301,000463,000247,000 Total sales $410,000$601,000$338,000 Management estimates that 3% of credit
Information pertaining to Yekstop Corp.'s sales revenue is presented below:
NovemberDecemberJanuary
Cash sales $109,000$138,000$91,000
Credit sales301,000463,000247,000
Total sales $410,000$601,000$338,000
Management estimates that 3% of credit sales are eventually uncollectible. Of the collectible credit sales, 60% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 80% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 55% of the selling prices.
Budgeted cash payments in December for November inventory purchases by Yekstop Corp. are:
- $77,332.
- $92,862.
- $123,000.
- $157,850.
- $216,678.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started