Introduction to Management Accounting Chapter 7, problem 11 7th addition 1. Estimated sales for July, August, September, and October will be $210,000, 230,000, 220,000, and $240,000. 2. All sales are on credit and all credit sales are collected. Each months credit sales are collected at 45% in the month of sale and 55% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. 2b. Prepare a schedule of expected cash disburements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended 9/30. Merchandise Purchases Budget: Budgeted cost of goods sold $126,000 138,000 132,000

Add Desired EMInv. 27,600 26400 28800

Total needs 153,600 164,400 160,800

Less Beg. MInv. 62,000 27,600 26,400

Req. purchases 91,600 136.800 134,400

Prepare Schedule of Cash Disbursements for Purchases

Accts. Pay: July $71,100