Nordic Company Balance Sheet March 31, 2020 Assets Cash Accounts Receivable Inventory Buildings & equipment (net) $13,500 $72,000 $18,900 $321,150 $425,550 Total Assets $27,450 Liabilities & Owners' Equity Liabilities Accounts Payable Owners' Equity Capital Stock Retained earnings Total liab. & Owners' equity IMPORTANT instructions! When entering your answers, make sure you format them in WITHOUT the $. For example: $285,000 $113,100 $425,550 Clue #4- Merchandise Purchases Budget The company's gross margin percentage is 40% of sales (i.e. cost of goods sold is 60% of sales).. Each month's inventory should equal 30% of the following month's cost of goods sold Beginning inventory has been given to you. What are total required purchases for June? A/ View hint for Question 5 Clue #5 - Cash Disbursements for Purchases Half of a month's inventory purchases are paid for in the month of purchase and half in the following month. Accounts payable for March 31 have been given to you. What are total expected cash disbursements for purchase of inventory for the month of June? D View hint for Question 6 The company's gross margin percentage is 40% of sales (.e. cost of goods sold is 60% of sales). Each month's inventory should equal 30% of the following month's cost of goods sold. Beginning inventory has been given to you. What are total required purchases for June? A/ Hide hint for Question 5 Hint #1: Ending inventory for Month #1 is equal to the beginning inventory for Month #2. Hint #2: Total inventory needs budgeted cost of goods sold plus desired ending inventory. Hint #3: Check figure: Required purchases for May $77,850. Clue #5- Cash Disbursements for Purchases Half of a month's inventory purchases are paid for in the month of purchase and half in the following month. Accounts payable for March 31 have been given to you. What are total expected cash disbursements for purchase of inventory for the month of June? AJ Hide hint for Question 6 Hint #1: Carefully consider the timing of the cash payments and which amounts get paid in each month of the quarter. Hint #2: All accounts payable are paid for in the month following their occurrence. This is a 30 day payment policy. Hint #3: Check figure: May Cash Disbursements $72,450. Nordic Company Balance Sheet March 31, 2020 Assets Cash Accounts Receivable Inventory Buildings & equipment (net) $13,500 $72,000 $18,900 $321,150 $425,550 Total Assets $27,450 Liabilities & Owners' Equity Liabilities Accounts Payable Owners' Equity Capital Stock Retained earnings Total liab. & Owners' equity IMPORTANT instructions! When entering your answers, make sure you format them in WITHOUT the $. For example: $285,000 $113,100 $425,550 Clue #4- Merchandise Purchases Budget The company's gross margin percentage is 40% of sales (i.e. cost of goods sold is 60% of sales).. Each month's inventory should equal 30% of the following month's cost of goods sold Beginning inventory has been given to you. What are total required purchases for June? A/ View hint for Question 5 Clue #5 - Cash Disbursements for Purchases Half of a month's inventory purchases are paid for in the month of purchase and half in the following month. Accounts payable for March 31 have been given to you. What are total expected cash disbursements for purchase of inventory for the month of June? D View hint for Question 6 The company's gross margin percentage is 40% of sales (.e. cost of goods sold is 60% of sales). Each month's inventory should equal 30% of the following month's cost of goods sold. Beginning inventory has been given to you. What are total required purchases for June? A/ Hide hint for Question 5 Hint #1: Ending inventory for Month #1 is equal to the beginning inventory for Month #2. Hint #2: Total inventory needs budgeted cost of goods sold plus desired ending inventory. Hint #3: Check figure: Required purchases for May $77,850. Clue #5- Cash Disbursements for Purchases Half of a month's inventory purchases are paid for in the month of purchase and half in the following month. Accounts payable for March 31 have been given to you. What are total expected cash disbursements for purchase of inventory for the month of June? AJ Hide hint for Question 6 Hint #1: Carefully consider the timing of the cash payments and which amounts get paid in each month of the quarter. Hint #2: All accounts payable are paid for in the month following their occurrence. This is a 30 day payment policy. Hint #3: Check figure: May Cash Disbursements $72,450