Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the following question BeachCuddly, Inc produces a highly absorbent beach towel. They are working on the budgets for April, May, & June (Q2)

Please answer the following question
image text in transcribed
BeachCuddly, Inc produces a highly absorbent beach towel. They are working on the budgets for April, May, & June (Q2) and have for your help. The unit sales forecast for the next months is: The towels sell for $15 each. Traditionally, 20% of the sales are made in cash and the remaining 80% are made on store credit. The credit sales are collected 10% in the current month and 90% in the next month. march sales are budgeted at $275,000 BeachCuddly likes to maintain an ending inventory of finished goods of 15% of next month's projected sales forecast. Each towel cost BeachCuddly $7 to buy. Complete the following budgets. Sales budget (for April, May & June) Cash Receipts budget (June only) Determine the following balances: Sales revenue on the Q_2 pro-formal income statement Accounts Receivable amount on the June 30 balance sheet. COGS on the Pro-forma income statement

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions