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Please help me get the correct answer to the submissions marked incorrect with the red X Purchases and Cash Budgets On July 1, MTC Wholesalers
Please help me get the correct answer to the submissions marked incorrect with the red X
Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $175,000 and accounts payable of $99,000. Actual sales for May and June, and budgeted sales for July, August, September, and October are Month Actual Sales Month Budgeted Sales $90,000 80,000 100,000 120,000 ay 150,000 July June 160,000 August September October All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent of sales revenue. Ending inventory is one-half of the next month's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in the month after purchase. Operating costs are estimated at $28,000 each month and are paid during the month incurred Required Prepare purchases and cash budgets for July, August, and September Do not use a negative sign with your answers. MTC Wholesalers Purchases Budget For the Months of July, August, and September July August September Inventory required, current sas63,000 56,000 70,000 Desired ending inventory 28,000 35,000 2,000 Total inventory needs 91,000 91,000 12,000 Less beginning inventory 31,500 28,000 35,000 Purchases 59,50063,00077,000Step by Step Solution
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