Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please solve the last 4 sections Haas Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a
Please solve the last 4 sections
Haas Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2015. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks Required a. & b. October sales are estimated to be $250,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 8 percent per month. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a sales budget and a schedule of cash receipts. October NovemberDecember Sales Budget Cash sales Sales on account Total budgeted sales $ 100,000$108,000 $ 116,640 174,960 $ 250,000 $ 270,000 291,600 150,000 162,000 Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections $ 100,000 $ 108,000 116,640 162,000 $ 100,000 $258,000 $278,640 150,000 c. & d. The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $12,000. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Assume that all purchases are made on account. Prepare an inventory purchases budget and a cash payments budget for inventory purchases. (Round your answers to the nearest whole dollar amount.) October November December Inventory Purchases Budget Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's accounts payable $ 116.340| $ Payment for prior month's accounts payable Total budgeted payments for inventory $ 150,000$ 162,000$174,960 12,000 186,960 17,496 $ 166,200 $ 163,296 $ 169,464 17.496 179,496 16,200 16,200 166,200 118525 48,989 $ 116,340$ 164,167 $ 167,614 114.307| $ 49,860Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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