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Purchases and Cash Budgets On July 1 , MTC Wholesalers had a cash balance of $ 1 7 5 , 0 0 0 and accounts
Purchases and Cash Budgets
On July MTC Wholesalers had a cash balance of $ and accounts payable related to inventory purchases of $ Actual sales for May and June, and budgeted sales for July, August, September, and October are:
Month Actual Sales Month Budgeted Sales
May $ July $
June August
September
October
All sales are on credit with percent collected during the month of sale, percent collected during the next month, and percent collected during the second month following the month of sale. Cost of goods sold averages percent of sales revenue. Ending inventory is onehalf 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 $ 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 sales Answer
Answer
Answer
Desired ending inventory Answer
Answer
Answer
Total inventory needs Answer
Answer
Answer
Less beginning inventory Answer
Answer
Answer
Purchases Answer
Answer
Answer
Do not use a negative sign with your answers.
MTC Wholesalers
Cash Budget
For the Months of July, August, and September
July August September
Cash balance, beginning Answer
Answer
Answer
Cash receipts
Current month's sales Answer
Answer
Answer
Previous month's sales Answer
Answer
Answer
Sales two months prior Answer
Answer
Answer
Total receipts Answer
Answer
Answer
Cash available Answer
Answer
Answer
Cash disbursements:
Purchases Answer
Answer
Answer
Operating costs Answer
Answer
Answer
Total disbursements Answer
Answer
Answer
Cash balance, ending Answer
Answer
Answer
Purchases and Cash Budgets
On July MTC Wholesalers had a cash balance of $ and accounts payable related to inventory purchases of $ Actual sales for May and June, and
budgeted sales for July, August, September, and October are:
All sales are on credit with percent collected during the month of sale, percent collected during the next month, and percent collected during the second
month following the month of sale. Cost of goods sold averages percent of sales revenue. Ending inventory is onehalf 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 $ 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.
Do not use a negative sign with your answers.
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