purchases budget 7-34

N Netflix BAssignments Accountir X new doc 2017-11-1909.10.13 x new doc 2017-11-19 09.10.13 X new doc 2017-11-19 09.10.13 X C chegg Study | Guided Sox + -OX E) C & O https://elearning.sharjah.ac.ae/obcswebdav/pid-1029604-dt-content-rid-1514706_1/courses/0301215 ... O AQ Search y un 3 0 = e Getting Started Most Visited @ TripAdvisor TV / Events spread the word > Watch Friends Online... e Kris Gethin's 12-Week .. O Mail - Salaheddin Abd. Blackboard Learn t|1 1 of 1. - + Automatic Zoom = 3 e6 | S215,000; June, $220,000; July, $270,000; and August, $240,000. y ventarcus I, the end of each month as follows: May, Sales are expected to be June, $440,000; July, $350,000; and August, $420,000. Cost of goods sold is 60% of sales. D Purchases in April were $250,000; in May, S180,000. Payments for each month's purchases are made as follows: 10% during that month; 80% the next month; and the final 10% the next month. Prepare budget schedules for June, July, and August for purchases and for disbursements for purchases. 7-34 Purchases Budget Linkenheim GmbH has adopted the following policies regarding merchandise purchases and inven- tory. At the end of any month, the inventory should be 15,000 plus 90% of the cost of goods to be sold during the following month. The cost of merchandise sold averages 60% of sales. Purchase terms are generally net 30 days. A given month's purchases are paid as follows: 20% during that month and 80% during the following month. Purchases in May had been 150,000 and the inventory on May 31 was higher than planned at 210,000. The manager was upset because the inventory was too high. Sales are ext 300,000; July, 290,000; August, 340,000; and September, 400,000. tory was too high. Sales are expected to be June, 1. Compute the amount by which the inventory on May 31 exceeded the 2. Prepare budget schedules for June, July, and August for purchases a sedules for June, July, and August for purchases and for disbursements for purchases. 7-35 Cash Budget Consider the budgeted income statement for Carlson Company for June 20xA The cash balance, May 31, 20X4, is $15,000. Sales proceeds are collected as follows: 80% month of sale, 10% e collected as follows: 80% month of sale, 10% second month, 10% third month. Accounts receivable are $44,000 on May 31, 20x4, consistir $24,000 from May sales. Accounts payable on May 31, 20x4, are $145,000. Carlson Company pays 25% of purchases during the month of ni the following month. hich the inventory on May 31 exceeded the company's policies. ent for Carlson Company for June 20x4 in Exhibit 7-13. $44.000 on May 31, 20X4, consisting of $20,000 from April sales and