Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q.1 budget schedules: the following data apply to the HASF Hardware Store and its 2011 budget Forecast Sales Jan $200,000 Feb $160,000 Mar $180,000 Apr
Q.1 budget schedules: the following data apply to the HASF Hardware Store and its 2011 budget
Forecast Sales | |
Jan | $200,000 |
Feb | $160,000 |
Mar | $180,000 |
Apr | $45,000 |
Balance Sheet Data |
|
December 31,2010 |
|
cash | $80,000 |
Account receivable: |
|
November sales | 45000 |
December sales | 50000 |
Inventory | 54000 |
Account payable(merchandise) | 27000 |
Other data are as follows:
- Sales are on credit with 30% of sales collected in the same month after sale ,70% in the second month after sale
- Cost of goods sold is 70% of sales
- Other variables costs are 40% of sales paid in the month incurred
- Inventories are to be 65% of next months budgeted sales requirements
- Fixed expenses are equal to other variable expense per month; all require cash
- Credit time period for purchases are 30 days
Required:
- prepare budget of purchase for each of the first three months of 2011
- prepare separate budgets of cash receipts and disbursements and cash budget for each of the first three months of 2011
- prepare a budget income statement for the first quarter of 2011
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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