Question $15$

PROBLEM II: $22$POINTS

Copycat has accumulated the following budget information for the three months of the coming fiscal year:

The company expects to sell about $20\%$ of its merchandise for cash. Of sales on account, $60\%$ are collected in the

month of the sale, $15\%$ in the month following the sale, and the remainder in the second month following the sale.

$70\%$ of the merchandising costs are paid in the month in which they are incurred, and the balance in the following

month.

As of July $1,$ accounts receivable is of $$60,000$ for which it will be received in July.

As of July $1,$ accounts payable is $$180,000$ for materials purchases and will be paid in July.

REQUIRED:

Prepare a schedule of cash collection monthly and for the quarter in total.

Prepare a schedule of cash payments for purchases of merchandise monthly and for the quarter in total.