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Question 6 (7 points) Saved Selected amounts are shown below re Amber Limited with respect to their expected activity in the next quarter April May

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Question 6 (7 points) Saved Selected amounts are shown below re Amber Limited with respect to their expected activity in the next quarter April May June Sales $100,000 $110,000 $130,000 Cost of goods sold 60,000 66,000 78,000 Gross margin 40,000 44,000 52,000 Selling and administrative expense 15,000 16,500 19,500 Operating Income $25,000 $27,500 $32,500 60% of sales are cash sales and 40% of sales are credit sales. 20% of all credit sales are collected in the month of the sale and the remaining 80% are collected in the month following the sale. Budgeted sales for July are $140,000. 10% of merchandise inventory purchases are paid in cash at the time of purchase. The remaining 90% of purchases are credit purchases. All purchases on credit are paid in the month following the purchase Required Enter your answer without commas or dollar signs rounded to the nearest dollar. E.g. for $1,567,000.45 would be 1567000. If you do not think a dollar value is relevant, enter "na" as follows: na 1. What are the cash collations in May? (2 marks) 2. What are the budgeted purchases in May? (2 marks) 3. What amount is accounts receivable at the end of May? (1 mark) 4. What amount is the amount of inventory at the end of May? (1 mark) 5. What amount is accounts payable at the end of May? (1 mark) Question 6 (7 points) Saved Selected amounts are shown below re Amber Limited with respect to their expected activity in the next quarter April May June Sales $100,000 $110,000 $130,000 Cost of goods sold 60,000 66,000 78,000 Gross margin 40,000 44,000 52,000 Selling and administrative expense 15,000 16,500 19,500 Operating Income $25,000 $27,500 $32,500 60% of sales are cash sales and 40% of sales are credit sales. 20% of all credit sales are collected in the month of the sale and the remaining 80% are collected in the month following the sale. Budgeted sales for July are $140,000. 10% of merchandise inventory purchases are paid in cash at the time of purchase. The remaining 90% of purchases are credit purchases. All purchases on credit are paid in the month following the purchase Required Enter your answer without commas or dollar signs rounded to the nearest dollar. E.g. for $1,567,000.45 would be 1567000. If you do not think a dollar value is relevant, enter "na" as follows: na 1. What are the cash collations in May? (2 marks) 2. What are the budgeted purchases in May? (2 marks) 3. What amount is accounts receivable at the end of May? (1 mark) 4. What amount is the amount of inventory at the end of May? (1 mark) 5. What amount is accounts payable at the end of May? (1 mark)

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