Questions 5&6

d, What items appear in the operating budget? are budgets used throughout the e. How are budgets used to evaluate performance? t memo to your instructor summarizing your findings. Prepare a me Clothiers expects to make inventory purchases in the finst quarter 5. Shatz Fine Clothiers ex of 20X5 as follows: $50,000 60,000 70,000 January February March Historical data shows that the company pays for 70 percent of its purchases in the month of purchase and the remaining balance is paid in the month following the purchase. On January 1, 20X5, the company owed $20,000 for prior-year purchases. a. Prepare a schedule of cash payments for January, February, and March. b. What amount of accounts payable will be outstanding on March 31? 6. Major Drumstick Poultry Company expects to have the following sales in the first quarter of 20X5 January February March $70,000 80,000 90,000 Historical data shows that the company collects 80 percent of its sales in the month of the sale and the remaining balance is collected in the month follow- ing the sale. On January 1, 20X5, accounts receivable related to December sales totaled $10,000. a. Compute total sales for December 20X4. b. Prepare a schedule of cash receipts for January, February, and March. c. What amount of accounts receivable will be outstanding on March 31? Smith Company estimates that it will sell 1,000 units of its product in each of the first three fiscal quarters of the coming year. It expects to sell 1,500 units in the fourth quarter. Its product sells for 810 per unit. The company presi- dent expects 90 percent of sales to be collected in cash in the quarter when 7. oilbe collected in the following quarter