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The company is in the process of preparing a budget for October and assembled the following data: Sales are budgeted at $ 3 4 0
The company is in the process of preparing a budget for October and assembled the following data:
Sales are budgeted at $ for October and $ for November. Of these sales, will be for cash; the remainder will be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining are collected in the following month. All of the September accounts recelvable will be collected in October.
The budgeted cost of goods sold is always of sales and the ending merchandise inventory is always of the following month's cost of goods sold.
All merchandise purchases are on account. Thirty percent of all purchases are pald for in the month of purchase and are pard for in the following month. All of the September accounts payable to suppliers will be pald during October.
Selling and administrative expenses for October are budgeted at $ exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $ for the month.
Begulred:
Using the information provided, calculate or prepare the following for October:
a The budgeted cash collections.
b The budgeted merchandise purchases.
c The budgeted cash disbursements for merchandise purchases.
d The budgeted net operating income.
e Anendofmonth budgeted balance sheet.
Assume the following changes to the underlying budgeting assumptions:
of a month's credit sales are collected in the month the sales are made and the remaining are collected in the tollowing month
The ending merchandise inventory is always of the following month's cost of goods sold
of all purchases are pard for in the month of purchase and are pald for in the following month.
Using these new assumptions, calculate or prepare the following for october:
a The budgeted cash collections.
b The budgeted merchandise purchases.
c The budgeted cash disbursements for merchandise purchases.
d Net operating income.
e An endofmonth budgeted balance sheet.
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