Question
What if Clapton Company in Example 9-1 Download Example 9-1changed their desired ending inventory level to equal 12.4% of next quarter's budgeted sales instead of
What if Clapton Company in Example 9-1 Download Example 9-1changed their desired ending inventory level to equal 12.4% of next quarter's budgeted sales instead of 20%. How many budgeted units would be produced in the 3rd quarter (July - September)? Round your answer to the nearest whole unit.
Example #9 CASH PAYMENTS BUDGET Sandhill Company
|
| September | October | November | December |
| Purchases |
| $30,000 | $75,000 | $50,000 |
| Cash Operating Costs |
| $5,000 | $8,000 | $10,000 |
| Cash paid for income taxes |
| $1,000 | $2,500 | $1,300 |
| Accounts Payable at End of Month | $15,000 |
|
|
|
If all purchases are paid according to the following schedule, prepare a schedule of Cash Disbursements for October, November and December. The Accounts payable ending balance from September is expected to be paid in full in October.
Purchases are paid for as follows:
| In Month of Purchase | 80% |
| In Month After Purchase | 20% |
Requirement: Prepare a cash payments budget for the 4th quarter (October, November, December) for Sandhill Company.
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Auditors Guide To IT Auditing
Authors: Richard E. Cascarino
2nd Edition
1118147618, 978-1118147610
