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WILL RATE GOOD THANK YOU!!! Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $87,500 and accounts payable of $49,500.

WILL RATE GOOD THANK YOU!!!image text in transcribedimage text in transcribed

Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $87,500 and accounts payable of $49,500. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Month Actual Sales Month Budgeted Sales $75,000 Juy May $45,000 lune 80,000 August 40,000 September 50,000 0ctoer 60.000 All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent f sales revenue. Ending inventory is one-half of the next manth's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in the month after purchase. Operating costs are estimated at $14,000 each month and are paid during the month incurred. Required Prepare purchases and cash budgets for July, August, and September Do not use a negative sign with your answers MTC Wholesalers Purchases Budget For the Months of July, August, and September July September August Imvenory reauired, current sales Desired ending inventory Total inventery needs Lss bexinning inventory Purchases Do not use a negative sign with your answers Do not use a negative sign with your answers. MTC Wholesalers Cash Budget For the Months of July, August, and September July September August Cash balance, beginning $ 0 $ O$ 0 Cash receipts Current month's sales 0 0 Previous month's sales 0 0 Sales two months prior 0 Total receipts 10 Cash available 0 Cash disbursements: Purchases 10 Operating Costs Total disbursements 0 Cash balance, ending $ O $ O $ 10

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