Merchandise purchases budget for november and december

Assignment Help Managerial Accounting

Reference no: EM133348403

Question: Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:

Sales are budgeted at $250,000 for November, $260,000 for December, and $240,000 for January.
Collections are expected to be 40% in the month of sale and 60% in the month following the sale.
The cost of goods sold is 70% of sales.
The company desires an ending merchandise inventory equal to 20% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase.
The November beginning balance in the accounts receivable account is $60,000.
The November beginning balance in the accounts payable account is $247,000.

Required:

a. Schedule of Expected Cash Collections for November and December.

b. Merchandise Purchases Budget for November and December.

Reference no: EM133348403

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