Prepare purchases and cash budgets for july

Assignment Help Accounting Basics
Reference no: EM133124205

Question - Purchases and Cash Budgets - On July 1, MTC Wholesalers had a cash balance of $245,000 and accounts payable (related to inventory purchases) of $138,600. Actual sales for May and June, and budgeted sales for July, August, September, and October are:

Month

Actual Sales

Month

Budgeted Sales

May

$210,000

July

$126,000

June

224,000

August

112,000



September

140,000



October

168,000

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 of sales revenue. Ending inventory is one-half of the next month'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 $39,200 each month and are paid during the month incurred.

 Required - Prepare purchases and cash budgets for July, August, and September.

Reference no: EM133124205

Questions Cloud

Why is china so prominent in map : Why is China so prominent in this map? Why is Korea bigger than Japan, or even Africa (depicted as a peninsula to the far left, with a strange lake in the middl
Explain an arbitrage opportunity : Explain an Arbitrage opportunity between price discrepancies in 2 different forex markets. Ex. Price of $ to pound in market A. vs market B. how would one profi
Focus on cluster analysis : What are the characteristics of data? Compare the difference in each of the following clustering types: prototype-based, density-based, graph-based.
Explore public and not-for-profit management : Create a mind map showing how the main themes and concepts from these sessions relate to each other. Your mind map should be no more than 200 words.
Prepare purchases and cash budgets for july : Operating costs are estimated at $39,200 each month and are paid during the month incurred. Prepare purchases and cash budgets for July
Economic impact of the transformation in saudi arabia : What is the economic impact of the transformation in Saudi Arabia?
7SSMM607 Advanced Financial Reporting Assignment : 7SSMM607 Advanced Financial Reporting Assignment Help and Solution, King's College London - Assessment Writing Service
Total income of oil exporting countries : How will price changes affect the total revenue or total income of oil exporting countries?
Research and find examples of countries that import : Research and find examples of 2 countries that import oil and two countries who export oil and how these countries have been affected by oil price changes.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd