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Item 1 11.11 points
Mast Corporation seeks your assistance in developing cash and other budget information for May, June, and July. At April 30, the company had cash of $10,000, accounts receivable of $874,000, inventories of $143,880, and accounts payable of $35,975. The budget is to be based on the following assumptions.
Purchase data are as follows.
Dollars | Units | ||
March | $ | 172,800 | 10,800 |
April | 225,600 | 14,100 | |
May | 174,400 | 10,900 | |
June | 182,400 | 11,400 | |
July | 192,000 | 12,000 | |
August | 15,200 | 12,200 | |
Required:
a. Compute the budgeted purchases in dollars
for May.
b. Compute the budgeted purchases in dollars for
June.
c. Compute the budgeted cash collections during
May. (Do not round intermediate calculations. Round your
final answer to nearest whole dollar.)
d. Compute the budgeted cash disbursements during
June. (Do not round intermediate calculations.
Round your final answer to nearest whole
dollar.)
e. Compute the budgeted number of units of
inventory to be purchased during July.
May | June | July | August | |
Expected Sales units | 10900 | 11400 | 12000 | 12200 |
Add Desired ending inventory | 13680 | 14400 | 14640 | |
Total Needs | 24580 | 25800 | 26640 | |
Less Beginning Inventory | 13080 | 13680 | 14400 | |
Purchase units | 11500 | 12120 | 12240 | |
Cost per unit | $ 11 | $ 11 | $ 11 | |
Purchase cost | $ 126,500 | $ 133,320 | $ 134,640 |
a. Budgeted purchases for May = $126500
b. Budgeted purchases for June = $133320
c. Budgeted Cash Collections in May = $174400x70%x98% +
174400x15%+225600x12% = $172870.40
d. Budgeted Cash Disbursements = $133320x56%+126500x44% =
$130319.20
e. Budgeted number of units of inventory to be purchased during
July = 12240 units
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Item1 2.08points eBook Print References Check my workCheck My Work button is now enabled3 Item 1 Item 1 2.08 points Exercise 13-3 Computing and interpreting common-size percents LO P1 2019 2018 2017 2016 2015 Sales $ 425,690 $ 274,639 $ 222,380 $ 150,257 $ 114,700 Cost of goods sold 206,781 133,527 109,892 73,623 55,056 Accounts receivable 20,689 16,039 15,189 8,775 7,857 Compute trend percents for the above accounts, using 2015 as the base year.
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Mast Corporation seeks your assistance in developing cash and other budget information for May, June, and July. At April 30, the company had cash of $11,000, accounts receivable of $876,000, inventories of $106,920, and accounts payable of $30,536. The budget is to be based on the following assumptions. Each month’s sales are billed on the last day of the month. Customers are allowed a 2 percent discount if payment is made within 10 days after the billing date. Receivables are...
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